|
EconStor >
Deutsche Bundesbank, Forschungszentrum, Frankfurt am Main >
Discussion Paper Series 2: Banking and Financial Studies, Deutsche Bundesbank >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/43884
|
| | |
| Title: | | Interbank tiering and money center banks  |
| Authors: | | Craig, Ben R. von Peter, Goetz |
| Issue Date: | | 2010 |
| Series/Report no.: | | Discussion Paper Series 2: Banking and Financial Studies 2010,12 |
| Abstract: | | This paper provides evidence that interbank markets are tiered rather than flat, in the sense that most banks do not lend to each other directly but through money center banks acting as intermediaries. We capture the concept of tiering by developing a core-periphery model, and devise a procedure for fitting the model to real-world networks. Using Bundesbank data on bilateral interbank exposures among 1800 banks, we find strong evidence of tiering in the German banking system. Moreover, bankspecific features, such as balance sheet size, predict how banks position themselves in the interbank market. This link provides a promising avenue for understanding the formation of financial networks. |
| Subjects: | | interbank markets intermediation networks tiering core and periphery market structure |
| JEL: | | G21 L14 D85 C63 |
| ISBN: | | 978-3-86558-661-2 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Discussion Paper Series 2: Banking and Financial Studies, Deutsche Bundesbank
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/43884
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|