Central clearing counterparties (CCPs) have a variety of economic rationales. The Great
Recession of 2007–2009 led regulators to mandate CCPs for most interest-rate and credit …

Central counterparties (CCPs) function as financial infrastructures for capital markets in
derivatives. They are designed to reduce aggregate counterparty credit risk. Although CCPs …

We develop a model in which margin procyclicality and the propensity for liquidity hoarding
interact to generate a systemic liquidity crisis. In this model, banks lend and borrow in the …

Purpose Drawing on social network and information diffusion theories, the authors study the
impact of the structural characteristics of a seller's local social network on her promotion …

This paper examines the role of collateral in the financial system, with special emphasis on
the implications for financial stability and the conduct of monetary policy. First, we review …

Fragmenting clearing across multiple central counterparties (CCPs) is costly because global
dealers cannot net positions across CCPs. They have to collateralize both the short position …

The extreme risks of banks not only cause losses to themselves but also bring external risks
to other financial institutions. Current research mainly focuses on the one-way risk spillover …

We propose a general framework for estimating the likelihood of default by central
counterparties (CCP) in derivatives markets. Unlike conventional stress testing approaches …

We consider financial networks where agents are linked to each other via mutual liabilities.
In case of bankruptcy, there are potentially many bankruptcy rules, ways to distribute the …

The banking crisis started in March 2023 was triggered by disproportion of deposit liability
and assets. Applying balance sheets from 1999 to 2022, from the Japanese Bank …