Liquidity-Switch Effect and Stability of Banking System

Paper presents a mechanism for measuring stability of banking system based on the default risk of nonbanking debtors and contagion potential of banks. The approach is tested on 1,000 randomized network topologies of 40 real banks. Banking system is treated as a complex system and stability is observed in terms of capacity to balance liquidity between banks as autonomous components of the system and nonbanking debtors. Two types of possible liquidity-flow switches are defi ned and tests performed for a potential of credit contagion. Tests are obtained by applying exogeneous-stable liquidity switches to the system. Mechanism sheds additional light to the systemic view of the banking system

MoreLess

Year of publication:	2013
Authors:	Steinbacher, Mitja
Other Persons:	Jagric, Timotej (contributor)
Publisher:	[2013]: [S.l.] : SSRN
Subject:	Bankenkrise \| Banking crisis \| Finanzsystem \| Financial system \| Bankrisiko \| Bank risk \| Bankenaufsicht \| Banking supervision \| Bank

freely available

Full text |

More access options

doi.org

Check Google Scholar

In German libraries (KVK)

I need help

Which error do you want to report?

Report: URL of this record is broken

Please note: Sometimes more than one URL is available for a resource. Please click on "More Options" to display these URLs

Report: Addition of an URL to that resource

Please note: Sometimes more than one URL is available for a resource. Please click on "More Options" to display these URLs

Report: The language(s) of that resource is/are…

Please note: Required language not in the list? Please use comment field

Report: Addition of an identifier to that resource

Report: report typo

Report: Add statement

Report: Add keywords

Please use the commentary box to describe other errors

Would you like to receive a feedback?

Commentary

Please type the code from the image

For general questions please use this address.

Persistent link: https://www.econbiz.de/10013073986