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The Financial System as a Nexus of Interconnected Networks

  • Stefano BattistonEmail author
  • Guido Caldarelli
  • Marco D’Errico
Chapter
Part of the Understanding Complex Systems book series (UCS)

Abstract

In this Chapter, we describe the phenomenology of multilevel financial networks. Network analysis represents a useful tool for the analysis of financial systems, allowing, in particular, for a better understanding of the mechanics of systemic distress. However, the level of complexity reached by the financial system, coupled with the linkages arising to and from other economic sectors, calls for a more integrated approach that takes into account a whole series of networks. In this Chapter, we therefore describe the financial systems as a nexus of interconnected networks. By reviewing selected theoretical and empirical works and describing two methodological extensions for DebtRank, we show different arguments in favor of the adoption of a broader view of the network approach to finance.

Keywords

Balance Sheet Systemic Risk European Central Bank Credit Default Swap Capital Ratio 
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 International Publishing Switzerland 2016

Authors and Affiliations

  • Stefano Battiston
    • 1
    Email author
  • Guido Caldarelli
    • 2
    • 3
    • 4
  • Marco D’Errico
    • 1
  1. 1.Department of Banking and FinanceUniversity of ZürichZürichSwitzerland
  2. 2.IMT Alti Studi LuccaLuccaItaly
  3. 3.ISC-CNRRomeItaly
  4. 4.LIMSLondonUK

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