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Financial diversity, risk and systemic stability
In this video, Prof Christine Oughton explains how financial instability can be caused by the loss of diversity in financial services.
In the financial industry as a whole, risk is spread by having different types of firms specialising in different activities. However recent changes in industry regulation have seen banks increasingly move in the same direction, leading to increased systemic risk.
In this video, Prof Christine Oughton from SOAS School of Finance and Management explains the sources of systemic risk in banking systems and shows how diversity across the sector can be a key factor in promoting stability.
