A study conducted by researchers at the Complexity Science Hub has found that supply chain disruptions can significantly increase credit risks for banks, potentially by 70%.
The research emphasizes the complex mutual credit relationships between banks, which can lead to destabilization within the financial system, reminiscent of the 2007-08 financial crisis.
These findings highlight the importance of understanding how external factors, like supply chain issues, can impact financial stability and the interconnectedness of banking institutions.