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Bank Network Analysis in the ECCU
Author:
Mr. Balazs Csonto
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Mr. Alejandro D Guerson
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Ms. Alla Myrvodanull

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Emefa Sewordornull

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Series:
IMF Working Papers
Volume/Issue:
Volume 2018: Issue 162
Language:
English
Publication Date:
12 Jul 2018
DOI:
https://doi.org/10.5089/9781484367506.001
ISBN:
9781484367506
ISSN:
1018-5941
Pages:
32
Keywords:
WP; bank; ECCU; capital; asset; incorporated bank; F34; G21; ECCU bank; bank capital; defaulted claim; liquidity holding; portfolios diversification opportunity; bank exposure; bank institution; creditor bank; remains high; bank assets; bank network analysis; Commercial banks; Nonperforming loans; Distressed institutions; Credit; Market risk; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper applies network analysis to assess the extent of systemic vulnerabilities in the ECCU banking system. It includes two sets of illustrative stress tests. First, solvency and liquidity shocks to each individual bank and the impact on other banks in the network through their biltareal net asset exposures. Second, country and region-wide tail shocks to GDP affecting capital and liquidity of all banks in the shocked jurisdictions, followed by the rippling effects through the regional network. The results identify systemic institutions that merit hightened attention by the regulator, as determined by the degree of connectivity with the rest of the system, and the extent to which they are vulnerable to the failure of other banks.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2018: Issue 162