European Parliament Library

Balance Sheet Network Analysis of Too-Connected-to-Fail Risk in Global and Domestic Banking Systems, Jorge Chan-Lau

Abstract
The 2008/9 financial crisis highlighted the importance of evaluating vulnerabilities owing to interconnectedness, or Too-Connected-to-Fail risk, among financial institutions for country monitoring, financial surveillance, investment analysis and risk management purposes. This paper illustrates the use of balance sheet-based network analysis to evaluate interconnectedness risk, under extreme adverse scenarios, in banking systems in mature and emerging market countries, and between individual banks in Chile, an advanced emerging market economy
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Too-Connected-to-Fail Risk; II. Balance Sheet-Based Network Analysis; Figure 1. A digraph representation of a banking system; A. The Basic Accounting Identity; Figure 2. A simplified bank balance sheet; B. Credit Shocks; Figure 3. Credit shock; C. Funding Shocks; Figure 4. Funding shock under normal market conditions; Figure 5. Funding shock under stressed market conditions; D. Risk Transfer Shocks and Off-Balance Sheet Exposures; Figure 6. Risk transfer shock; III. Balance Sheet-Based Network Analysis in Practice
Language
eng
Literary Form
non fiction
Note
"April 2010."
Physical Description
1 online resource (44 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781462333547

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