NETWORK ANALYSIS OF INTERBANK CROSS-BORDER FLOWS AT COUNTRY LEVEL (2006 - 2015)

Abstract

In today’s globalized world, economic activities are performed beyond the physical boundaries of countries. It can be seen as increasing activities such as trade of goods, financial flows and trade of intermediate goods. Network analysis, that has been used to analyze formations of complex systems recently, is frequently used to investigate these global economic relations. In this context, international trade networks, financial networks and global production networks (input-output networks) are some of the fields that are analyzed in an interdisciplinary way. In this study, it is aimed to analyze interbank cross-border flows at country-level by applying network analysis. Thus, we expect to investigate the systemic importance and vulnerabilities of countries in international banking sector by applying HITs algorithm from 2006 to 2015. HITs algorithm has an advantage since it takes second order adjacencies of countries into consideration. As a consequence of the analysis, it will be possible to see the effects of global and Eurozone crises on systemic importance and vulnerabilities of countries. 

Keywords

• Financial crises,international financial network,network analysis,international financial markets,interbank flows

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