Addressing Interconnectedness: Concepts and Prudential Tools

Nicolas Arregui, Mohamed Norat, Antonio Pancorbo, Jodi Scarlata, Eija Holttinen, Fabiana Melo, Jay Surti, Christopher Wilson, Rodolfo Wehrhahn and Mamoru Yanase

No 2013/199, IMF Working Papers from International Monetary Fund

Abstract: This paper reviews tools used to identify and measure interconnectedness and raises the awareness of policymakers as to potential cross-sectional implications of prudential tools aimed at controlling interconnectedness. The paper examines two sets of tools—developed at the IMF and externally—to identify the implications of interconnectedness in systemic risk and how these tools have been applied in IMF surveillance. The paper then proposes a preliminary framework to analyze some key internationally-agreed-upon and national prudential tools and finds that while many prudential tools are effective in reducing interconnectedness, the interaction among these tools is far less clear cut.

Keywords: WP; banking system; clearing member; counterparty exposure; credit risk; resolution framework; Interconnectedness; network analysis; prudential tools; policymakers; systemic risk; capital surcharge; exposure limit; liquidity regulation; FI size; FI restructuring; funding cost; bank portfolio; balance sheet exposure; investment banking; resolution process; Financial contagion; Liquidity requirements; Bank resolution framework; Countercyclical capital buffers; Global (search for similar items in EconPapers)
Pages: 58
Date: 2013-09-26
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=40962 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2013/199

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().