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When banks extend loans to each other, they generate a negative externality in the form of systemic risk. They create a network of interbank exposures by which they expose other banks to potential insolvency cascades. In this paper, we show…

Economics · Quantitative Finance 2017-06-26 Matt V. Leduc , Stefan Thurner

Banking system crises are complex events that in a short span of time can inflict extensive damage to banks themselves and to the external economy. The crisis literature has so far identified a number of distinct effects or channels that…

General Finance · Quantitative Finance 2017-11-16 T. R. Hurd

In this paper, we assess how the stability of financial networks is affected by interconnectedness considering its tiniest variation: the edge. We compute the impact of edges as the percentage difference in the systemic risk (SR) of the…

Statistical Mechanics · Physics 2025-10-06 Michel Alexandre , Thiago Christiano Silva , Francisco A. Rodrigues

We address a fundamental problem that is systematically encountered when modeling complex systems: the limitedness of the information available. In the case of economic and financial networks, privacy issues severely limit the information…

Physics and Society · Physics 2015-12-07 Giulio Cimini , Tiziano Squartini , Diego Garlaschelli , Andrea Gabrielli

A large variety of complex systems in ecology, climate science, biomedicine and engineering have been observed to exhibit tipping points, where the internal dynamical state of the system abruptly changes. For example, such critical…

Physics and Society · Physics 2015-03-06 Christian Kuehn , Erik A. Martens , Daniel Romero

Various spatiotemporal and network GARCH models have recently been proposed to capture volatility interactions, such as the transmission of market risk across financial networks. These approaches rely heavily on the specification of the…

Applications · Statistics 2026-03-03 Ariane N. Meli Chrisko , Jessie Li , Philipp Otto , Wolfgang Schmid

Large language models (LLMs) have shown strong reasoning capabilities and are increasingly explored for financial trading. Existing LLM-based trading agents, however, largely focus on single-step prediction and lack integrated mechanisms…

Multiagent Systems · Computer Science 2025-11-18 Bijia Liu , Ronghao Dang

Efficient and accurate incident prediction in spatio-temporal systems is critical to minimize service downtime and optimize performance. This work aims to utilize historic data to predict and diagnose incidents using spatio-temporal…

Machine Learning · Computer Science 2022-06-14 Shreshth Tuli , Matthew R. Wilkinson , Chris Kettell

Nonlinear dynamical systems exposed to changing forcing can exhibit catastrophic transitions between alternative and often markedly different states. The phenomenon of critical slowing down (CSD) can be used to anticipate such transitions…

Machine Learning · Computer Science 2024-09-13 Yu Huang , Sebastian Bathiany , Peter Ashwin , Niklas Boers

The regression of multiple inter-connected sequence data is a problem in various disciplines. Formally, we name the regression problem of multiple inter-connected data entities as the "dynamic network regression" in this paper. Within the…

Machine Learning · Computer Science 2020-10-19 Yixin Chen , Lin Meng , Jiawei Zhang

Financial markets can be seen as complex systems that are constantly evolving and sensitive to external disturbance, such as systemic risks and economic instabilities. Analysis of resilient market performance, therefore, becomes useful for…

General Finance · Quantitative Finance 2019-09-04 Junqing Tang , Hans R. Heinimann

Company financial risk is ubiquitous and early risk assessment for listed companies can avoid considerable losses. Traditional methods mainly focus on the financial statements of companies and lack the complex relationships among them.…

Machine Learning · Computer Science 2023-02-01 Wendong Bi , Bingbing Xu , Xiaoqian Sun , Zidong Wang , Huawei Shen , Xueqi Cheng

This note focuses on the optimization of neural architectures for stock index movement forecasting following a major market disruption or crisis. Given that such crises may introduce a shift in market dynamics, this study aims to…

Computational Engineering, Finance, and Science · Computer Science 2023-11-27 Faizal Hafiz , Jan Broekaert , Akshya Swain

Large digital platforms create environments where different types of user interactions are captured, these relationships offer a novel source of information for fraud detection problems. In this paper we propose a framework of relational…

Earthquake detection is essential for earthquake early warning (EEW) systems. Traditional methods struggle with low signal-to-noise ratios and single-station reliance, limiting their effectiveness. We propose a Spatio-Temporal Graph…

Machine Learning · Computer Science 2025-03-17 Suchanun Piriyasatit , Ercan Engin Kuruoglu , Mehmet Sinan Ozeren

Despite the widespread success of Graph Neural Networks (GNNs), understanding the reasons behind their specific predictions remains challenging. Existing explainability methods face a trade-off that gradient-based approaches are…

Machine Learning · Computer Science 2026-01-22 Bizu Feng , Zhimu Yang , Shaode Yu , Zixin Hu

Supply chains are integral to global economic stability, yet disruptions can swiftly propagate through interconnected networks, resulting in substantial economic impacts. Accurate and timely inference of supply chain resilience the…

Machine Learning · Computer Science 2025-12-05 Zetian Shen , Hongjun Wang , Jiyuan Chen , Xuan Song

This study investigates how financial market structure reorganizes during the COVID-19 crash using a conditional p-threshold mutual information (MI) based Minimum Spanning Tree (MST) framework. We analyze nonlinear dependencies among the…

Statistical Finance · Quantitative Finance 2026-01-05 Kundan Mukhia , Imran Ansari , S R Luwang , Md Nurujjaman

Although Graph Neural Networks (GNNs) have shown promising potential in fake news detection, they remain highly vulnerable to adversarial manipulations within social networks. Existing methods primarily establish connections between…

Social and Information Networks · Computer Science 2025-05-22 Xianghua Zeng , Hao Peng , Angsheng Li

Network models represent a useful tool to describe the complex set of financial relationships among heterogeneous firms in the system. In this paper, we propose a new semiparametric model for temporal multilayer causal networks with both…

Econometrics · Economics 2021-01-05 Billio Monica , Casarin Roberto , Costola Michele , Iacopini Matteo