Research on Bank Network Models with Money-center Structures

Abstract

Abstract:

In order to explain the formation mechanism of money-center structures in the real banking system, this paper constructs a dynamic evolution model of bank networks based on the description of bank balance sheets and the interbank lending mechanism. Through the simulation analysis, it is found that the constructed model of bank networks has the characteristics of money-center structures; banks with large-scale assets are money-center banks, but the status of money-center banks is evolving over time; banks with short liquidity borrow money from other banks through low interest rate strategy, and banks with large-scale assets tend to attract banks with short liquidity through low interest rates; the bank network density based on the combined data has a strong stability; complementary cumulative distribution functions of bank assets and inter-bank lending follow a lognormal distribution respectively.

Key words: bank network, money-center structure, network density, network structure

Li Zhi, Niu Xiaojian. Research on Bank Network Models with Money-center Structures[J]. , 2018, 30(4): 12-19.

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