Optimal equity infusions in interbank networks

Hamed Amini, Andreea Minca and Agnès Sulem

Journal of Financial Stability, 2017, vol. 31, issue C, 1-17

Abstract: We study optimal equity infusions into a financial network prone to the risk of contagious failures, which may be due to insolvency or to bank runs by short term creditors. Bank runs can be triggered by failures of connected banks.

Keywords: Systemic risk; Markov decision process; Liquidity risk; Rollover risk; Financial contagion (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finsta:v:31:y:2017:i:c:p:1-17

DOI: 10.1016/j.jfs.2017.05.008

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