Identifying central bank liquidity super-spreaders in interbank funds networks

Carlos León, Clara Machado () and Miguel Sarmiento ()

No 11187, Borradores de Economia from Banco de la Republica

Abstract: Evidence suggests that the Colombian interbank funds market is an inhomogeneous and hierarchical network in which a few financial institutions fulfill the role of “super-spreaders” of central bank liquidity among market participants. Results concur with evidence from other interbank markets and other financial networks regarding the flaws of traditional direct financial contagion models based on homogeneous and non-hierarchical networks, and provide further evidence about financial networks’ self-organization emerging from complex adaptive financial systems. Our research work contributes to central bank’s efforts by (i) examining and characterizing the actual connective structure of interbank funds networks; (ii) identifying those financial institutions that may be considered as the most important conduits for monetary policy transmission, and the main drivers of contagion risk within the interbank funds market; (iii) providing new elements for the implementation of monetary policy and for safeguarding financial stability.

Keywords: Interbank; monetary policy; contagion; networks; super-spreader; central bank. (search for similar items in EconPapers)
JEL-codes: E5 G2 L14 (search for similar items in EconPapers)
Pages: 27
Date: 2014-04-28
New Economics Papers: this item is included in nep-ban, nep-cba, nep-mac, nep-mon and nep-net
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Related works:
Journal Article: Identifying central bank liquidity super-spreaders in interbank funds networks (2018)
Working Paper: Identifying Central Bank Liquidity Super-Spreaders in Interbank Funds Networks (2015)
Working Paper: Identifying Central Bank Liquidity Super-Spreaders in Interbank Funds Networks (2015)
Working Paper: Identifying Central Bank Liquidity Super-Spreaders in Interbank Funds Networks (2015)
Working Paper: Identifying central bank liquidity super-spreaders in interbank funds networks (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000094:011187

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