Authority centrality and hub centrality as metrics of systemic importance of financial market infrastructures

León-Rincón, Carlos Eduardo; Pérez-Villalobos, Jhonatan; León, Carlos

doi:10.32468/be.754

Cited by 5 publications

(2 citation statements)

References 9 publications

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“…Nicosia et al (2012) proposed Feedback centrality based on PageRank centrality. Rincón and Villalobos (2013) proposed authority centrality and hub centrality. However, few scholars have conducted in-depth discussions on the factors that affect the level of systemic importance in the stock network.…”

Section: Introductionmentioning

confidence: 99%

The Stock Correlation Network Model and Its Influencing Factors in China's Green Finance Market

Zhao

et al. 2022

Preprint

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Green finance is a significant step to achieving environmentally sustainable development in the context of carbon neutrality. Based on the perspective of the stock correlation network, we select 51 green and environmental protection enterprises and construct the stock correlation network model in China's green financial market according to the correlation of their stock price fluctuations. On this basis, it discusses its network topologies and its dynamic evolution characteristics. After that, it deeply studies its impact mechanism of systemically importance in China's green financial market and introduces the major green financial policies for comparative analysis. In the light of empirical research, we can obtain the following results. First, the stock size distribution in China's green financial market has a power-law tail. Second, a sharp drop in the market index will increase the aggregation of the stock correlation network in the green financial market. Third, the variables about corporate social responsibility, corporate R&D investment intensity, and corporate green innovation output play significant roles in promoting the individual companies’ systemically importance ranking in the stock correlation networks of China’s green financial market. Fourth, the implementation of major green financial policies has promoted the improvement of the systematic importance of state-owned enterprises. Finally, the research enriches the application research of complex network theory in the green financial market and provides practical guidance for regulators to strengthen the risk monitoring of the green financial market.

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Section: Introductionmentioning

confidence: 99%

The Stock Correlation Network Model and Its Influencing Factors in China's Green Finance Market

Zhao

et al. 2022

Preprint

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“…Nicosia et al [12] propose the concept of the feedback centrality in complex networks based on the PageRank centrality. Referring to the feedback centrality, Rincón and Villalobos [13] use the authority centrality and the hub centrality to measure the importance of financial systems.…”

Section: Introductionmentioning

confidence: 99%

Identifying Systemically Important Banks and Firms Based on a Multilayer DebtRank Model

Yang

Wang

et al. 2020

Mathematical Problems in Engineering

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The stability of the financial system plays a crucial role in the sustainable economic development. Hence, to identify systemically important banks and firms, we take lending relationships with different loan terms and common asset relationships with different investment cycles into consideration to present a multilayer DebtRank model of the bank-firm system. In the light of simulation research, we can obtain the following results. First, the bank-firm system constructed displays a significant core-periphery structure, which exists in the actual financial system. Then, only very few banks and firms show systemically important characteristics, where “important” subjects hold very high net assets and profits, while "fragile" subjects possess negative net assets and serious losses. Furthermore, the bank-firm multilayer DebtRank model presents a great stability to a certain extent. Overall, the multilayer DebtRank model constructed in this paper has certain theoretical reference value for the supervisory authorities to extract the internal characteristics of systemically important banks and firms and identify them effectively.

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Stability analysis of the banking system: a complex systems approach

Karaev¹,

Melnichuk²,

Guev³

et al. 2017

Journal of International Studies

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Abstract. The present work deals with the stability analysis of a banking system with the structure in the form of Apollonian graph based on such characteristics of the banking system as the modularity and inhomogeneous distribution of banks by degree, on the basis of the extended mean-field Nier model (a static approach based on a simplified balance sheet of assets and liabilities of the bank) which was used to analyze the extent of the process of bankruptcy of banks after the default of one of the banks in the banking system. The obtained results of research of stability of banking systems based on the Apollonian graphs indicate that such characteristics as modularity (i.e. clustering), and the heterogeneity of banks in the structure of the model of banking systems allow them to conform «isomorphous structure» typical of the majority of real social and biological complex adaptive systems.

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Authority centrality and hub centrality as metrics of systemic importance of financial market infrastructures

Cited by 5 publications

References 9 publications

The Stock Correlation Network Model and Its Influencing Factors in China's Green Finance Market

The Stock Correlation Network Model and Its Influencing Factors in China's Green Finance Market

Identifying Systemically Important Banks and Firms Based on a Multilayer DebtRank Model

Stability analysis of the banking system: a complex systems approach

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