Leverage Control and Quantitative Management: The Analysis of Amplification Effect on Financial System
Volume 19, Issue 2 (2016), pp. 7–16
Pub. online: 4 August 2022
Type: Article
Open Access
Published
4 August 2022
4 August 2022
Abstract
Maintaining the stability of financial leverage is a task in macro-economic management and also a challenge to be faced. Financial amplification characteristics dominate financial leverage system with low risk of capabilities, and the efficiency of this ability has two-sides results and proposes a lot of risks, however, most researchers have not found the best ways to solve this problem. Therefore, taking positive measures to strengthen the management of the financial system leverage feature becomes very important. In this paper, authors use comparative study and data analysis to illustrate the main problems of financial system leverage, the effect of leverage amplification characteristics, bi-amplified comparative analysis of profit and loss, and bi-amplification characteristics of the risk analysis. Meanwhile, based on five classified management methods, authors put forward countermeasures to the management of leverage properties in financial system.