Dynamics in Bank Crisis Model

Abstract

Bank crisis is grabbing more serious attention as several financial turmoils have broken out in the past several decades, which leads to a number of researches in this field. Comparing with researches carried out on basis of degree distribution in complex networks, this paper puts forward a mathematical model constructed upon dynamic systems, for which we mainly focus on the stability of critical point. After the model is constructed to describe the evolution of the banking market system, we devoted ourselves to find out the critical point and analyze its stability. However, to refine the stability of the critical point, we add some impulsive terms in the former model. And we discover that the bank crisis can be controlled according to the analysis of equilibrium points of the modified model, which implies the interference from outside may modify the robustness of the bank network.

Sovereign Credit Risk Assessment with Multiple Criteria Using an Outranking Method

“…In this context, a model with greater methodological clarity and objectivity such as the one proposed can help investors and serve as an additional tool to help them make investments. Thus, this paper proposes an objective approach to assess sovereign credit risk rating, which is considered a relevant topic in the literature due to misperceptions and arbitrary valuation of subjective aspects as experienced after subprime crisis [4][5][6][7][8].…”

“…In Step 4, the DM may be supported by an analyst to verify the consistency of the results and, if necessary, define which changes should be made to the set of reference alternatives or if any constraint should be added to the LPP for inferring the model parameters. Afterwards, Step 5 defines the final classification and further analysis can be made, such as comparing the results with well-known risk ratings, such as the Moody's and Standard & Poor's classifications to understand the differences among results, which are usually due to subjective aspects considered and interpreted by these agencies experts that may fail as recently exposed [4][5][6][7][8].…”

“…However, recent events have tarnished the image of these agencies. For many authors, errors in the way that the agencies assess risk were among the reasons for the crisis that began at the end of the last decade [4][5][6][7][8]. For Salvador et al [4] the subprime crisis began in 2007 with steady declines in sovereign bonds and structured products which brought to the forefront a debate about the quality and the true role of the agencies that rate risk.…”

Market Risk Early Warning Based on Deep Learning and Fruit Fly Optimization

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Study on the Dynamic Behavior of a Class of Heterogeneous Network Systems With Time Delay

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