 Assessing resilience to systemic risks across interbank credit networks using linkage-leverage analysis: Evidence from JapanHaibo Wang International Review of Financial Analysis, 2024, vol. 94, issue C Abstract: The banking crisis started in March 2023 was triggered by disproportion of deposit liability and assets. Applying balance sheets from 1999 to 2022, from the Japanese Bank Association, this study scrutinizes the durability of high-priority banking systems against damaging events in that industry. Eyeing the unique high-level savings in Japanese banking, this study investigates the impact of disproportion of deposit liability and assets on the financial stability of interbank credit networks through a linkage-leverage analysis. This study presents a novel framework that combines actor-network theory, network optimization, and bilateral risk exposure approaches into linkage-leverage analysis. The results in this study show that the bilateral risk exposure during a subset of years is smaller than other years, which indicates that Japanese banks minimize the risk exposure by shifting the network relationship. Finally, this study provides supporting evidence to the new paradigms on developing more stable financial systems. Keywords: Interbank credit networks; Systemic risk; Contagion; Bilateral exposures; Japanese banks (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:94:y:2024:i:c:s1057521924002722 DOI: 10.1016/j.irfa.2024.103340 Access Statistics for this article International Review of Financial Analysis is currently edited by B.M. Lucey More articles in International Review of Financial Analysis from Elsevier |
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