contagion depends on the precise pattern of interbank linkages. We use balance sheet information to estimate the matrix of … contagion. We find that the financial safety net (institutional guarantees for saving banks and cooperative banks) considerably … reduces - but does not eliminate - the danger of contagion. Even so, the failure of a single bank could lead to the breakdown …

system to interbank contagion. Third, the more concentrated assets are within a money center model, the less stable it is …

this mechanism, fire sales can lead to contagion, and one failing bank can cause several more to follow suit. …

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. …

This paper examines common regulation as cause of interbank contagion. Studies based on the correlation of bank assets … and the extent of interbank lending may underestimate the likelihood of contagion because they do not incorporate the fact …

contagion only occurs if the correlation between the portfolios of banks is high enough. Without deposit insurance contagious … bank runs can impose such great losses on banks, that banks choose less correlated portfolios to avoid contagion altogether …