Ranking systemic risks in bank networks

作者: J. Leon Zhao , Zhimin Hua , Daning Hu

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摘要: The recent global financial tsunami (2007 – present) has swiped the whole world with disastrous consequences, leading to bankruptcy of major banks, trillions dollars in economic rescues, and national failures. Unlike previous crisis, one driver this crisis is contagious failures banks through a network interbank payments correlated bank portfolios products. risk that failure single can cause cascading other connected may potentially bring down entire banking system (network), defined as systemic risk. Existing management research focused on causes impacts but largely ignored monitoring preventive mechanism. In study, we developed network-based algorithm rank products network. addition, extended model adopted evaluation experiment our proposed algorithm. This provide an effective mechanism for stakeholders industry monitor reduce thereby prevent system-wide breakdown networks.

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