Network Entropy and Systemic Risk in Dynamic Banking Systems

oleh: Liang He, Shouwei Li

Format: Article
Diterbitkan: Wiley 2017-01-01

Deskripsi

We investigate network entropy of dynamic banking systems, where interbank networks analyzed include random networks, small-world networks, and scale-free networks. We find that network entropy is positively correlated with the effect of systemic risk in the three kinds of interbank networks and that network entropy in the small-world network is the largest, followed by those in the random network and the scale-free network.