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By applying network analysis techniques to large input-output system, we identify key sectors in the local/regional economy. We overcome the limitations of traditional measures of centrality by using random-walk based measures, as an…

General Economics · Economics 2022-09-30 Fernando DePaolis , Phil Murphy , M. Clara DePaolis Kaluza

Betweeness centrality is one of the most important concepts in graph analysis. It was recently extended to link streams, a graph generalization where links arrive over time. However, its computation raises non-trivial issues, due in…

Data Structures and Algorithms · Computer Science 2023-11-27 Frédéric Simard , Clémence Magnien , Matthieu Latapy

A novel network-based approach is introduced to analyze banking systems, focusing on two main themes: identifying influential nodes within global banking networks using Bank for International Settlements data and developing an algorithm to…

Social and Information Networks · Computer Science 2025-03-12 Anthony Bonato , Juan Chavez Palan , Adam Szava

During major power system disturbances, when multiple component outages occur in rapid succession, it becomes crucial to quickly identify the transmission interconnections that have limited power transfer capability. Understanding the…

Systems and Control · Electrical Eng. & Systems 2020-08-04 Reetam Sen Biswas , Anamitra Pal , Trevor Werho , Vijay Vittal

Complex non-linear interactions between banks and assets we model by two time-dependent Erd\H{o}s Renyi network models where each node, representing bank, can invest either to a single asset (model I) or multiple assets (model II). We use…

Risk Management · Quantitative Finance 2015-06-19 B. Podobnik , D. Horvatic , M. Bertella , L. Feng , X. Huang , B. Li

A fundamental problem in the study of networks is the identification of important nodes. This is typically achieved using centrality metrics, which rank nodes in terms of their position in the network. This approach works well for static…

Computational Engineering, Finance, and Science · Computer Science 2022-10-19 Isobel Seabrook , Paolo Barucca , Fabio Caccioli

Interbank contagion can theoretically exacerbate losses in a financial system and lead to additional cascade defaults during downturn. In this paper we produce default analysis using both regression and neural network models to verify…

Risk Management · Quantitative Finance 2020-05-29 Riccardo Doyle

The econophysics approach to socio-economic systems is based on the assumption of their complexity. Such assumption inevitably lead to another assumption, namely that underlying interconnections within socio-economic systems, particularly…

Statistical Finance · Quantitative Finance 2023-07-19 Paweł Fiedor

Data reflecting social and business relations has often form of network of connections between entities (called social network). In such network important and influential users can be identified as well as groups of strongly connected…

Social and Information Networks · Computer Science 2013-08-26 Bogdan Gliwa , Anna Zygmunt , Stanisław Podgórski

The inability to see and quantify systemic financial risk comes at an immense social cost. Systemic risk in the financial system arises to a large extent as a consequence of the interconnectedness of its institutions, which are linked…

An interbank market lets participants pool the risk arising from the combination of illiquid investments and random withdrawals by depositors. But it also creates the potential for one bank's failure to trigger off avalanches of further…

Disordered Systems and Neural Networks · Physics 2009-11-07 Giulia Iori , Saqib Jafarey

We develop a network reconstruction model based on entropy maximization considering the sparsity of networks. We reconstruct the interbank network in Japan from financial data in individual banks' balance sheets using the developed…

General Economics · Economics 2021-07-09 Yuichi Ikeda , Hidetoshi Takeda

Central banks increasingly use social media to communicate beyond financial markets, yet evidence on public engagement effectiveness remains limited. Despite 113 central banks joining Twitter between 2008 and 2018, we lack understanding of…

General Economics · Economics 2025-06-04 Fatih Kansoy , Joel Mundy

We propose a new model of the liquidity driven banking system focusing on overnight interbank loans. This significant branch of the interbank market is commonly neglected in the banking system modeling and systemic risk analysis. We…

Economics · Quantitative Finance 2016-03-17 Paweł Smaga , Mateusz Wiliński , Piotr Ochnicki , Piotr Arendarski , Tomasz Gubiec

Corporations across the world are highly interconnected in a large global network of corporate control. This paper investigates the global board interlock network, covering 400,000 firms linked through 1,700,000 edges representing shared…

Social and Information Networks · Computer Science 2017-03-27 Frank W. Takes , Eelke M. Heemskerk

Knowledge graphs play a central role for linking different data which leads to multiple layers. Thus, they are widely used in big data integration, especially for connecting data from different domains. Few studies have investigated the…

Social and Information Networks · Computer Science 2022-03-18 Jens Dörpinghaus , Vera Weil , Carsten Düing , Martin W. Sommer

Recent advancements in Large Language Models (LLMs) have the potential to transform financial analytics by integrating numerical and textual data. However, challenges such as insufficient context when fusing multimodal information and the…

Computational Finance · Quantitative Finance 2024-11-14 Hoyoung Lee , Youngsoo Choi , Yuhee Kwon

The MBTI personality test and a personal facebook network were used in order to gain some insights on the relationship of social network centrality and path length measures and different personality types. Although the personality…

Social and Information Networks · Computer Science 2014-06-17 Mylonas Charilaos

This systemic risk paper introduces inhomogeneous random financial networks (IRFNs). Such models are intended to describe parts, or the entirety, of a highly heterogeneous network of banks and their interconnections, in the global financial…

General Finance · Quantitative Finance 2019-09-23 T. R. Hurd

Macroeconomic indexes are of high importance for banks: many risk-control decisions utilize these indexes. A typical workflow of these indexes evaluation is costly and protracted, with a lag between the actual date and available index being…

Statistical Finance · Quantitative Finance 2021-12-30 Maria Begicheva , Alexey Zaytsev