Interbank Markets and Multiplex Networks: Centrality Measures and Statistical Null Models

  • Leonardo BargigliEmail author
  • Giovanni di Iasio
  • Luigi Infante
  • Fabrizio Lillo
  • Federico Pierobon
Part of the Understanding Complex Systems book series (UCS)


The interbank market is considered one of the most important channels of financial contagion. Its network representation, where banks and claims/obligations are represented by nodes and links (respectively), has received a lot of attention in the recent theoretical and empirical literature, for assessing systemic risk and identifying systemically important financial institutions. Different types of links, for example in terms of maturity and collateralization of the claim/obligation, can be established between financial institutions. Therefore a natural representation of the interbank structure which takes into account more features of the market, is a multiplex, where each layer is associated with a type of link. In this paper we review the empirical structure of the multiplex and the theoretical consequences of this representation. We also investigate the betweenness and eigenvector centrality of a bank in the network, comparing its centrality properties across different layers and with Maximum Entropy null models.


Centrality Measure Systemic Risk Betweenness Centrality Eigenvector Centrality Bank Size 
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.



The views expressed in the article are those of the authors only and do not involve the responsibility of the Bank of Italy. This paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB. The research leading to these results has received funding from the European Union, Seventh Framework Programme FP7/2007–2013 under grant agreement CRISIS-ICT-2011-288501 and from the INET-funded grant “New tools in Credit Network Modeling with Heterogeneous Agents”. L. Infante contributed while visiting the NYU Department of Economics.


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Copyright information

© Springer International Publishing Switzerland 2016

Authors and Affiliations

  • Leonardo Bargigli
    • 1
    Email author
  • Giovanni di Iasio
    • 2
  • Luigi Infante
    • 2
  • Fabrizio Lillo
    • 3
  • Federico Pierobon
    • 4
  1. 1.Dipartimento di Scienze per l’Economia e l’ImpresaUniversitá di FirenzeFirenzeItaly
  2. 2.Directorate General for Economics, Statistics and Research Bank of ItalyRomeItaly
  3. 3.Scuola Normale SuperiorePisaItaly
  4. 4.European Central BankFrankfurt am MainGermany

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