Abstract

This chapter describes the application of the network approach to banking. Network theory and the network approach are utilized to better understand the operation of complex systems. This is possible; thanks to the use of network models and their analysis. There is a variety of network models to map different real systems. This chapter presents the types of models useful in the analysis of banking systems that are complex systems by nature. Banking system network models allow the study of phenomena such as the spread of risk in the banking sector. This chapter also discusses the scenarios of risk spreading in the banking network, and how to mitigate the impact of the risk on network nodes.

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