- Group Name: destructive
- Group participants names: Deichmann Marion; Kaiser Laurenz; Schäfer Timo
- Project Title: Modelling Contagion in a Core-Periphery Financial Network
Especially after the collapse of Lehman in 2008 researchers and policy makers have shifted their focus towards the interconnectedness of financial intermediaries regarding interbank lending. It has been shown that the default of a bank can trigger other banks' failure via the network structure. Since then global discussions regarding capital requirements and banking regulations have emerged, i.e. Basel III, Volcker Rule, Liikanen report, UK Whitebook. All these measures aim to decrease the probability of default of banks and hence, to reduce contagion w.r.t. financial distress.
see proposal_css.pdf