The Central Bank of Colombia has been using balance sheet and regulatory reporting data to understand the liquidity and solvency of participants in the Colombian financial system. However, the analysis is time-consuming and the data comes months late.
Using network analysis of data from the interbank payment system would allow the Bank to get an early warning about risks substantially faster.
Using the FNA Platform, the Bank is now able to monitor its banking system in near real time. Automatic alerts notify the bank of any abnormal behavior in the network. Furthermore, automated stress tests where they fail the two largest participants in the network help to understand the riskiness of the system.
- Carlos León et al (2015). Assessing Systemic Importance With a Fuzzy Logic Inference System.