Montañez Jacquez, Samuel; Quezada Téllez, Luis Alberto; … - In: Risks : open access journal 14 (2026) 4, pp. 1-63
Systemic risk in banking systems arises from losses transmitted through networks of contractual exposures. Yet, most widely used measures rely on market-implied volatility and equity prices rather than structural balance sheet fragilities. This paper develops a flow network framework that models...