In the first figure you can select the exogenous relative shock applied to a selection of country-sectors (individually), market volatility of the surviving assets, and the interbank recovery rate. The figure will be automatically updated to show what is the relative equity loss suffered by the system of 26 systemic banks. First and second round can as well be observed individually to capture the role of banks’ portfolios overlap and interconnectedness in the financial system.

Similarly as in the first figure, on the second graph one is able to select shock size, market volatility and recovery rate. The figure will then shows both the size of first and second rounds individually for each strategy of allocation of exposures.

On last figure, you are allowed to select the country-sector to shock, as well as market volatility and interbank recovery rate and round that you want to observe. On the graph is then possible to observe the relative equity loss suffered by the system for each shock from 0% to 100%. It is interesting to note that, under certain assumptions, the diversified structure is more robust for small shocks than the empirical framework, while it is less robust for large shocks.




The SIMPOL Project is currently funded by the H2020 European grant DOLFINS (no. 640772) in the Global Systems Science area of the Future Emerging Technologies program.