Fecht, Falko; Grüner, Hans Peter - Deutsche Bundesbank - 2005
systems given that integration is restricted to the interbank market. Based on Allen and Gale (2000)'s seminal analysis of … financial contagion we derive the interbank market structure that maximizes consumers' ex-ante expected utility, i.e. that … interbank market that allows for a cross-regional risk sharing between banks. We also provide a measure for the efficiency …