sector, in a context of leverage targeting. Contagion can occur through direct interbank exposures, and indirect exposures … due to overlapping portfolios with the associated price dynamics via fire sales. We apply the framework to three granular … proprietary ECB datasets, including an interbank network of 26 large euro area banks as well as their overlapping portfolios of …

sector, in a context of leverage targeting. Contagion can occur through direct interbank exposures, and indirect exposures … due to overlapping portfolios with the associated price dynamics via fire sales. We apply the framework to three granular … proprietary ECB datasets, including an interbank network of 26 large euro area banks as well as their overlapping portfolios of …

We develop an agent-based model of traditional banks and asset managers to investigate the contagion risk related to … exacerbate contagion when their voluntary liquid buffers are fully utilised. Fourth, a system with larger and more interconnected … agents is more prone to contagion risk stemming from funding shocks. …