Work

Systemic risk: the dynamics of model banking systems

Year: 2009

Type: article

Abstract: The recent banking crises have made it clear that increasingly complex strategies for managing risk in individual banks have not been matched by corresponding attention to overall systemic risks. We explore some simple mathematical caricatures for 'banking ecosystems', with emphasis on the interplay between the characteristics of individual banks (capital reserves in relation to total assets, etc.) and the overall dynamical behaviour of the system. The results are discussed in relation to potential regulations aimed at reducing systemic risk.

Source: Journal of The Royal Society Interface

DOI: 10.1098/rsif.2009.0359

Authors: Robert M. May, Nimalan Arinaminpathy

Institution: University of Oxford

Language: English

Topic: Banking stability, regulation, efficiency

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

Funder: University of Oxford

OpenAlex ID: W2117991189

FWCI: 27.62

Cites: 35

Cited by: 274

Related to: 10