Network-Based Modeling and Analysis of Systemic Risk in Banking Systems

  title={Network-Based Modeling and Analysis of Systemic Risk in Banking Systems},
  author={Daning Hu and J. Leon Zhao and Zhimin Hua and Michael C. S. Wong},
  journal={MIS Q.},
In the wake of the 2008 financial tsunami, existing methods and tools for managing financial risk have been criticized for weaknesses in monitoring and alleviating risks at the systemic level. A 2009 article in Nature suggested new approaches to modeling economic meltdowns are needed to prevent future financial crises. However, existing studies have not focused on analysis of systemic risk at the individual bank level in a banking network, which is essential for monitoring and mitigating… 

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