The Network Challenge (Chapter 21)

Networks in Finance

Business & Finance, Management & Leadership, Planning & Forecasting
Cover of the book The Network Challenge (Chapter 21) by Franklin Allen, Ana Babus, Pearson Education
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Franklin Allen, Ana Babus ISBN: 9780137015511
Publisher: Pearson Education Publication: May 19, 2009
Imprint: FT Press Language: English
Author: Franklin Allen, Ana Babus
ISBN: 9780137015511
Publisher: Pearson Education
Publication: May 19, 2009
Imprint: FT Press
Language: English

Modern financial systems exhibit a high degree of interdependence, with connections between financial institutions stemming from both the asset and the liability sides of their balance sheets. Networks--broadly understood as a collection of nodes and links between nodes--can be a useful representation of financial systems. By modeling economic interactions, network analysis can better explain certain economic phenomena. In this chapter, Allen and Babus argue that the use of network theories can enrich our understanding of financial systems. They explore several critical issues. First, they address the issue of systemic risk, by studying two questions: how resilient financial networks are to contagion, and how financial institutions form connections when exposed to the risk of contagion. Second, they consider how network theory can be used to explain freezes in the interbank market. Third, they examine how social networks can improve investment decisions and corporate governance, based on recent empirical results. Fourth, they examine the role of networks in distributing primary issues of securities. Finally, they consider the role of networks as a form of mutual monitoring, as in microfinance.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Modern financial systems exhibit a high degree of interdependence, with connections between financial institutions stemming from both the asset and the liability sides of their balance sheets. Networks--broadly understood as a collection of nodes and links between nodes--can be a useful representation of financial systems. By modeling economic interactions, network analysis can better explain certain economic phenomena. In this chapter, Allen and Babus argue that the use of network theories can enrich our understanding of financial systems. They explore several critical issues. First, they address the issue of systemic risk, by studying two questions: how resilient financial networks are to contagion, and how financial institutions form connections when exposed to the risk of contagion. Second, they consider how network theory can be used to explain freezes in the interbank market. Third, they examine how social networks can improve investment decisions and corporate governance, based on recent empirical results. Fourth, they examine the role of networks in distributing primary issues of securities. Finally, they consider the role of networks as a form of mutual monitoring, as in microfinance.

More books from Pearson Education

Cover of the book OSPF Complete Implementation by Franklin Allen, Ana Babus
Cover of the book Breakthrough! by Franklin Allen, Ana Babus
Cover of the book Pay Less for Phone Services by Franklin Allen, Ana Babus
Cover of the book The Facebook Era by Franklin Allen, Ana Babus
Cover of the book The Ultimate Player's Guide to Skylanders SuperChargers (Unofficial Guide) by Franklin Allen, Ana Babus
Cover of the book IoT Fundamentals by Franklin Allen, Ana Babus
Cover of the book Sams Teach Yourself iPhone Application Development in 24 Hours by Franklin Allen, Ana Babus
Cover of the book Microsoft Access 2010 Inside Out by Franklin Allen, Ana Babus
Cover of the book The Macintosh iLife 09 by Franklin Allen, Ana Babus
Cover of the book Effective Debugging by Franklin Allen, Ana Babus
Cover of the book Adobe Photoshop Lightroom 3 Classroom in a Book by Franklin Allen, Ana Babus
Cover of the book Screw Work, Let's Play ePub eBook by Franklin Allen, Ana Babus
Cover of the book Level 3: Othello by Franklin Allen, Ana Babus
Cover of the book CompTIA Security+ SY0-301 Authorized Practice Questions Exam Cram by Franklin Allen, Ana Babus
Cover of the book Photoshop for Games by Franklin Allen, Ana Babus
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy