Balance Sheet Network Analysis of Too-Connected-to-Fail Risk in Global and Domestic Banking Systems

Balance Sheet Network Analysis of Too-Connected-to-Fail Risk in Global and Domestic Banking Systems PDF Author: Mr.Jorge A. Chan-Lau
Publisher: International Monetary Fund
ISBN: 1455200662
Category : Business & Economics
Languages : en
Pages : 27

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Book Description
The 2008/9 financial crisis highlighted the importance of evaluating vulnerabilities owing to interconnectedness, or Too-Connected-to-Fail risk, among financial institutions for country monitoring, financial surveillance, investment analysis and risk management purposes. This paper illustrates the use of balance sheet-based network analysis to evaluate interconnectedness risk, under extreme adverse scenarios, in banking systems in mature and emerging market countries, and between individual banks in Chile, an advanced emerging market economy.