Ontology highlight
ABSTRACT:
SUBMITTER: Roukny T
PROVIDER: S-EPMC3783890 | biostudies-other | 2013
REPOSITORIES: biostudies-other
Roukny Tarik T Bersini Hugues H Pirotte Hugues H Caldarelli Guido G Battiston Stefano S
Scientific reports 20130926
The recent crisis has brought to the fore a crucial question that remains still open: what would be the optimal architecture of financial systems? We investigate the stability of several benchmark topologies in a simple default cascading dynamics in bank networks. We analyze the interplay of several crucial drivers, i.e., network topology, banks' capital ratios, market illiquidity, and random vs targeted shocks. We find that, in general, topology matters only--but substantially--when the market ...[more]