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The global crisis of 2008 provoked a heightened interest among scientists to study the phenomenon, its propagation and negative consequences. The process of modelling the spread of a virus is commonly used in epidemiology. Conceptually, the…

物理与社会 · 物理学 2019-08-12 Olena Kostylenko , Helena Sofia Rodrigues , Delfim F. M. Torres

This paper investigates two mechanisms of financial contagion that are, firstly, the correlated exposure of banks to the same source of risk, and secondly the direct exposure of banks in the interbank market. It will consider a random…

计算金融 · 定量金融 2016-03-15 Seyyed Mostafa Mousavi , Robert Mackay , Alistair Tucker

Accurately defining, measuring and mitigating risk is a cornerstone of financial risk management, especially in the presence of financial contagion. Traditional correlation-based risk assessment methods often struggle under volatile market…

风险管理 · 定量金融 2024-02-12 Katerina Rigana , Ernst C. Wit , Samantha Cook

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

In this paper, we introduce an impact centrality measure to evaluate shock propagation on financial networks capturing a notion of contagion and systemic risk contributions, permitting comparisons of these risks over time. In addition, we…

数理金融 · 定量金融 2025-02-06 Agathe Sadeghi , Zachary Feinstein

Many new models for measuring financial contagion have been presented recently. While these models have not been specified for investment funds directly, there are many similarities that could be explored to extend the models. In this work…

风险管理 · 定量金融 2016-03-14 Leonardo dos Santos Pinheiro , Flavio Codeco Coelho

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

Systemic liquidity risk, defined by the IMF as "the risk of simultaneous liquidity difficulties at multiple financial institutions", is a key topic in macroprudential policy and financial stress analysis. Specialized models to simulate…

风险管理 · 定量金融 2021-12-08 V. Macchiati , G. Brandi , G. Cimini , G. Caldarelli , D. Paolotti , T. Di Matteo

Using data from a sample of 28 representatives countries, we propose a classification of currency crises consequences based on the ultrametric analysis of the real exchange rate movements time series, without any further assumption. By…

数据分析、统计与概率 · 物理学 2008-12-02 Guillermo J. Ortega , David Matesanz

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

Based on an empirical analysis of the network structure of the Austrian inter-bank market, we study the flow of funds through the banking network following exogenous shocks to the system. These shocks are implemented by stochastic changes…

其他凝聚态物理 · 物理学 2008-12-02 Michael Boss , Martin Summer , Stefan Thurner

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

Common asset holdings are widely believed to have been the primary vector of contagion in the recent financial crisis. We develop a network approach to the amplification of financial contagion due to the combination of overlapping…

综合金融 · 定量金融 2012-11-06 Fabio Caccioli , Munik Shrestha , Cristopher Moore , J. Doyne Farmer

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…

风险管理 · 定量金融 2016-08-30 Gabriele Visentin , Stefano Battiston , Marco D'Errico

We develop a structural default model for interconnected financial institutions in a probabilistic framework. For all possible network structures we characterize the joint default distribution of the system using Bayesian network…

风险管理 · 定量金融 2018-07-02 Carsten Chong , Claudia Klüppelberg

One of the most defining features of the global financial network is its inherent complex and intertwined structure. From the perspective of systemic risk it is important to understand the influence of this network structure on default…

风险管理 · 定量金融 2019-12-11 Nils Detering , Thilo Meyer-Brandis , Konstantinos Panagiotou , Daniel Ritter

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

Threats on the stability of a financial system may severely affect the functioning of the entire economy, and thus considerable emphasis is placed on the analyzing the cause and effect of such threats. The financial crisis in the current…

风险管理 · 定量金融 2014-10-28 Piotr Berman , Bhaskar DasGupta , Lakshmi Kaligounder , Marek Karpinski

This paper proposes an empirical test of financial contagion in European equity markets during the tumultuous period of 2008-2011. Our analysis shows that traditional GARCH and Gaussian stochastic-volatility models are unable to explain two…

统计金融 · 定量金融 2012-03-28 Nicholas G. Polson , James G. Scott

This chapter reviews key contributions of complexity science to the study of systemic risk in financial systems. The focus is on network models of financial contagion, where I explore various mechanisms of shock propagation, such as…

物理与社会 · 物理学 2025-02-21 Fabio Caccioli
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