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Related papers: Multichannel Contagion vs Stabilisation in Multipl…

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Modelling of contagion in interbank networks is discussed. A model taking into account bow-tie structure and dissasortativity of interbank networks is developed. The model is shown to provide a good quantitative description of the Russian…

Physics and Society · Physics 2014-10-02 A. V. Leonidov , E. L. Rumyantsev

The current global financial system forms a highly interconnected network where a default in one of its nodes can propagate to many other nodes, causing a catastrophic avalanche effect. In this paper we consider the problem of reducing the…

Optimization and Control · Mathematics 2022-07-05 Giuseppe Calafiore , Giulia Fracastoro , Anton V. Proskurnikov

We consider a model of financial contagion in a bipartite network of assets and banks recently introduced in the literature, and we study the effect of power law distributions of degree and balance-sheet size on the stability of the system.…

General Finance · Quantitative Finance 2017-04-25 Opeoluwa Banwo , Fabio Caccioli , Paul Harrald , Francesca Medda

Social interactions are stratified in multiple contexts and are subject to complex temporal dynamics. The systematic study of these two features of social systems has started only very recently mainly thanks to the development of multiplex…

Physics and Society · Physics 2018-12-12 Quan-Hui Liu , Xinyue Xiong , Qian Zhang , Nicola Perra

Determining design principles that boost robustness of interdependent networks is a fundamental question of engineering, economics, and biology. It is known that maximizing the degree correlation between replicas of the same node leads to…

Physics and Society · Physics 2019-08-21 Ivan Kryven , Ginestra Bianconi

Multilayer networks have been found to be prone to abrupt cascading failures under random and targeted attacks, but most of the targeting algorithms proposed so far have been mainly tested on uncorrelated systems. Here we show that the size…

Physics and Society · Physics 2020-07-23 Andrea Santoro , Vincenzo Nicosia

We study synchronization of $N$ oscillators indirectly coupled through a medium which is inhomogeneous and has its own dynamics. The system is formalized in terms of a multilayer network, where the top layer is made of disconnected…

Chaotic Dynamics · Physics 2015-04-24 Lucia Valentina Gambuzza , Mattia Frasca , Jesus Gomez-Gardeñes

A simple banking network model is proposed which features multiple waves of bank defaults and is analytically solvable in the limiting case of an infinitely large homogeneous network. The model is a collection of nodes representing…

Risk Management · Quantitative Finance 2012-04-02 Igor Tsatskis

The financial crisis has dramatically demonstrated that the traditional approach to apply univariate monetary risk measures to single institutions does not capture sufficiently the perilous systemic risk that is generated by the…

Mathematical Finance · Quantitative Finance 2015-04-27 Francesca Biagini , Jean-Pierre Fouque , Marco Frittelli , Thilo Meyer-Brandis

What do societies, the Internet, and the human brain have in common? They are all examples of complex relational systems, whose emerging behaviours are largely determined by the non-trivial networks of interactions among their constituents,…

Physics and Society · Physics 2017-04-18 Federico Battiston , Vincenzo Nicosia , Vito Latora

The structure of many real-world systems is best captured by networks consisting of several interaction layers. Understanding how a multi-layered structure of connections affects the synchronization properties of dynamical systems evolving…

Physics and Society · Physics 2016-11-17 Charo I. del Genio , Jesús Gómez-Gardeñes , Ivan Bonamassa , Stefano Boccaletti

We propose a novel class of separable multilayer network models to capture cross-layer dependencies in multilayer networks, enabling the analysis of how interactions in one or more layers may influence interactions in other layers. Our…

Statistics Theory · Mathematics 2025-01-10 Jiaheng Li , Jonathan R. Stewart

A probabilistic framework is introduced that represents stylized banking networks and aims to predict the size of contagion events. In contrast to previous work on random financial networks, which assumes independent connections between…

General Finance · Quantitative Finance 2011-10-20 Thomas R. Hurd , James P. Gleeson

The paradigm of layered networks is used to describe many real-world systems -- from biological networks, to social organizations and transportation systems. Recently there has been much progress in understanding the general properties of…

Physics and Society · Physics 2016-10-05 Márton Pósfai , Jianxi Gao , Sean P. Cornelius , Albert-László Barabási , Raissa M. D'Souza

Assessing the stability of economic systems is a fundamental research focus in economics, that has become increasingly interdisciplinary in the currently troubled economic situation. In particular, much attention has been devoted to the…

Risk Management · Quantitative Finance 2017-02-24 Matteo Serri , Guido Caldarelli , Giulio Cimini

The financial market is a complex dynamical system composed of a large variety of intricate relationships between several entities, such as banks, corporations and institutions. At the heart of the system lies the stock exchange mechanism,…

We reveal large fluctuations in the response of real multiplex networks to random damage of nodes. These results indicate that the average response to random damage, traditionally considered in mean-field approaches to percolation, is a…

Physics and Society · Physics 2018-12-26 Francesco Coghi , Filippo Radicchi , Ginestra Bianconi

We address the joint detection-and-attribution problem in cross-border financial contagion through a two-stage framework. The first stage applies wavelet-quantile transfer entropy across time-scales and lower, median, and upper-tail…

General Economics · Economics 2026-04-30 Avishek Bhandari , Ipsita Parida , Hitesh Kumar Sahu

Interbank lending and borrowing occur when financial institutions seek to settle and refinance their mutual positions over time and circumstances. This interactive process involves money creation at the aggregate level. Coordination…

General Finance · Quantitative Finance 2021-09-27 Yuri Biondi , Feng Zhou

The 2008 financial crisis exposed fundamental vulnerabilities in interconnected banking systems, yet existing frameworks fail to integrate spatial propagation with network contagion mechanisms. This paper develops a unified spatial-network…

Risk Management · Quantitative Finance 2025-11-13 Tatsuru Kikuchi