SOC Financial Resilience App

Detect the Breaking Point Before It’s Too Late

Financial System

Systemic Risk

ECB Coordination

Step 1: Select Financial System Component

Financial systems can rapidly destabilize when stress builds across banks, payment platforms, or capital markets. Local disruptions—such as liquidity strain or credit concentration—can spread quickly, impacting institutions across the network.

What You Can Do: Track stress across core banking institutions, monitor interbank exposure, and anticipate liquidity shortfalls before they trigger wider contagion.

🏦 Banking System

SYSTEMIC

Core banking institutions including Santander, BBVA, CaixaBank, and regional banks. High interconnectedness through interbank lending creates systemic vulnerability to cascade failures.

Key Risks: Credit concentration, liquidity stress, sovereign exposure

142 Institutions Contagion Risk: EXTREME

💳 Payment & Settlement Systems

HIGH

TARGET2, SEPA, card payment networks, and real-time payment systems. Critical infrastructure for daily transaction processing with potential for operational disruption cascades.

Key Risks: Operational failures, cyber incidents, settlement delays

28 Core Systems Disruption Risk: HIGH

📈 Capital Markets Infrastructure

HIGH

BME, Iberclear, derivative clearing systems, and securities trading platforms. Market structure vulnerabilities can amplify volatility and create liquidity stress across interconnected markets.

Key Risks: Market volatility, clearing failures, liquidity spirals

35 Market Entities Volatility Risk: HIGH

🛡️ Insurance & Pension Funds

MEDIUM

Major insurers like Mapfre, Mutua Madrileña, and pension fund administrators. Potential for procyclical behavior during market stress, contributing to financial stability risks.

Key Risks: Asset fire sales, longevity risk, climate exposure

89 Major Entities Systemic Risk: MEDIUM

Step 2: Financial Stress Scenario and Risk Configuration

Macroprudential Stress Testing Framework

Select financial stress scenarios and transmission mechanisms for comprehensive systemic risk analysis. SOC parameters will be calibrated to match historical crisis patterns and regulatory stress test requirements.

Select Financial Stress Scenario

🏛️ Sovereign Debt Crisis

SC-1

Severe deterioration in Spanish sovereign creditworthiness, triggering bank-sovereign doom loop and widespread deleveraging across the financial system.

Transmission Channels:

Sovereign Exposure Funding Stress Credit Crunch

SOC Parameters: β=0.95 (high contagion), θ=0.70 (low resilience)

🏦 Banking Sector Shock

SC-2

Major Spanish bank failure or systematic credit losses triggering interbank market freezing and contagion through the European banking network.

Transmission Channels:

Interbank Contagion Liquidity Hoarding Asset Fire Sales

SOC Parameters: β=0.92 (rapid spread), θ=0.65 (systemic vulnerability)

🏠 Real Estate Market Collapse

SC-3

Sharp correction in Spanish property prices triggering mortgage defaults, bank losses, and broader economic contraction amplified by household deleveraging.

Transmission Channels:

Mortgage Defaults Collateral Devaluation Wealth Effects

SOC Parameters: β=0.88 (sectoral spread), θ=0.75 (moderate resilience)

🇪🇺 European Financial Contagion

SC-4

Financial crisis originating in other eurozone countries spreading to Spain through cross-border banking exposures, ECB policy constraints, and market sentiment contagion.

Transmission Channels:

Cross-border Exposure ECB Policy Market Sentiment

SOC Parameters: β=0.90 (external shock), θ=0.80 (policy support)

Stress Test Configuration Parameters

Stress Test Severity

Determines shock magnitude and SOC threshold parameters

Contagion Speed

Affects stress redistribution velocity in SOC model

Policy Response Framework

Influences system resilience and recovery dynamics

Economic Environment

Sets baseline stress levels and amplification factors

Advanced SOC Model Parameters (Auto-calibrated)

Contagion Coefficient (β)

0.90

Auto-set based on scenario selection

Resilience Threshold (θ)

0.75

Based on institutional strength

Shock Magnitude (Δs)

0.12

Calibrated to stress test severity

Analysis Horizon

36 months

Standard stress test horizon

SOC Financial Stability Analysis in Progress

Executing macroprudential stress simulation...

Initializing financial system model...

Real-time Analysis Updates

Establishing baseline financial system state...

Executive Summary

HIGH

Systemic Risk Level

73%

Contagion Probability

8.5m

Avg. Time to Contagion

€45B

Est. Capital Impact

Key Findings

Systemic Institutions

Contagion Channels

Policy Recommendations

Regulatory Insights

Technical Analysis

Systemically Important Institutions

Financial institutions whose failure would trigger the most severe systemic consequences.

SOC Financial Resilience App

Step 1: Select Financial System Component

🏦 Banking System

💳 Payment & Settlement Systems

📈 Capital Markets Infrastructure

🛡️ Insurance & Pension Funds

Step 2: Financial Stress Scenario and Risk Configuration

Macroprudential Stress Testing Framework

Select Financial Stress Scenario

🏛️ Sovereign Debt Crisis

🏦 Banking Sector Shock

🏠 Real Estate Market Collapse

🇪🇺 European Financial Contagion

Stress Test Configuration Parameters

Advanced SOC Model Parameters (Auto-calibrated)

SOC Financial Stability Analysis in Progress

Real-time Analysis Updates

Financial Network Stress Visualization

Executive Summary

Key Findings

Systemically Important Institutions

Vulnerability Concentrations

Primary Transmission Mechanisms

Cross-Border Spillovers

Macroprudential Recommendations

Crisis Management Measures

Supervisory Priorities

Stress Testing Insights

SOC Model Calibration

Network Structure Analysis