Mapping the UK Interbank System
39 Pages Posted: 29 Nov 2014
Date Written: November 28, 2014
We present new evidence on the structure of interbank connections in key markets: derivatives, marketable securities, repo, unsecured lending and secured lending. Taken together, these markets comprise two networks: a network of interbank exposures and a network of interbank funding. Network structure varies across and within these two networks, for reasons related to markets’ different economic functions. Credit risk and liquidity risk therefore propagate in the interbank system through different network structures, with implications for financial stability.
Keywords: Interbank markets, core-periphery, intermediation, financial networks, market microstructure
JEL Classification: D85, G21, L14
Suggested Citation: Suggested Citation