Table 1: Notations for the equilibrium model.

NotationsDescription

The number of banks in the interbank market

Trust network in the interbank market

Credit network in the interbank market

A bank with liquidity surplus,

A bank with liquidity shortage,

The trust level of bank to bank ,

The value of the trust level for bank , , and are constants,

The scale of liquidity surplus of bank

The scale of liquidity shortage of bank

The scale of credit lending of bank from bank

The lending rate of bank

The borrowing rate of bank

The interest rate for the credit lending ,

The opportunity cost of bank for the credit lending ,

The risk faced by bank for the credit lending ,

The borrowing cost of bank for the credit lending ,