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In this paper we consider a multivariate model-based approach to measure the dynamic evolution of tail risk interdependence among US banks, financial services and insurance sectors. To deeply investigate the risk contribution of insurers we…

Risk Management · Quantitative Finance 2014-04-17 M. Bernardi , L. Petrella

In recent years, methods from network science are gaining rapidly interest in economics and finance. A reason for this is that in a globalized world the interconnectedness among economic and financial entities are crucial to understand and…

Networks of financial exposures are the key propagators of risk and distress among banks, but their empirical structure is not publicly available because of confidentiality. This limitation has triggered the development of methods of…

Risk Management · Quantitative Finance 2024-08-07 Valentina Macchiati , Piero Mazzarisi , Diego Garlaschelli

Economic and financial networks play a crucial role in various important processes, including economic integration, globalization, and financial crises. Of particular interest is understanding whether the temporal evolution of a real…

Physics and Society · Physics 2014-05-08 Tiziano Squartini , Diego Garlaschelli

The global financial system is highly complex, with cross-border interconnections and interdependencies. In this highly interconnected environment, local financial shocks and events can be easily amplified and turned into global events.…

Statistical Finance · Quantitative Finance 2021-04-22 Matthias Raddant , Dror Y. Kenett

The importance of adequately modeling credit risk has once again been highlighted in the recent financial crisis. Defaults tend to cluster around times of economic stress due to poor macro-economic conditions, {\em but also} by directly…

Risk Management · Quantitative Finance 2015-06-04 Sebastian Heise , Reimer Kuehn

Examining emotion interactions as an emotion network in social media offers key insights into human psychology, yet few studies have explored how fluctuations in such emotion network evolve during crises and normal times. This study…

Social and Information Networks · Computer Science 2025-10-30 Qianyun Wu , Orr Levy , Yoed N. Kenett , Yukie Sano , Hideki Takayasu , Shlomo Havlin , Misako Takayasu

In this paper we focus our attention on the exploitation of the information contained in financial news to enhance the performance of a classifier of bank distress. Such information should be analyzed and inserted into the predictive model…

Machine Learning · Statistics 2018-09-06 Paola Cerchiello , Giancarlo Nicola , Samuel Ronnqvist , Peter Sarlin

Drawing on recent contributions inferring financial interconnectedness from market data, our paper provides new insights on the evolution of the US financial industry over a long period of time by using several tools coming from network…

Physics and Society · Physics 2018-07-04 Yérali Gandica , Marco Valerio Geraci , Sophie Béreau , Jean-Yves Gnabo

Banking fraud causes billion-dollar losses for banks worldwide. In fraud detection, graphs help understand complex transaction patterns and discovering new fraud schemes. This work explores graph patterns in a real-world transaction dataset…

Social and Information Networks · Computer Science 2021-08-11 Xavier Fontes , David Aparício , Maria Inês Silva , Beatriz Malveiro , João Tiago Ascensão , Pedro Bizarro

Over the last two decades, financial systems have been studied and analysed from the perspective of complex networks, where the nodes and edges in the network represent the various financial components and the strengths of correlations…

Statistical Finance · Quantitative Finance 2021-02-02 Areejit Samal , Sunil Kumar , Yasharth Yadav , Anirban Chakraborti

Financial spillovers in interconnected systems, such as global banking networks, require tools that capture temporal and frequency dynamics, while incorporating the underlying network topology. While current network time series models are…

Methodology · Statistics 2026-04-07 Cristian F. Jiménez-Varón , Marina I. Knight

Many economic activities are embedded in networks: sets of agents and the (often) rivalrous relationships connecting them to one another. Input sourcing by firms, interbank lending, scientific research, and job search are four examples,…

Econometrics · Economics 2019-12-16 Bryan S. Graham

The field of Financial Networks is a paramount example of the novel applications of Statistical Physics that have made possible by the present data revolution. As the total value of the global financial market has vastly outgrown the value…

We propose a Bayesian nonparametric model including time-varying predictors in dynamic network inference. The model is applied to infer the dependence structure among financial markets during the global financial crisis, estimating effects…

Methodology · Statistics 2014-07-08 Daniele Durante , David B. Dunson

Weighted reciprocity between two agents can be defined as the minimum of sending and receiving value in their bilateral relationship. In financial networks, such reciprocity characterizes the importance of individual banks as both liquidity…

Computational Finance · Quantitative Finance 2024-12-16 Lutz Honvehlmann

How, and to what extent, does an interconnected financial system endogenously amplify external shocks? This paper attempts to reconcile some apparently different views emerged after the 2008 crisis regarding the nature and the relevance of…

Risk Management · Quantitative Finance 2016-08-30 Gabriele Visentin , Stefano Battiston , Marco D'Errico

The European sovereign debt crisis has impaired many European banks. The distress on the European banks may transmit worldwide, and result in a large-scale knock-on default of financial institutions. This study presents a computer…

Risk Management · Quantitative Finance 2013-07-19 Yoshiharu Maeno , Satoshi Morinaga , Hirokazu Matsushima , Kenichi Amagai

Dynamic network data have become ubiquitous in social network analysis, with new information becoming available that captures when friendships form, when corporate transactions happen and when countries interact with each other. Flexible…

Applications · Statistics 2023-05-16 Yunran Chen , Alexander Volfovsky

Using the secured transactions recorded within the Money Markets Statistical Reporting database of the European Central Bank, we test several stylized facts regarding interbank market of the 47 largest banks in the eurozone. We observe that…

General Economics · Economics 2024-10-22 Victor Le Coz , Nolwenn Allaire , Michael Benzaquen , Damien Challet
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