Keep Calm and Bank on: Panic-Driven Bank Runs and the Role of Public Communication
Information about #fdic#insurance and communication about #bank#stability by the #federalreserve can reassure depositors and mitigate #bankruns, while communication from political leaders only influences their electoral base.
“... we provide evidence that setting the risk-weighted ratio at 15\% and the simple leverage ratio at 10% would significantly decrease the probability of default without hampering banks' activities.”
The study investigated how ChatGPT and Bard categorize investor risk profiles compared to financial advisors. While there were no significant differences in the risk scores assigned by the chatbots an
The paper suggests that companies developing high-risk AI systems should demonstrate their safety before deployment, arguing for proactive risk management. It proposes a risk management approach where