The severity and longevity of the recession caused by the 2007 financial crisis has
highlighted the lack of a reliable macro-based financial regulation framework. As a …

Network models of interbank exposures allow the mapping of the complex web of financial
linkages among many institutions and address issues of system stability and contagion risk …

Researchers increasingly turn to counterfactual simulations to estimate the danger of
contagion owing to exposures in the interbank loan market. This paper summarises the …

The increasing frequency and scope of financial crises have made global financial stability
one of the major concerns of economic policy and decision makers. This has led to the …

I discuss a network of banks which are linked with each other by financial obligations and
cross holdings. Given an initial endowment the value of the obligations and the equity …

Following the popularity of the concepts of “too big to fail” and “too connected to fail” after the
global financial crisis, the concept of “too central to fail” has garnered considerable attention …

Over recent years a number of network models of interbank markets have been developed
and applied to the analysis of insolvency contagion and systemic risk. In this chapter we …

Abstract The Bank's July 2006 Financial Stability Report (FSR) included a new approach to
assessing risks to the stability of the UK financial system. This paper explains the …

The purpose of this paper is to analyze (hypothetical) contagious bank defaults, ie defaults
not caused by the fundamental weakness of a given bank but triggered by failures in the …

The global financial crisis of 2007–09 has illustrated the importance of including funding
liquidity feedbacks in any model of systemic risk. This paper illustrates how we have …