Introduction

This blog will analyse finance and banking and will discuss whether financial markets contain hidden connections and complexities that can expose potential fragilities in financial systems. The research will analysis whether a mismatch exists between the remit of institutions and government actors and the evolving, fast pace of finance and banking.

The concept of a Financial Innovation Model will also be considered. The FIM asserts that within banking and finance a rational maximizing function ranks preferences to ‘innovate’ to maximise gains. The FIM is bourne out of a desire to look deeper into financial markets to go beyond examination of detailed structures such as shadow banking and argue that such systems are simply tools the FIM utilises to maximise its gains. The FIM hypothesis claims a more detailed analysis beyond that of regulation is required as the model manoeuvres to prevent regulatory or institutional limits obstructing the pursuit of its goals.