Abstract and Keywords
This chapter introduces the concept of financial networks and reviews research in three of the most active research areas of financial systems: interbank payment networks, interbank exposure networks, and asset correlation networks. The financial crisis of 2007-2008 revealed the intertwined nature of modern financial systems. A promising methodology for capturing and modeling connections in the financial system is provided by network theory. The intricate structure of linkages between financial institutions, among sectors of the economy, and across financial systems can conveniently be captured by using a network representation. Empirical research on describing existing networks is presented, as well as new modeling and simulation approaches for financial risk that take into account the complex structure of financial markets and infrastructures.
Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.
If you have purchased a print title that contains an access token, please see the token for information about how to register your code.