演講者簡介 : Professor Wang received his Ph.D. from London School of Economics in 2009. He is currently a Lecturer at the University of Essex. His research interests include Contract Theory, Financial Economics, Microeconomics, Monetary Economics.
演講摘要 : This paper presents a new approach to endogenize interbank credit networks and applies it to study the issue of too connected to fail (TCTF). This approach is based on the specialty of banks that their liabilities are accepted as a means of payment, which is overlooked in the existing literature on interbank networks. Using this approach, this paper endogenizes a star structured network and sheds the following new insights. 1. Interbank networks of credit claims alone do not have the issue of TCTF. To consider this issue, therefore, another type claims needs to be introduced, which is insurance in this paper. 2. The insurance premium is negatively related to the interbank interest rate and bears a negative profit margin if the latter is above a threshold. 3. There is a zone of news in which the event of the system meltdown is likely to happen but has not yet happened, providing the government with a space of time to act. 4. The star-structured banking network is a source for inefficiency and agglomeration.
