Mapping the Australian Banking System Network

An important aspect of the banking system is the network of exposures between individual financial institutions. Using regulatory data, this article maps the network of large bilateral exposures between Australian financial institutions and then analyses its basic features using the tools of network theory. Many of the features of the Australian network are consistent with those of financial networks in other countries. In particular, most institutions in the network are only linked to a small number of other institutions, while a few, typically larger, institutions are linked to a large number of other institutions. An understanding of the banking system network can assist in identifying contagion risks and assessing financial stability.