Frey, RĂ¼diger; Hledik, Juraj - In: Risks 6 (2018) 2, pp. 1-11
In this paper, we study the implications of diversification in the asset portfolios of banks for financial stability and systemic risk. Adding to the existing literature, we analyse this issue in a network model of the interbank market. We carry out a simulation study that determines the...