Network topography and default contagion in China's financial system

Konferenzbeitrag

The topography of China's financial network is unique. Is it also uniquely robust to contagion? We explore this question using network theory. We find that networks that are more concentrated are less fragile when connectivity is low. However, they remain vulnerable to the occurrence of large-scale default cascades at higher levels of connectivity than a decentralized network. We implement Chinese characteristics into our model and simulate it numerically. The simulations show, that the large state-controlled banks act as effective stopgaps for contagion, which makes the Chinese network relatively robust. This robustness persists even when a medium sized bank defaults.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2020: Gender Economics

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Financial Markets and the Macroeconomy
• Thema: Interbank Network ; Financial Contagion ; China's interbank market ; Financial market stability ; Complex networks ; Network topography

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Fittje, Jens ; Wagner, Helmut
• Ereignis: Veröffentlichung
• (wer): ZBW - Leibniz Information Centre for Economics
• (wo): Kiel, Hamburg
• (wann): 2020

Weitere Informationen

• Handle: http://hdl.handle.net/10419/224605
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