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The topology of interbank payment flows

Author

Listed:
  • Jeffrey Arnold
  • Morten L. Bech
  • Walter E. Beyeler
  • Robert J. Glass
  • Kimmo Soramaki

Abstract

We explore the network topology of the interbank payments transferred between commercial banks over the Fedwire Funds Service. We find that the network is compact despite low connectivity. The network includes a tightly connected core of money-center banks to which all other banks connect. The degree distribution is scale-free over a substantial range. We find that the properties of the network changed considerably in the immediate aftermath of the attacks of September 11, 2001.

Suggested Citation

  • Jeffrey Arnold & Morten L. Bech & Walter E. Beyeler & Robert J. Glass & Kimmo Soramaki, 2006. "The topology of interbank payment flows," Staff Reports 243, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednsr:243
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    References listed on IDEAS

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    Keywords

    Fedwire; Payment systems; Electronic funds transfers; Banking structure;
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