Venue: R407, 4th floor Lionel Robbins Building
Speaker: Stefano Battiston (Professor of Banking at the University of Zurich)
Title: Distress and systemic risk in financial networks
Abstract: When financial institutions are connected via balance sheet interlock and overlapping portfolios in a network of contracts, the default probability of one institution depends on the default probability of all the other institutions. There are various questions and issues associated with the determination of the the systemic importance of a bank as well as with the determination of the most resilient architecture. The talk will present the insights of some recent works on this topic and their implications.
Slides part 1 (pdf)
Slides part 2 (pdf)