
Stability and Complexity in Model Banking Systems
Complexity and Systemic Risk: Hilary Term Seminar Series 2010
The Importance of Leverage Limits
In the early days of banking liability was not just unlimited, it was often as much personal as financial. In 1360 a Barcelona banker was executed in front of his failed bank to discourage future bankers from excessive risk taking. We've sleepwalked into a world in which leverage of 20 or 30 times capital is the rule, rather than the exception. Now is a good time to wake up. There are a lot of ideas floating around and what I've tried to do, and I have no idea really how successful, and I'm about to learn.
00:00
Transcript
Play full episode
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.