Closer ties between banks could mean more risk-taking

Model points to risks of core-periphery structure

Banking integration a good thing – but only in symmetrical networks

A more integrated financial system may encourage risky investment decisions – particularly if the network is not symmetrical, a conference at the London School of Economics and Political Science (LSE) heard on December 9.

Speaking at the LSE's Systemic Risk Centre, Cambridge University economist Sanjeev Goyal described his recent research with Andrea Galeotti and Christian Ghiglino from the University of Essex which used a simplified model to highlight the effect of the principal-agent problem

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Calibrating interest rate curves for a new era

Dmitry Pugachevsky, director of research at Quantifi, explores why building an accurate and robust interest rate curve has considerable implications for a broad range of financial operations – from setting benchmark rates to managing risk – and hinges on…

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