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 Android Programming Unleashed by Franklin Allen, Ana Babus
Cover of the book Microsoft Expression Blend 4 Unleashed by Franklin Allen, Ana Babus
Cover of the book Taming your Photo Library with Adobe Lightroom by Franklin Allen, Ana Babus
Cover of the book Android Database Best Practices by Franklin Allen, Ana Babus
Cover of the book From Idea to Web Start-up in 21 Days by Franklin Allen, Ana Babus
Cover of the book Calvinize by Franklin Allen, Ana Babus
Cover of the book Essentials of Chemical Reaction Engineering by Franklin Allen, Ana Babus
Cover of the book The Leader's Guide to Impact by Franklin Allen, Ana Babus
Cover of the book Adobe Photoshop and Lightroom Classic CC Classroom in a Book (2019 release) by Franklin Allen, Ana Babus
Cover of the book Adobe Dreamweaver CS3 How-Tos by Franklin Allen, Ana Babus
Cover of the book CCNP SWITCH Portable Command Guide by Franklin Allen, Ana Babus
Cover of the book Sams Teach Yourself Web Publishing with HTML and CSS in One Hour a Day by Franklin Allen, Ana Babus
Cover of the book York Notes Companions: Shakespeare and Renaissance Drama by Franklin Allen, Ana Babus
Cover of the book Law Express: Company Law by Franklin Allen, Ana Babus
Cover of the book Voice Application Development with VoiceXML 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