Logarithm and Systemically Important Bank: Difference between pages

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imported>Doug Williamson
m (Expand to say "more" generally.)
 
imported>Doug Williamson
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1.
(SIB).


The mathematical function which is the inverse of "raising to the power of".
A bank whose disorderly failure would, because of its:


Usually abbreviated to "log".
(i) Size,
(ii) Complexity, and


For example working with logarithms to the base 10:
(iii) Systemic interconnectedness


log<sub>10</sub>(100) = 2
cause significant disruption to the wider financial system and to economic activity in its (main) country or region of operation.


And 10<sup>2</sup> = 100
More generally with logarithms to the base n:
log<sub>n</sub>(x) = the power which, when 'n' is raised to it = x
For example 10<sup>(log<sub>10</sub>(x))</sup> = x
And, more generally, n<sup>(log<sub>n</sub>(x))</sup> = x


== See also ==
* [[BSBY]]
* [[Global SIFI]]
* [[Systemic risk]]
* [[Systemically Important Financial Institution]]  (SIFI)
* [[Too Big To Fail]]


2.
[[Category:Accounting,_tax_and_regulation]]
 
[[Category:The_business_context]]
The logarithm to the base 10.
[[Category:Identify_and_assess_risks]]
 
[[Category:Manage_risks]]
 
[[Category:Risk_frameworks]]
== See also ==
[[Category:Risk_reporting]]
* [[Natural logarithm]]

Revision as of 08:09, 13 March 2022

(SIB).

A bank whose disorderly failure would, because of its:

(i) Size,

(ii) Complexity, and

(iii) Systemic interconnectedness

cause significant disruption to the wider financial system and to economic activity in its (main) country or region of operation.


See also