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Money-center structures in dynamic banking systems

Author

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  • Shouwei Li

    (School of Economics and Management, Southeast University)

  • Minghui Zhang

    (School of Economics and Management, Southeast University)

Abstract

In this paper, we propose a dynamic model for banking systems based on the description of balance sheets. It generates some features identified through empirical analysis. Through simulation analysis of the model, we find that banking systems have the feature of money-center structures, that bank asset distributions are power-law distributions, and that contract size distributions are log-normal distributions.

Suggested Citation

  • Shouwei Li & Minghui Zhang, 2016. "Money-center structures in dynamic banking systems," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 89(10), pages 1-7, October.
    • Handle: RePEc:spr:eurphb:v:89:y:2016:i:10:d:10.1140_epjb_e2016-70152-1
    DOI: 10.1140/epjb/e2016-70152-1
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    References listed on IDEAS

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    1. Franziska Bremus & Claudia M. Buch & Katheryn N. Russ & Monika Schnitzer, 2018. "Big Banks and Macroeconomic Outcomes: Theory and Cross‐Country Evidence of Granularity," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 50(8), pages 1785-1825, December.
    2. Lara Mónica Machado Fernandes & Maria Rosa Borges, 2013. "Interbank Linkages and Contagion Risk in the Portuguese Banking System," Working Papers Department of Economics 2013/23, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    3. repec:lmu:muenar:20226 is not listed on IDEAS
    4. Marko Krznar, 2009. "Contagion Risk in the Croatian Banking System," Working Papers 20, The Croatian National Bank, Croatia.
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    Keywords

    Statistical and Nonlinear Physics;

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