Search results for "Bank run"
showing 2 items of 2 documents
Contagion and Bank Runs in a Multi-Agent Financial System
2012
In this work we explore contagion from one institution to another that can stem from the existence of a network of financial contracts. In fact, in modern financial systems, an intricate web of claims and obligations links the balance sheets of a wide variety of intermediaries (banks, for instance) into a network structure of interdependencies that have created an environment for feedback elements to generate amplified responses to shocks to the financial system. Small shocks, which initially affect only a few institutions, can indeed spread by contagion to the rest of the financial sector and cause a crisis in the connected intermediaries. Whether the financial crisis does spread depends c…
Banking Risk Management – RCB Strategy
2013
Abstract Risk can have a significant impact on a credit institution, both as an influence that is felt in recorded direct losses, and an influence whose effects are felt on customers, staff, business partners and even the bank authority. Banking risks are those risks that banks face in implementing current operations and not only specific risks of traditional banking. Bank risk is the degree of loss suffered by a bank where the counterparty (the client) bankrupts without being able to pay its obligations to the bank. Given the experience, banks agree that the most important cause of losses was the excessive concentration of risk on a customer, industry or economic sector, a country. It is i…