Stories
Slash Boxes
Comments

SoylentNews is people

posted by janrinok on Thursday January 12 2017, @12:29PM   Printer-friendly
from the accountable-accountants dept.

Research on interbank networks and systemic importance is starting to recognise that the web of exposures linking banks' balance sheets is more complex than the single-layer-of-exposure approach suggests. We use data on exposures between large European banks, broken down by both maturity and instrument type, to characterise the main features of the multiplex (or multi-layered) structure of the network of large European banks. Banks that are well connected or important in one network, tend to also be well connected in other networks (i.e. the network features positively correlated multiplexity).

The different layers exhibit a high degree of similarity, stemming both from standard similarity analyses as well as a core-periphery analyses at the layer level. We propose measures of systemic importance that fit the case in which banks are connected through an arbitrary number of layers (be it by instrument, maturity or a combination of both). Such measures allow for a decomposition of the global systemic importance index for any bank into the contributions of each of the sub-networks, providing a potentially useful tool for banking regulators and supervisors in identifying tailored policy responses. We use the dataset of exposures between large European banks to illustrate that both the methodology and the specific level of network aggregation may matter both in the determination of interconnectedness and in the policy making process.

Source: Bank for International Settlements (BIS)

http://www.bis.org/publ/work603.pdf


Original Submission

 
This discussion has been archived. No new comments can be posted.
Display Options Threshold/Breakthrough Mark All as Read Mark All as Unread
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
  • (Score: 3, Informative) by Thexalon on Thursday January 12 2017, @10:38PM

    by Thexalon (636) on Thursday January 12 2017, @10:38PM (#453101)

    Yup, why else would the tax code be longer than any one person could possibly hope to ever understand?

    Both of you are implying far more intelligence and planning that makes any sense.

    The confusing tax code can be adequately explained by: Rich people and/or the businesses they control buy off politicians to get tax breaks for themselves. The politicians, trying to hide this simple and obvious process from pesky voters and also trying to maximize their own profit, make their giveaways as specific and convoluted as possible so that they only get applied to the people who paid for them. Neither the rich people nor the politicians are thinking past their own immediate short-term profits.

    And I should point out that it's so confusing that even the IRS is years behind understanding what the rules actually are.

    --
    The only thing that stops a bad guy with a compiler is a good guy with a compiler.
    Starting Score:    1  point
    Moderation   +1  
       Informative=1, Total=1
    Extra 'Informative' Modifier   0  
    Karma-Bonus Modifier   +1  

    Total Score:   3