Reputation model reveals how banks drag each other down

Network study shows bottom-line impact of bad news elsewhere

network
Network effects: harm to an individual bank's reputation can be contagious

Bad news at one bank can tarnish the entire industry, with measurable impacts on the reputation and even the bottom line of other institutions, according to research by Peter Mitic, UK head of operational risk methodology at Santander.

Mitic used daily reputation ratings for 10 UK banks provided by Alva, a specialist consultancy. His analysis compared larger-than-average movements in the reputation of each bank, and determined how often a significant rise (or fall) in one bank's rating was

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