Skip to content

Systemic risk in banking ecosystems : Nature : Nature Publishing Group

by on January 19, 2011

Systemic risk in banking ecosystems

Journal name:
Nature
Volume:
469,
Pages:
351–355
Date published:
(20 January 2011)
DOI:
doi:10.1038/nature09659
Published online
19 January 2011

In the run-up to the recent financial crisis, an increasingly elaborate set of financial instruments emerged, intended to optimize returns to individual institutions with seemingly minimal risk. Essentially no attention was given to their possible effects on the stability of the system as a whole. Drawing analogies with the dynamics of ecological food webs and with networks within which infectious diseases spread, we explore the interplay between complexity and stability in deliberately simplified models of financial networks. We suggest some policy lessons that can be drawn from such models, with the explicit aim of minimizing systemic risk.

Interesting interplay between finances and ecology. It would be terrific if in systems analysis the financial could be subordinated to the ecological.

Advertisements

From → Uncategorized

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: