Gaffeo, Edoardo; gobbi, Lucio - Dipartimento di Economia e Management, Università … - 2015
The bilateral netting of mutual obligations is an institutional arrange- ment usually employed in payment systems to … recurring to computer simulations, we show that bilateral netting considerably reduce the potential for default cascades over an … hits the liability side of the balance sheet nÃÉas a run on deposits nÃÉthe role of a bilateral netting agreement in …