Team studies the innermost circle of the financial crisis
Friday, August 3, 2012 - 07:01
in Mathematics & Economics
(Phys.org) -- Too central to fail instead of too big to fail: whether banks pose a risk to the financial system when they get into distress has more to do with their level of networking than with their size. Economic researchers at ETH Zurich have developed a method to deduce the systemic importance of banks from their complex connections within financial networks.