Enterprise Size Distribution in the Financial Network

Abstract

Due to the increasingly developed supply chain, the financial network has become more and more perfect in recent years. The financial network connects all enterprises, which helps small-scale enterprises get rid of difficulties and promotes the development of the whole industry. This paper studies the influence of enterprises of different scales on the whole financial network. Taking banks as an example, this paper builds a banking system composed of several banks, which are connected by inter-bank links. Then, a model is constructed to simulate different kinds of impacts on financial networks. After the simulation, the results of various situations are analyzed. Finally, it is concluded that large-scale enterprises play a vital role in the financial network. At the same time, this paper also expounds on the disaster that large-scale enterprises will bring to financial networks once they have their own crisis.