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Groups of enterprises guarantee each other and form complex guarantee networks when they try to obtain loans from banks. Such secured loan can enhance the solvency and promote the rapid growth in the economic upturn period. However,…

社会与信息网络 · 计算机科学 2020-05-14 Zhibin Niu , Dawei Cheng , Liqing Zhang , Jiawan Zhang

The aim of this paper is to quantify and manage systemic risk caused by default contagion in the interbank market. We model the market as a random directed network, where the vertices represent financial institutions and the weighted edges…

风险管理 · 定量金融 2021-01-18 Nils Detering , Thilo Meyer-Brandis , Konstantinos Panagiotou , Daniel Ritter

As impressively shown by the financial crisis in 2007/08, contagion effects in financial networks harbor a great threat for the stability of the entire system. Without sufficient capital requirements for banks and other financial…

风险管理 · 定量金融 2019-11-19 Daniel Ritter

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…

风险管理 · 定量金融 2015-06-04 Sebastian Heise , Reimer Kuehn

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…

风险管理 · 定量金融 2020-05-29 Riccardo Doyle

Supply chain disruptions constitute an often underestimated risk for financial stability. As in financial networks, systemic risks in production networks arises when the local failure of one firm impacts the production of others and might…

统计金融 · 定量金融 2025-02-25 Jan Fialkowski , Christian Diem , András Borsos , Stefan Thurner

This paper introduces a novel framework to study default dependence and systemic risk in a financial network that evolves over time. We analyse several indicators of risk, and develop a new latent space model to assess the health of key…

应用统计 · 统计学 2020-10-02 Laleh Tafakori , Armin Pourkhanali , Riccardo Rastelli

We propose a novel credit default model that takes into account the impact of macroeconomic information and contagion effect on the defaults of obligors. We use a set-valued Markov chain to model the default process, which is the set of all…

风险管理 · 定量金融 2018-08-31 Dianfa Chen , Jun Deng , Jianfen Feng , Bin Zou

The interconnectedness of financial institutions affects instability and credit crises. To quantify systemic risk we introduce here the PD model, a dynamic model that combines credit risk techniques with a contagion mechanism on the network…

计算金融 · 定量金融 2018-04-10 Daniele Petrone , Vito Latora

Networked-guarantee loans may cause the systemic risk related concern of the government and banks in China. The prediction of default of enterprise loans is a typical extremely imbalanced prediction problem, and the networked-guarantee make…

计算工程、金融与科学 · 计算机科学 2020-06-09 Dawei Cheng , Zhibin Niu , Yi Tu , Liqing Zhang

Propagation of balance-sheet or cash-flow insolvency across financial institutions may be modeled as a cascade process on a network representing their mutual exposures. We derive rigorous asymptotic results for the magnitude of contagion in…

风险管理 · 定量金融 2014-03-26 Hamed Amini , Rama Cont , Andreea Minca

The modeling of the probability of joint default or total number of defaults among the firms is one of the crucial problems to mitigate the credit risk since the default correlations significantly affect the portfolio loss distribution and…

风险管理 · 定量金融 2022-08-08 Puneet Pasricha , Dharmaraja Selvamuthu , Selvaraju Natarajan

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…

最优化与控制 · 数学 2022-07-05 Giuseppe Calafiore , Giulia Fracastoro , Anton V. Proskurnikov

Realistic credit risk assessment, the estimation of losses from counterparty's failure, is central for the financial stability. Credit risk models focus on the financial conditions of borrowers and only marginally consider other risks from…

统计金融 · 定量金融 2023-05-09 Zlata Tabachová , Christian Diem , András Borsos , Csaba Burger , Stefan Thurner

The 2008 financial crisis illustrated the need for a thorough, functional understanding of systemic risk in strongly interconnected financial structures. Dynamic processes on complex networks being intrinsically difficult, most recent…

综合金融 · 定量金融 2015-08-05 Matteo Smerlak , Brady Stoll , Agam Gupta , James S. Magdanz

In this paper we introduce a generalized extension of the Eisenberg-Noe model of financial contagion to allow for time dynamics of the interbank liabilities, including a dynamic examination of default risk. This framework separates the cash…

数理金融 · 定量金融 2024-06-28 Tathagata Banerjee , Alex Bernstein , Zachary Feinstein

It had been believed in the conventional practice that the risk of a bank going bankrupt is lessened in a straightforward manner by transferring the risk of loan defaults. But the failure of American International Group in 2008 posed a more…

风险管理 · 定量金融 2016-11-17 Yoshiharu Maeno , Kenji Nishiguchi , Satoshi Morinaga , Hirokazu Matsushima

The present paper provides a multi-period contagion model in the credit risk field. Our model is an extension of Davis and Lo's infectious default model. We consider an economy of n firms which may default directly or may be infected by…

风险管理 · 定量金融 2010-02-01 Didier Rullière , Diana Dorobantu , Areski Cousin

This work proposes an augmented variant of DebtRank with uncertainty intervals as a method to investigate and assess systemic risk in financial networks, in a context of incomplete data. The algorithm is tested against a default contagion…

风险管理 · 定量金融 2014-12-05 Stefano Gurciullo

We analyse the importance of international relations between countries on the financial stability. The contagion effect in the network is tested by implementing an epidemiological model, comprising a number of European countries and using…

物理与社会 · 物理学 2019-01-23 Olena Kostylenko , Helena Sofia Rodrigues , Delfim F. M. Torres
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