Finding the core: network structure in interbank markets

Authors
Publication date 2014
Journal Journal of Banking & Finance
Volume | Issue number 49
Pages (from-to) 27-40
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
Abstract This paper investigates the network structure of interbank markets. Using a dataset of interbank exposures in the Netherlands, we corroborate the recent hypothesis that the core periphery model is a ‘stylised fact’ of interbank markets. We find a core of highly connected banks intermediating between periphery banks and pay particular attention to model selection. Our analysis can help improve systemic risk assessments, especially as more granular data is becoming available.
Document type Article
Language English
Published at https://doi.org/10.1016/j.jbankfin.2014.08.006
Permalink to this page
Back