We systematically analyse how network structure and bank characteristics affect solvency distress contagion risk in … interbank networks. As interbank networks become more connected and more regular in structure, the contagion risk of system … heterogeneous network structures that typify real interbank networks are particularly prone to solvency distress contagion risk …

An individual bank can put the whole banking system at risk if its losses in response to shocks push losses for the …

In this paper we construct and analyse the UK banking system’s Global Network of granular exposures which captures … roughly 90% of the UK banking system’s total assets for the period 2018 Q1 to 2021 Q4. We thus study the microstructure of UK … banking system focusing on the role played by concentration risk and interconnectedness across sectors. We then estimate the …

questions using a deliberately simplified, dynamical model of a banking system which combines three different channels for … direct spillovers from one bank to another: liquidity hoarding, asset price contagion, and the propagation of defaults via …

We study solvency contagion risk in the UK banking system from 2008 to 2015. We develop a model that only accounts for … show that risks due to solvency contagion decrease markedly from the peak of the crisis to the present, to the point of …

This paper develops an analytical model of contagion in financial networks with arbitrary structure. We explore how the … probability and potential impact of contagion is influenced by aggregate and idiosyncratic shocks, changes in network structure … probability of contagion may be low, the effects can be extremely widespread when problems occur. And we suggest why the …

contagion and aggregate losses in a stylised financial system. Systemic instability is explored in a financial network … to advanced country banking sector data, this preliminary model generates broadly sensible aggregate loss distributions …