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GRAFinancial StabilityIn development
STEM foundation

STEM foundation of Financial Stability

The science, technology, engineering and mathematics Financial Stability rests on. Each method has a canonical page in the STEM Commons, hosted by GCRI, and a page here on how it is applied in this field.

Open Financial economics and macro-finance at Financial Stability Back to Financial Stability
Financial StabilityRegister
  1. 01MethodFinancial economics and macro-finance at Financial Stability
  2. 02MethodNetwork science and contagion for financial stability
  3. 03MethodComplex systems and agent-based modelling for financial stability
  4. 04MethodScenario design and stress testing for financial stability
  5. 05MethodEconometrics for financial stability

GRA · In development · service level R0

01In brief

The short answer.

The Financial Stability STEM foundation is the set of canonical methods its findings depend on, from financial economics and macro-finance to econometrics. For the Consortium, Financial Stability stewards financial economics and macro-finance. Each method has a canonical STEM Commons page and a page here on its use in the financial stability field.

02Canvas

Methods feeding this platform.

Canvas · methods feeding this platformDesign, not a record
STEM foundation of Financial Stability: bank stress testA scenario is designed and the balance sheet projected; credit losses, net interest income and market losses are estimated; capital ratios are compared with the hurdle, management actions considered and the supervisor reviews. Design of the process, not a record of a run.

Fig.The methods this platform draws on and what each one feeds. Design, not a record.

03Geography

Activity and exposure in Europe.

For STEM foundation of financial stability, in GRA's spatial-finance reading, the map opens on population density and night lights with built-up and settlement extent from NASA GIBS, framed on Europe; 3 further NASA layers wait in the list.

The interactive map needs JavaScript; the layer list and sources are below.

Layers 2

Activity and exposure, for this page

Latest available

NASA GIBS / EOSDIS · ASTER GDEM (METI, NASA) · Blue Marble (NASA) · © OpenStreetMap contributors (ODbL) · Natural Earth

Loading the latest NASA imagery.

Drag to move. Ctrl or ⌘ and scroll, pinch or the buttons to zoom; hover for the values under the pointer; reset returns to the region.

For STEM foundation of financial stability, in GRA's spatial-finance reading, the map opens on population density and night lights with built-up and settlement extent from NASA GIBS, framed on Europe; 3 further NASA layers wait in the list.Satellite and model products as NASA publishes them, each with its own date; indicators, not assessments of any place; claim ceiling INTEGRATED.

Data: NASA GIBS · ASTER GDEM · Blue Marble · © OpenStreetMap contributors · Natural Earth · GDACS · CIESIN/Columbia, NASA SEDAC HBASESources and licences

  • We acknowledge the use of imagery provided by services from NASA's Global Imagery Browse Services (GIBS), part of NASA's Earth Science Data and Information System (ESDIS). Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • We acknowledge the use of imagery provided by services from NASA's Global Imagery Browse Services (GIBS), part of NASA's Earth Science Data and Information System (ESDIS). Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • Center for International Earth Science Information Network (CIESIN), Columbia University. 2018. Gridded Population of the World, Version 4 (GPWv4): Population Density, Revision 11. NASA Socioeconomic Data and Applications Center (SEDAC). Licensed under CC BY 4.0. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). CC BY 4.0
  • VIIRS Black Marble night-time lights, NASA Goddard Space Flight Center; distributed by the NASA Level-1 and Atmosphere Archive and Distribution System (LAADS DAAC); imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • VIIRS near-real-time products (flood, land surface temperature, snow cover, corrected reflectance), NASA LANCE; imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • NASA Fire Information for Resource Management System (FIRMS), VIIRS 375 m active fire product, NASA LANCE; vector tiles via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • ASTER GDEM is a product of METI and NASA (ASTER Global Digital Elevation Model V003, NASA LP DAAC); imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • Made with Natural Earth. Free vector and raster map data @ naturalearthdata.com. Public domain
  • © OpenStreetMap contributors (ODbL), via NASA GIBS (coastlines, boundaries, roads and place names). Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). ODbL
  • Blue Marble, NASA Earth Observatory; imagery via NASA GIBS. Colours redrawn from the published colour map; values averaged into H3 cells where shown (modified). NASA open data
  • Context on the globe and flat map: coastlines, boundaries, roads and place names from NASA GIBS reference layers (OpenStreetMap data, ODbL, © OpenStreetMap contributors); Blue Marble imagery as an optional base; 3D terrain and the elevation read-out from the ASTER GDEM elevation colour index (5 m to 200 m classes, exaggerated for legibility). Boundaries are drawn as published and imply no position on any territory.
  • Globe: MapLibre GL JS 6.9.1, BSD-3-Clause, © MapLibre contributors.
  • Live: GDACS (EC JRC / UN OCHA) Events are indicative, not official warnings.
  • Context: CIESIN/Columbia, NASA SEDAC HBASE. Center for International Earth Science Information Network (CIESIN), Columbia University, and NASA Socioeconomic Data and Applications Center (SEDAC): Global Human Built-up And Settlement Extent (HBASE) 2010; Seto, Guneralp and Hutyra 2012, Global Grid of Probabilities of Urban Expansion to 2030; Global Urban Heat Island (UHI) Data Set, 2013.
  • Optional layers (5 sources in the layer list: live, forecast, observed and context) print their provider credit on the map and here when switched on; forecasts are model output and derived indices are estimates.

