CHAPTER 6 Complexity in banking
6.1 Introduction
Banks and financial institutions have been becoming more and more complex over the past few decades. Complexity in banking brought attention to regulators and researchers during the 2007–2009 global financial crisis, when complex structured financial products suffered from huge losses and almost brought down the entire financial system. Since then, more questions have been raised on why banks choose to be so complex and what complexity in banking means for the stability of the financial system.
Banks are complex in many dimensions. They are complex in their organizational structure, they are complex in the products that they design to offer customers, they are complex ...
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