Systemic Risk in the Interbank Market with Overlapping Portfolios

Figure 4

(a) The evolutionary process of a bank with negative initial value of ownership, but it eventually can run a stable operation. (b) The evolutionary process of a bank with positive initial value of ownership, and it finally goes bankrupt. The parameters are set as , , , , , , , , , , , , , , and .

(a)

(b)