Complexity

Financial Networks


Status
Published

1Universidade Católica de Brasília, Brasília, Brazil

2Central Bank of Brazil, Brasília, Brazil

3Bilkent University, Ankara, Turkey


Financial Networks

Description

Financial networks have been on the research agenda since the financial crisis of 2008. Today, both regulators and the academia recognize that interconnectedness is a crucial component that had a key role in the amplification of losses in the last crisis. Therefore, understanding the structure of financial networks is important for assessing, monitoring, and regulating financial systems. In addition, it washed away the belief that supervising banks in an individual manner was sufficient to guarantee a safe financial system, as networks can largely amplify negative spillover effects. In this sense, we have seen an increasing effort in designing novel mechanisms for macroprudential regulation that include overseeing aspects of the entire financial system, including its structure.

Though understanding how financial networks amplify shocks is of uttermost importance for policymakers, especially for financial stability and systemic risk issues, the literature is still at its early stages in understanding the role of financial networks as a medium for shock amplification. This mainly occurs because modern financial networks are inherently complex to analyze as economic agents participate in a multiplex of interrelationships in several different markets.

Modeling this heterogeneity of interconnections stands as an important open problem because each connection can potentially create contagion transmission channels that can amplify losses. Another component that further increases the modeling complexity is that each risk channel that arises from this multiplex of interconnections is potentially dependent of each other and thus can additively increase systemic risk in nonlinear ways.

Alternative modeling that uses methods from chaos theory, genetic algorithms, cellular automata, neural networks, and evolutionary game theory that will study the behavior of financial networks or its components is welcome.

Complex networks evolve rapidly overtime and their topology changes substantially. Understanding this evolution and its impact on systemic risk and financial stability is an important research question. There are many gaps in the literature and we hope to address some of them within this call for papers. We look for papers that contribute to the debate on complexity and financial networks.

Potential topics include but are not limited to the following:

  • Financial stability
  • Systemic risk
  • Network prediction
  • Interdependent networks
  • Cross-system risk
  • Default contagion
  • Network topology
  • Endogenous financial networks
  • Investor networks
  • Collective behaviour
  • Network resilience
  • Bayesian dynamic financial networks
  • Financial regulation
  • Multiplex networks
  • Link prediction
  • Interbank connections
  • Systemic relevance
  • Bank supervision
  • Machine learning
  • Econometrics of networks
  • Agent based modeling
  • Chaos
  • Genetic algorithms
  • Cellular automata
  • Neural networks
  • Deep learning
  • Mean field theory
  • Evolutionary game theory

Articles

  • Special Issue
  • - Volume 2018
  • - Article ID 7802590
  • - Editorial

Financial Networks

Benjamin Miranda Tabak | Thiago Christiano Silva | Ahmet Sensoy
  • Special Issue
  • - Volume 2018
  • - Article ID 9434608
  • - Research Article

Optimal Payments to Connected Depositors in Turbulent Times: A Markov Chain Approach

Dávid Csercsik | Hubert János Kiss
  • Special Issue
  • - Volume 2018
  • - Article ID 1843792
  • - Research Article

Credit Risk Contagion in an Evolving Network Model Integrating Spillover Effects and Behavioral Interventions

Tingqiang Chen | Binqing Xiao | Haifei Liu
  • Special Issue
  • - Volume 2018
  • - Article ID 7619494
  • - Research Article

The Dynamic Cross-Correlations between Mass Media News, New Media News, and Stock Returns

Zuochao Zhang | Yongjie Zhang | ... | Wei Zhang
  • Special Issue
  • - Volume 2018
  • - Article ID 6248427
  • - Research Article

The Complexity of Social Capital: The Influence of Board and Ownership Interlocks on Implied Cost of Capital in an Emerging Market

Luciano Rossoni | Cezar Eduardo Aranha | Wesley Mendes-Da-Silva
  • Special Issue
  • - Volume 2018
  • - Article ID 8767836
  • - Research Article

The Assessment of Systemic Risk in the Kenyan Banking Sector

Hong Fan | Allan Alvin Lee Lukaya Amalia | Qian Qian Gao
  • Special Issue
  • - Volume 2018
  • - Article ID 4012163
  • - Research Article

The Application of Macroprudential Capital Requirements in Managing Systemic Risk

Hong Fan | Chirongo Moses Keregero | Qianqian Gao
  • Special Issue
  • - Volume 2018
  • - Article ID 6076173
  • - Research Article

Incorporating Contagion in Portfolio Credit Risk Models Using Network Theory

Ioannis Anagnostou | Sumit Sourabh | Drona Kandhai
  • Special Issue
  • - Volume 2017
  • - Article ID 3979836
  • - Research Article

A Network-Based Dynamic Analysis in an Equity Stock Market

Juan Eberhard | Jaime F. Lavin | Alejandro Montecinos-Pearce
  • Special Issue
  • - Volume 2017
  • - Article ID 9895632
  • - Research Article

Partially Overlapping Ownership and Contagion in Financial Networks

Micah Pollak | Yuanying Guan
Complexity
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 Journal metrics
Acceptance rate43%
Submission to final decision64 days
Acceptance to publication35 days
CiteScore3.200
Impact Factor2.462
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