explicitly takes into account the crisis state of the world. This allows us to model the network formation decision as optimising …

this method they provide a community description of the Japanese bank-firm credit network, getting evidence of a … to answer the following question: how do we find densely connected subsets of nodes within a credit network? The question … is relevant for policy, since these subsets are likely to channel any shock affecting the network. As it turns out, a …

This study investigates the amount of liquidity that is necessary to settle a given network of financial obligations … a flow network technique to investigate how the interconnected feature could affect the required liquidity. Our main … fundamental perspective of how a hub or other network structures affect the required liquidity. We further investigate the …

reproduces dynamics similar to those of the 2007-09 financial crisis and shows how bank losses and failures arise from network … has reduced its likelihood of bank failures through network contagion and illiquidity, given a similar stress scenario … risk exposures. However, most use highly stylized network models and reconstruction methods with global optimality lending …

. Second, higher bank capital requirements may aggravate contagion since they may incentivise banks to hold similar assets, and …

We examine the role of macroeconomic fluctuations, asset market liquidity, and network structure in determining … contagion and aggregate losses in a financial system. Systemic instability is explored in a financial network comprising three … ; Network models ; Systemic risk …

banking system to the financial system network. The results have implications for the capital regulation of financial …