Economic Commentaries: Heat map for analysing the consequences of financial shocks

Date 09/09/2013

The Riksbank continually analyses and oversees the financial system in order to identify and assess risks and threats to financial stability. The Riksbank's assessments, which are largely based on an analysis of a range of quantitative and qualitative variables, are published twice-a-year in the Financial Stability Report. Risks relating to the financial infrastructure are also described in an annual report entitled the Financial Infrastructure Report. In order to more systematically analyse and illustrate the consequences if the risks identified in these reports are realised, a so-called heat map can be used. This Economic Commentary presents a method for producing a heat map to analyse the consequences of such financial stability crises. The Commentary also provides a concrete example of how the heat map can be used.

 

Read the whole Economic Commentary.