should be nowadays replaced with a network-oriented view. Closer insight into the concept of systemic risk can refer to the …Systemic risk is a fundamental constituent of contemporary financial systems. For the past decades a growing number of … external or internal impulses. This requires a paradigm shift in thinking about systemic risk. A component-oriented perspective …

of the causes of systematic risk and shows that (i) network exposures act as an inflating factor for systematic exposure …This paper extends the classic factor-based asset pricing model by including network linkages in linear factor models …. We assume that the network linkages are exogenously provided. This extension of the model allows a better understanding …

study liquidity reallocation in this interbank network using a novel dataset of all interbank loans settled between European …The euro area overnight interbank market is best described as a network of over-the-counter lending relationships. We … banks. We show the existence of a centrality premium when banks act as intermediaries of liquidity: banks with a one …

This study investigates the amount of liquidity that is necessary to settle a given network of financial obligations … a flow network technique to investigate how the interconnected feature could affect the required liquidity. Our main … fundamental perspective of how a hub or other network structures affect the required liquidity. We further investigate the …

network. We first provide a characterization of the unique equilibrium of banks' liquidity holdings for any network of credit … lines. Then, we endogenize the network and show that every equilibrium network is a complete coreperiphery graph. Central … accounting for banks' endogenous linking decisions, a narrower corridor may lead to a sparser interbank network with higher …

bankruptcy problems are characterized by network aspects and default may occur as a result of contagion. Indeed, in financial … on other agents can be collected. These network aspects make an axiomatic analysis challenging. This paper is the first …

health. In this paper, we propose a new directed network construct—the liquidity network—to capture the urgency to trade by …Network analysis has become a key framework in financial economics in understanding how interconnectedness among market … connecting the initiating party in a trade to the passive party. Alongside the conventional trading network connecting sellers to …

financial network into strongly connected components. A strongly connected component which contains more than one agent is …