Madness in the method: Basel grapples with G-Sib riskometer

Some experts warn the methodology to identify systemic banks could increase systemic risks

It’s a simile perhaps more compelling than it is pleasant, but there is a sense in which the contemporary, model-based approach to macroprudential policy is rather like a rectal thermometer.

Jon Danielsson, director of the Systemic Risk Centre at the London School of Economics, speaks critically of a “riskometer”, the idea that systemic risk is a homogeneous quantity that models can represent with a single, widely applicable measurement. “It is the belief that you can stick a riskometer into

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.risk.net/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 Risk.net 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: