Review Article
Mathematical Modeling and Stability Analysis of Systemic Risk in the Banking Ecosystem
Table 1
Parameters and their meaning.
| Parameter | Description |
| | The new rate of contagion risk caused by interactions between undistressed or risk-free banks and banks who are distressed | | The rate at which the risk-exposed banks turn back to the undistressed banks | | The rate at which the risk-exposed banks move to the risk-distressed class | | The rate at which the distressed banks become recovered and move to the recovered class | | The rate at which the distressed banks become liquidated | | The rate at which the recovered banks loose immunity and turn back to the vulnerable class |
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