Financial Network Analytics @ Bank of Canada
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The document discusses a workshop presentation focused on financial network analytics and the tools for understanding financial institutions and markets. It highlights the increasing volume of financial data and the importance of analytics for policy-making, especially in light of the recent financial crisis. The author emphasizes the need for integrating data and developing innovative tools to explore and model the financial system.
Financial Network Analytics @ Bank of Canada
- 1. Presentation at Bank of Canada Workshop on Understanding Financial Institutions and Markets: Theory and Data2 June 2011Financial Network AnalyticsKimmo Soramäkikimmo.soramaki@fna.fi
- 2. PerspectiveUnderstanding financial institutions and marketsTheoryDataFocus on the tools and processfor research and policy
- 3. Katsushika Hokusai. The great wave off Kanagawa ~1830
- 4. Eratosthenes' map of the known world, c. 194 BC
- 5. Go is a board game that originated in China more than 2,000 years ago.
- 6. Data delugeData tsunami - digital information is doubling every 1.2 yearsRegulatory response to recent financial crisis was to strengthen macro-prudential supervision with mandates for more regulatory dataThe challenge will be to understand and analyze the data (public, commercial and regulatory)Data enables “Analytics based policy”, i.e. the application of computer technology, operational research, and statistics to solve problems
- 7. Network mapsRecent financial crisis brought to light the need to look at links between financial institutionsWay to present data. Mapping of the financial system has only begunReduce uncertainty about interconnections Garrett, Mahadeva and Svirydenska (2011)Soramaki, Bech et al (2006)
- 8. IntelligenceFinancial crisis are different and rare Pattern recognition is hard for computers -> the best Go programs only manage to reach an intermediate amateur levelThe patterns to be recognized must be frequent enough for computers to learnA solution is to augment human intelligence (in contrast to AI)
- 9. Roots of the workBof-PSS2Bank of Finland, 1997-Payment system simulator used in ~60 central banksLokiSandia National Laboratories, 2004-Toolkit for network analysis and ABMSponsored by Norges Bank, collaborative efforts with other central banks
- 11. Data tools in FNA
- 12. Network analysis in FNA
- 13. Network visualization in FNA
- 14. Demo
- 15. VersionsWeb
- 16. Cloud service
- 17. REST API (for accessing FNA engine from web applications)
- 18. Intranet
- 19. Operative use
- 20. Integration to databases and user management
- 22. Desktop
- 23. By demand, academic use
- 24. Command line version available
- 25. Integration with external programs like Matlab, Stata, Excel, etc.AvailabilityPrivate beta in July 2011Official release in August 2011Core (graph engine, algorithms, visualizations) is open source (GPL) Desktop version is free for academic use
- 26. VisionDevelop tool for explorativeanalysisof the financial systemProvide a platform for building agent based and simulation modelsMake advances in research available to policyIntegrate data feeds and available databases
- 27. Thank youMore informationwww.financialnetworkanalysis.comContact uskimmo.soramaki@fna.fi