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

Year 2017, , 171 - 187, 30.06.2017

Ercan Eren , Semanur Soyyigit

https://doi.org/10.17261/Pressacademia.2017.532

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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