Too-connected versus too-big-to-fail: banks’ network centrality and overnight interest rates.
- Subject: Network centrality; Interbank market; Financial crisis; Money market integration; Macro-prudential analysis.
- jel: jel:C23 | jel:D85 | jel:G01 | jel:G21 | jel:G28
What influences banks’ borrowing costs in the unsecured money market? The objective of this paper is to test whether measures of centrality, quantifying network effects due to interactions among banks in the market, can help explain heterogeneous patterns in the interes... View more