This type of analysis is part of a growing area of research that is changing how regulators and banks manage financial risk. Some envision the technology eventually could be used to build a dashboard of the global financial system that regulators could monitor to spot crises before they hit. Other researchers are working on models that could someday be used to monitor financial markets. Similarly, enough historical data about activity in financial markets could help make better models of the future. Mark Flood, a research principal at the Office of Financial Research, says regulators shouldn’t be in control of the financial system.

Source: Wall Street Journal April 25, 2017 02:11 UTC