The Effect of Shadow Banking on the Systemic Risk in a Dynamic Complex Interbank Network System
After the financial crisis triggered by the subprime mortgage crisis in the United States in 2008, many scholars believed that the unstable transmission of shadow banking business in the banking system is the main factor causing financial turmoil. This paper proposes a dynamic complex interbank netw...
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| Format: | Article |
| Language: | English |
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Wiley
2020-01-01
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| Series: | Complexity |
| Online Access: | http://dx.doi.org/10.1155/2020/3951892 |
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| _version_ | 1832551906001551360 |
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| author | Hong Fan Hongjie Pan |
| author_facet | Hong Fan Hongjie Pan |
| author_sort | Hong Fan |
| collection | DOAJ |
| description | After the financial crisis triggered by the subprime mortgage crisis in the United States in 2008, many scholars believed that the unstable transmission of shadow banking business in the banking system is the main factor causing financial turmoil. This paper proposes a dynamic complex interbank network system model with shadow banking in which the dynamic complex interbank network system differs from the traditional banking network and is formed by the interrelated business between shadow banks and commercial banks to explore the effect of shadow banking on the systemic risk. The results show that the existence of shadow banking will increase the systemic risk, accelerate the speed of bankruptcy of banks, reduce the survival ratio of banks, and increase the strength of central bank assistance. The smaller the number of shadow banks in the system, the higher the degree of credit connection among commercial banks and the smaller the systemic risk. |
| format | Article |
| id | doaj-art-cdbfea8e0365428bb5bf052b3a57cbbf |
| institution | Kabale University |
| issn | 1076-2787 1099-0526 |
| language | English |
| publishDate | 2020-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Complexity |
| spelling | doaj-art-cdbfea8e0365428bb5bf052b3a57cbbf2025-02-03T06:00:11ZengWileyComplexity1076-27871099-05262020-01-01202010.1155/2020/39518923951892The Effect of Shadow Banking on the Systemic Risk in a Dynamic Complex Interbank Network SystemHong Fan0Hongjie Pan1Glorious Sun School of Business and Management, Donghua University, Shanghai 200051, ChinaGlorious Sun School of Business and Management, Donghua University, Shanghai 200051, ChinaAfter the financial crisis triggered by the subprime mortgage crisis in the United States in 2008, many scholars believed that the unstable transmission of shadow banking business in the banking system is the main factor causing financial turmoil. This paper proposes a dynamic complex interbank network system model with shadow banking in which the dynamic complex interbank network system differs from the traditional banking network and is formed by the interrelated business between shadow banks and commercial banks to explore the effect of shadow banking on the systemic risk. The results show that the existence of shadow banking will increase the systemic risk, accelerate the speed of bankruptcy of banks, reduce the survival ratio of banks, and increase the strength of central bank assistance. The smaller the number of shadow banks in the system, the higher the degree of credit connection among commercial banks and the smaller the systemic risk.http://dx.doi.org/10.1155/2020/3951892 |
| spellingShingle | Hong Fan Hongjie Pan The Effect of Shadow Banking on the Systemic Risk in a Dynamic Complex Interbank Network System Complexity |
| title | The Effect of Shadow Banking on the Systemic Risk in a Dynamic Complex Interbank Network System |
| title_full | The Effect of Shadow Banking on the Systemic Risk in a Dynamic Complex Interbank Network System |
| title_fullStr | The Effect of Shadow Banking on the Systemic Risk in a Dynamic Complex Interbank Network System |
| title_full_unstemmed | The Effect of Shadow Banking on the Systemic Risk in a Dynamic Complex Interbank Network System |
| title_short | The Effect of Shadow Banking on the Systemic Risk in a Dynamic Complex Interbank Network System |
| title_sort | effect of shadow banking on the systemic risk in a dynamic complex interbank network system |
| url | http://dx.doi.org/10.1155/2020/3951892 |
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