The Research of Bankruptcies’ Succession by Systemic Risk Index

  • Morito HashimotoEmail author
  • Setsuya Kurahashi
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 10247)


To lower the risk of a chain reaction of bank failures, active studies of fund transaction networks that are related to systemic risks have been conducted globally, and they are centered in Europe. In this study, we propose a new systemic risk index that reduces the risk of a chain reaction of failures at minimum cost by building a model of interbank fund transaction networks. This model’s structure has as its basis on the Erdos-Renyi network and considers the network’s characteristics. Our verification, using an agent-based modeling method, confirms that financial assistance given to stop chain reaction failures could increase the possibility of a chain reaction and that the systemic risk index can be used as a reference to determine financial institutions that should be given financial assistance.


Agent-based modeling Systemic risk Network theory Interbank transaction 


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Copyright information

© Springer International Publishing AG 2017

Authors and Affiliations

  1. 1.Business ScienceTsukuba UniversityTokyoJapan

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