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Series:   Elements in the Economics of Emerging Markets

Cross-Border Interbank Contagion Risk Analysis

Evidence from Selected Emerging and Less-Developed Economies in the Asia-Pacific Region

Published online by Cambridge University Press:  08 July 2020

Roman Matousek  and
Ole Rummel
Roman Matousek
Affiliation:
Queen Mary University of London
Ole Rummel
Affiliation:
The South East Asian Central Banks (SEACEN) Research and Training Centre

Summary

This Element provides a detailed overview of the structural changes in the Asia-Pacific region from the early 2000s onwards. It reviews the most relevant literature on this important topic. The following two research areas are explored: first, by deploying visual network analysis (VNA), we analyse cross-border interbank claims and liabilities of the individual countries located in the Asia-Pacific region. Such an analysis evaluates interbank exposures to systematically important banks within the specific market. The important advantage of VNA is that it allows us to examine the 'hierarchical' cross-country interbank contagion risk that seems to have been neglected in similar studies. Secondly, we evaluate the contagion risk to the individual countries spreading from the financial centres in Hong Kong, Singapore, Tokyo, New York and London. The analysis unveils links and statistical factors that could be used as a key tool for detecting the potential triggers of systemic risk.
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Keywords

Asia-Pacific regionemerging economiescontagion risk
Type
Element
Information
Series: Elements in the Economics of Emerging Markets
Online ISBN: 9781108882040
Publisher: Cambridge University Press
Print publication: 30 July 2020

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Cross-Border Interbank Contagion Risk Analysis
  • Roman Matousek, Queen Mary University of London, Ole Rummel, The South East Asian Central Banks (SEACEN) Research and Training Centre
  • Online ISBN: 9781108882040
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Cross-Border Interbank Contagion Risk Analysis
  • Roman Matousek, Queen Mary University of London, Ole Rummel, The South East Asian Central Banks (SEACEN) Research and Training Centre
  • Online ISBN: 9781108882040
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Cross-Border Interbank Contagion Risk Analysis
  • Roman Matousek, Queen Mary University of London, Ole Rummel, The South East Asian Central Banks (SEACEN) Research and Training Centre
  • Online ISBN: 9781108882040
Available formats
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