The Hidden Risks of Financial Leverage
![Synchronization is demonstrated across a range of frequencies-[latex] \omega_{1} = \omega_{2} = 0.8, 0.6, 0.3 [/latex]-with a fixed phase relationship of [latex] \pi_{1} = 0.5 [/latex], highlighting consistent behavior despite parameter variation.](https://arxiv.org/html/2601.01505v1/nuova.png)
New research reveals how interconnected bank leverage can amplify systemic risk and contribute to financial crises.
![Synchronization is demonstrated across a range of frequencies-[latex] \omega_{1} = \omega_{2} = 0.8, 0.6, 0.3 [/latex]-with a fixed phase relationship of [latex] \pi_{1} = 0.5 [/latex], highlighting consistent behavior despite parameter variation.](https://arxiv.org/html/2601.01505v1/nuova.png)
New research reveals how interconnected bank leverage can amplify systemic risk and contribute to financial crises.

New research reveals that equipping smaller language models with the ability to self-correct factual errors dramatically boosts their performance in complex financial classification tasks.
A new framework leverages the power of autonomous AI agents to deliver faster, more transparent, and accurate credit risk assessments.
New research reveals that a select group of U.S. banks act as critical conduits for systemic risk, amplifying the impact of economic and policy changes.
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![The system classifies Parkinson’s disease by fusing information from MRI cortical thickness, clinical assessments, MRI volumetric data, and demographic features, employing modality-specific encoding followed by symmetric cross-attention between cortical and clinical data, then sparse attention-gated multimodal fusion weighted by learnable parameters [latex]\alpha_{1}-\alpha_{4}[/latex] to generate a representation [latex]\mathbf{H}[/latex] for predicting disease probability.](https://arxiv.org/html/2601.00519v1/x2.png)
Researchers are leveraging artificial intelligence to better understand and profile the severity of Parkinson’s Disease using a combination of diverse patient data.

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A novel application of quantized tensor trains offers a scalable solution for accurately pricing options on multiple underlying assets, a longstanding challenge in computational finance.
A new stochastic model captures the erratic nature of trust, moving beyond traditional approaches to account for unpredictable jumps in decision-making.
Researchers have introduced a comprehensive dataset and evaluation framework to better assess the ability of artificial intelligence to understand and interpret financial credit information from both visual and textual sources.