Moody's Analytics provides comprehensive tools to help regulators and systemically important financial institutions measure network connectivity in financial systems and surrounding, closely-linked counterparties.
Systemic risk is a significant problem in banking and finance. Such risks are manifested when shocks to individual banks are transmitted to other sectors of the financial industry and the economy more broadly.
As a result, regulators must identify systemically important institutions, find network-specific vulnerabilities, and identify conduits through which international shocks could be transmitted to their locale.
Systemically important financial institutions, on the other hand, can proactively address regulatory mandates and risk management objectives by measuring and reporting their connectivity and network exposures to other institutions.
Quantify contagion using measures and models
Moody's Analytics takes a quantitative approach to assessing the prevalence and magnitude of dynamic spillovers in default probabilities, equity returns, asset volatilities, or leverage ratios across financial institutions in the user-defined network.
Gain reliable metrics to monitor and manage systemic risk in financial networks
Moody's Analytics provides reliable, market-implied risk metrics, indicating which institutions drive the default risk of other firms in the system, as well as several key dimensions of systemic risk that arise from such interactions.
Tony oversees the Moody’s Analytics credit analysis consulting projects for global lending institutions. An expert applied econometrician, he has helped develop approaches to stress testing and loss forecasting in retail, C&I, and CRE portfolios and recently introduced a methodology for stress testing a bank’s deposit book.
Sam leads the quantitative research team within the CreditEdge™ research group. In this role, he develops novel risk and forecasting solutions for financial institutions while providing thought leadership on related trends in global financial markets.
Assess, visualize, and manage your institution's systemic risks with this vital tool focused on network connectivity and spillover effects between institutions.