Development of advanced models for predicting banking sector performance under stress conditions

Posted: Oct 28, 2025

• Prof. Natalie Laurent
• Prof. Samuel Laurent
• Prof. Sofia Kimura

Abstract

This research addresses challenges in banking sector stress testing by developing a novel computational framework that integrates quantum-inspired optimization algorithms with traditional financial modeling approaches. The framework draws inspiration from quantum computing principles and complex systems theory to create a predictive system that adapts dynamically to changing market conditions and captures the multi-scale nature of financial stress propagation. The primary research questions focus on whether quantum-inspired optimization can significantly enhance predictive accuracy in banking stress testing, how fractal analysis techniques can improve early warning signal detection, and whether multi-agent simulation approaches can better model systemic risk propagation compared to traditional econometric methods.