Latest News | In financial ecosystems, big banks trample economic habitats and spread fiscal disease

[MikeLigalig.com]

In financial ecosystems, big banks trample economic habitats and spread fiscal disease

Researchers from Princeton University, the Bank of England and the  University of Oxford applied methods inspired by ecosystem stability and  contagion models to banking meltdowns and found that large national and  international banks wield an influence and potentially destructive  power that far exceeds their actual size. As a result, the capital that current regulations require large banks to  maintain should be based on the  institution's systemic importance.

Source: In financial ecosystems, big banks trample economic habitats and spread fiscal disease