Transmission of distress in a bank credit network

Details Transmission of distress in a bank credit network Transmission of distress in a bank credit network

2012-04-25

arxiv.org/abs/1204.5661v1

Economy

Quantitative Finance

General Finance

Scientific paper

The European sovereign debt crisis has impaired many European banks. The distress on the European banks may transmit worldwide, and result in a large-scale knock-on default of financial institutions. This study presents a computer simulation model to analyze the risk of insolvency of banks and defaults in a bank credit network. Simulation experiments reproduce the knock-on default, and quantify the impact which is imposed on the number of bank defaults by heterogeneity of the bank credit network, the equity capital ratio of banks, and the capital surcharge on big banks.

Affiliated with

Also associated with

No associations

Rating

Transmission of distress in a bank credit network does not yet have a rating. At this time, there are no reviews or comments for this scientific paper.

If you have personal experience with Transmission of distress in a bank credit network, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Transmission of distress in a bank credit network will most certainly appreciate the feedback.

Rate now

Comments { 0 }

Profile ID: LFWR-SCP-O-138866