IMF paper models systemic risk in banking sector

imf-2

An International Monetary Fund paper published on Tuesday shows that the high correlation between insolvencies of large banks and smaller banks raises systemic risk in the banking sector.

Liliana Schumacher and Theodore Barnhill, the paper’s authors, propose a forward-looking simulation methodology to estimate the magnitude and probability of correlated solvency and liquidity risks in the banking system, and its impact on the real economy. In the model, banks fail from a solvency perspective

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: