The topology of interbank payment flows

Kimmo Soramäki (), Morten Bech (), Jeffrey Arnold, Robert J. Glass and Walter E. Beyeler

Physica A: Statistical Mechanics and its Applications, 2007, vol. 379, issue 1, 317-333

Abstract: We explore the network topology of the interbank payments transferred between commercial banks over the Fedwire® Funds Service. We find that the network has both a low average path length and low connectivity. The network includes a tightly connected core of banks to which most other banks connect. The degree distribution is scale free over a substantial range. We find that the properties of the network changed considerably in the immediate aftermath of the events of September 11, 2001.

Keywords: Complex networks; Scale-free networks; Payment systems; Economic networks (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (257)

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Working Paper: The topology of interbank payment flows (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:379:y:2007:i:1:p:317-333

DOI: 10.1016/j.physa.2006.11.093

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