Complexity Economics Society

Resilience of the System of Top US Banks.

The fall of SVB and Signature Bank are reflection of a much larger problem. In this short blog won’t go into the details of that or the actual dynamics of the failure.

Our goal is to show the current resilience of the System of top US banks as well as its evolution over the past few months. The banks that have been considered in our analysis are the top 12 indicated in the table below.

The evolution of resilience since November 2022 until mid-March 2023 is show below. It is clear how resilience fell rapidly from 70% to approximately 50% on March 14-th.

A look at the Complexity Map on March 14-th shows where the hubs (the large squares on the diagonal) of the system are, as well as the main interdependencies:

The ranking of banks, in terms of their respective impact on the resilience of the system is reflected in the Resilience Profile:

PNC and Goldman Sachs alone are responsible for almost 50% of the resilience of the system.

There is no guarantee that contagion of SVB and Signature bank will propagate to other banks or deeper into the economy, but the current resilience of the system is so low that it is highly likely.

For a more detailed analysis, contact us.

Established originally in 2005 in the USA, Ontonix is a technology company headquartered in Como, Italy. The unusual technology and solutions developed by Ontonix focus on countering what most threatens safety, advanced products, critical infrastructures, or IT network security - the rapid growth of complexity. In 2007 the company received recognition by being selected as Gartner's Cool Vendor. What makes Ontonix different from all those companies and research centers who claim to manage complexity is that we have a complexity metric. This means that we MEASURE complexity. We detect anomalies in complex defense systems without using Machine Learning for one very good reason: our clients don’t have the luxury of multiple examples of failures necessary to teach software to recognize them. We identify anomalies without having seen them before. Sometimes, you must get it right the first and only time!

2 comments on “Resilience of the System of Top US Banks.

  1. This is so powerful and interesting as usual. I always tell Csuites: know your business resilience before resilience exposes your business as it might be too late. Thank you once again our Captain for this evidence-based piece.


  2. Mike Sheh

    Good stuff!


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: