The recent banking crises have made it clear that increasingly complex strategies for managing risk in individual banks and investment funds (pension funds, etc) has not been matched by corresponding attention to overall systemic risks.
Stability and Complexity in Model Banking Systems
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Simple mathematical caricatures of 'banking ecosystems', which capture some of the essential dynamics and which have some parallels (along with significant differences) with earlier work on stability and complexity in ecological food webs, have interesting implications. In particular, strategies that tend to minimise risk for individual banks can - under certain circumstances - maximise the probability of systemic failure. This talk will first sketch these models and the ensuing conclusions. Delivered by Professor Lord Robert May of Oxford: Department of Zoology, University of Oxford.
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Many of the systemic risks that we will need to address in the 21st century depend crucially on the often unanticipated consequences of interactions within and between different types of systems. The emerging, interdisciplinary field of complex systems provides a shared language as well as mathematical and computational models that can help us understand the challenges we face in this increasingly interconnected world. In this seminar series, leading researchers will explore the...
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