Abstract
The global financial crisis triggered by the US subprime mortgage crisis in 2008 has caused serious impact on the financial system around the world, which also aggravated the banking system. Since the banking industry is the core element of financial system, various scholars and relevant regulatory authorities have paid attention to the stability of the banking system. Unlike the traditional qualitative research, many scholars have adopted the method of computational finance based on the complex network theory to explore the banking system in recent years. Therefore, this paper has carried out a literature review of the stability of banking system under different network structures. It presents the analysis of model and results so as to have a clear understanding on the topic.
Highlights
The financial activities have been expanded and deepened on a global scale in the process of economic and financial globalization
Maintaining the stability of the banking system is of great significance, and the turbulence in global financial markets brought by the financial crisis has made it a hot topic for scholars globally
By sorting out the existing relevant literatures, we found that the theoretical analysis of the banking system stability under different network structures mainly focuses on three aspects: the stability of banking system under the simple network structure, the scale-free network or core-edge network and the comparative study of the stability of banking system with different network structures
Summary
The financial activities have been expanded and deepened on a global scale in the process of economic and financial globalization. With the development of the complex network theory, various scholars have explored the stability of the banking system based on the perspective of network structure. Some scholars mainly use the relevant theory of complex network to construct the banking system network model, and explore the stability of the banking system under different network structures when it is shocked. Some scholars have collected the actual data from the banking industry in their country, and verified the network structure of banking system by analyzing the degree distribution of. They could study the stability of the banking system based on the actual network structure empirically.
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