Balance Sheet Network Analysis of Too-Connected-to-Fail Risk in Global and Domestic Banking Systems
IMF Working Papers, April 1, 2010
Source details
- Canonical URL
- Balance Sheet Network Analysis of Too-Connected-to-Fail Risk in Global and Domestic Banking Systems
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Bibliographic details
- Authors: Jorge A Chan-Lau
- Published: April 1, 2010
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455200665.001
Summary
- 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.
Scope and Subject Matter
- Subject: Banking, Commercial banks, Credit, Foreign banks, Nonbank financial institutions
- Keywords: bank, banking system, financial institution, WP
- Geographic/application emphasis: global and domestic banking systems; specific application to individual banks in Chile.
Methodological approach (as described)
- Use of balance sheet-based network analysis to evaluate interconnectedness risk.
- Focus on evaluation under extreme adverse scenarios.
Use cases and audiences highlighted
- Country monitoring
- Financial surveillance
- Investment analysis
- Risk management
Access and format notes (as presented)
- Identified as an IMF Working Paper.
- Formats and related access options referenced (IMF eLibrary), with offers to download PDF and other formats.
IMF Working Papers — Balance Sheet Network Analysis of Too-Connected-to-Fail Risk in Global and Domestic Banking Systems (Jorge A Chan-Lau, April 1, 2010).