This paper tests financial contagion due to interbank linkages. For identification we exploit an idiosyncratic, sudden … contagion is higher for banks with weaker fundamentals. Third, interbank linkages among surviving banks further propagate the … linkages act as an important channel of contagion and hold important policy implications. …

the tools of network analysis it is possible to study how contagion spreads between banks and what is the probability and … impact on contagion probability than real shocks that, however, are long lasting. Additionally I find that monetary policy …

greater need for risk sharing, though, increases the risk of cross-border contagion and the likelihood of widespread banking … crises. However, even though integration increases the risk of contagion it improves welfare if it permits banks to realize …

model allows for taking a more holistic approach to interbank contagion than is standard in the literature. A key finding of … account that banks are related to each other in various market segments. The contagion effects when considering the shock … propagation simultaneously across multiple layers of interbank networks can be substantially larger than the sum of the contagion …