In financial ecosystems, big banks trample economic habitats and spread fiscal disease
Wednesday, November 14, 2012 - 16:31
in Earth & Climate
Researchers have applied methods inspired by ecosystem stability and contagion models to banking meltdowns and found that large national and international banks wield an influence and potentially destructive power that far exceeds their actual size. As a result, the capital that current regulations require large banks to maintain should be based on the institution's systemic importance.