Transaction Network Structural Shift under Crisis: Macro and Micro Perspectives

Andry Alamsyah, Dian Puteri Ramadhani, Farida Titik Kristanti, Khairunnisa Khairunnisa

Informasi Dasar

55 kali
24.55.015
658.15
e - Article Journal
17 A

In 2008, the Lehman Brothers’ bankruptcy, accumulated from the global financial crisis, proved a unique role of the highly interconnected financial entities. Shocks in a bank might trigger loss, induce spillovers, provoke a contagion shock spreading to other entities, trigger the whole banking system to collapse, and ultimately unsettle the worldwide economy. Therefore, evaluating financial stability through a system-wide network approach provides more adequate knowledge than evaluating a bank as an individual. In this approach, individual banks and their transaction activities are modeled into a transaction network, forming a network topology. Financial shocks are generally detected through various macro procedures, such as outstanding external debt and uncontrolled transaction deficits. This study proposes financial shock detection from a macro and micro perspective by exploring the effect of disruption on transaction network structure. We investigate the most changing triadic motif as a crisis predictor from a micro perspective due to the crisis period. The case study is the transaction network structural shift under the 2008 crisis in Indonesia, where the observations were performed from the pre-crisis to the post-crisis period. We discovered a motif with the significant changes as the underlying financial crisis predictor. This scenario provides support for the financial system’s stability control.

Subjek

FINANCIAL MANAGEMENT
 

Katalog

Transaction Network Structural Shift under Crisis: Macro and Micro Perspectives
-
12p.: pdf file.; 1 MB
English

Sirkulasi

Rp. 0
Rp. 0
Tidak

Pengarang

Andry Alamsyah, Dian Puteri Ramadhani, Farida Titik Kristanti, Khairunnisa Khairunnisa
Perorangan
 
 

Penerbit

Economies
Basel
2022

Koleksi

Kompetensi

 

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