
French paper warns of banks precipitating crises through hoarding
A new working paper published by the Banque de France aims to fill a gap in research on banking crises by modelling how banks' pre-emptive efforts to hoard liquidity may feed into contagion effects.
The paper, Domino Effects when Banks Hoard Liquidity: the French network, by Valère Fourel, Jean-Cyprien Héam, Dilyara Salakhova and Santiago Tavolaro, uses an "iterative default cascade" algorithm to study the "domino effect" of contagion. In the model, banks stockpile liquidity to protect
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]