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Computational Economics

, Volume 47, Issue 1, pp 3–17 | Cite as

Interbank Exposure Networks

  • Sam Langfield
  • Kimmo Soramäki
Article

Abstract

Financial institutions are highly interconnected. Consequently, they form complex systems which are inherently unstable. This paper reviews empirical research on the instability of complex interbank systems. Three network approaches are distinguished: descriptions of interbank exposure networks; simulation and modelling; and the development of new metrics to describe network topology and individual banks’ relative importance. The paper concludes by inferring policy implications and priorities for future research.

Keywords

Systemic Risk Credit Default Swap Eigenvector Centrality Geodesic Path Interbank Market 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  1. 1.European Central BankFrankfurtGermany
  2. 2.Bank of EnglandLondonUK
  3. 3.Financial Network Analytics Ltd.LondonUK

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