BANKING NETWORKS AND LEVERAGE DEPENDENCE IN EMERGING COUNTRIES

摘要: We construct banking networks using bank-level balance sheet data from 2005 to 2010 five emerging countries: Argentina, Brazil, Mexico, South Africa, and Taiwan. The network interaction is based on the leverage ratio dependence between each pair of banks within a same country. Despite accounting rules heterogeneity, results are robust across countries. diversity produces financial with modular structure characterized by one large bank community, some small ones, isolated banks. However, these groups merge together creating topology that converges unique cluster at relatively low level. Finally, we simulate system through model corporate interbank loans credit shocks, where links arise due insufficient liquidity. yields leverage-based similar empirical ones. A prediction for banks’ growth presented tested in data.