Financial interbanking networks resilience under shocks propagation

Abstract

The concept of resilience-i.e., the ability of a unified structure to absorb shocks-is of high relevance in the context of network modelling and analysis, mainly when referred to finance. This paper starts from this premise, and deals with the resilience of a financial interbanking system. At this aim, we firstly introduce a new measure of the resilience of a network, by taking into full consideration the influence of the topology of the network and the weights of its links in the shocks propagation; then, we build one financial network model related to the quarterly-based interbanking sector, whose weights are calibrated on high quality empirical data; lastly, we compute the resilience measure of the considered networks. A discussion of the results is provided, by considering both finance and network theory perspectives.

Clustering networked funded European research activities through rank-size laws

“…In this context, the research actions funded by the European Union represent a relevant, high-quality instance for a clear view of such scientific interrelations and their evolution over time(Bastidon & Parent, 2022 ; Cerqueti et al, 2022 ; Cinelli et al, 2021 ).…”

“…Complex networks tools can be significant in revealing complex systems’ underlying structure and organization, which can be evaluated with quantitative measures. This explains the popularity of complex networks for modelling purposes in contexts like social network(Borgatti & Everett, 2006 ; Scott & Carrington, 2011 ), but also significantly in finance(Bastidon & Parent, 2022 ; Boginski et al, 2006 ; Cerqueti et al, 2021 , 2022 ; Cinelli et al, 2021 ; Yan & Qi, 2021 ; Zhu et al, 2018 ), or healthcare and physiology (Butenko & Wilhelm, 2006 ; Vieira et al, 2010 ) and even for the understanding of the historical patterns (Pablo-Martí et al, 2021 ).…”