It should be noted that information propagation always plays a critical role in the inception and transmission of systemic crisis. Thus, “information” and “intelligence”, or more precisely speaking, market intelligence, is of the utmost importance both for risk detection and for crisis management. Here both bottomup and top-down approaches are absolutely necessary.
Bottom-up information: market intelligence The history of financial crises provides clear evidence that systemic crisis is often ignited by the bankruptcy not of large firms, but of relatively small firms such as Sanyo Securities in Japan (1997) and Northern Rock in the United Kingdom (2007) (Fig. 9). This reveals one crucial aspect of financial intermediation, that is, information.