Layers and dates

  • Population density, 2020: Population: CIESIN, Columbia University, Gridded Population of the World v4.11 (2018), NASA SEDAC, CC BY 4.0 · static
  • Night-time lights, daily: VIIRS Black Marble (VNP46A2), NASA LAADS DAAC · 12 Oct 2026
  • Flood water, 3-day composite: VIIRS Global Flood Product, NASA LANCE · 14 Oct 2026
  • Active fires and thermal anomalies, last day: VIIRS NOAA-20 375 m (FIRMS), NASA LANCE FIRMS · 13 Oct 2026
  • Land surface temperature, day, 8-day composite: VIIRS NOAA-20 Level 3, 8-day, NASA LANCE · 14 Sep 2026

04Methods

The methods behind the field.

  1. Financial economics and macro-financeRun incentives in funds and banks · Leverage cycles · Implicit guaranteesSteward · Financial StabilityApplied here
    Canonical · STEM Commons
  2. Network science and contagionInterbank contagion simulation · Common exposure networks · Multilayer networksSteward · Systems Science and ModellingApplied here
    Canonical · STEM Commons
  3. Complex systems and agent-based modellingAgent-based market models · Early warning of regime shifts · Feedback loop mappingSteward · Systems Science and ModellingApplied here
    Canonical · STEM Commons
  4. Scenario design and stress testingMacro-financial scenario design · System-wide exercises · Reverse stress testsSteward · Systemic Risk ManagementApplied here
    Canonical · STEM Commons
  5. EconometricsEarly warning indicators · Quantile regression for growth-at-risk · Spillover estimationSteward · Economic DevelopmentApplied here
    Canonical · STEM Commons
05Methods

The STEM methods Financial Stability applies, and why.

Each Financial Stability method is described once in the STEM Commons at GCRI and applied here to contagion, liquidity and real-economy feedback.

06Why it matters

Grounding makes claims checkable.

When a finding names the methods it depends on, a reader can see its assumptions and limits, and an expert in that method can challenge it.

07Key terms

Terms used on this page.

Each term as this page uses it. Where a standard-setting body defines the term, the wording follows that body.

TermDefinition
STEM CommonsThe shared reference of science, technology, engineering and mathematics methods for the Nexus network, hosted by GCRI, with one canonical page per method and a named steward platform.
Steward platformThe platform that maintains the canonical description of a method in the STEM Commons and reviews how other platforms apply it.
Financial economics and macro-financeFinancial economics and macro-finance study how asset prices, credit and financial institutions interact with the real economy.
Network science and contagionNetwork science and contagion study how the structure of connections among entities shapes the spread of failures, information and disease.
08Sources

Where this page's references lead.

The bodies and documents this page is read against. Status and editions change; each link goes to the issuing body.

09Pages

Pages in STEM foundation of Financial Stability.

Method

Financial economics and macro-finance at Financial Stability

Method

Network science and contagion for financial stability

Method

Complex systems and agent-based modelling for financial stability

Method

Scenario design and stress testing for financial stability

Method

Econometrics for financial stability

10Questions

Questions and answers.

What is a steward platform?
The platform that maintains the canonical description of a method and reviews how it is applied across the Consortium.
Related

Around Financial Stability.

Financial Stability

Bring your expertise to this field.

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