A Regulation Model for the Solvency of Banking System: Based on the Pinning Control Theory of Complex Network
A dynamic model is proposed based on the pinning control theory of complex network in order to simulate government bailouts against financial crisis and then is applied to a stress test of China’s interbank borrowing and lending network from 2007 to 2014. The proposed model takes many cases into acc...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Wiley
2017-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2017/9732678 |
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| _version_ | 1832560203795529728 |
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| author | Xiang Gao Ming Zhou Hongbing Ouyang |
| author_facet | Xiang Gao Ming Zhou Hongbing Ouyang |
| author_sort | Xiang Gao |
| collection | DOAJ |
| description | A dynamic model is proposed based on the pinning control theory of complex network in order to simulate government bailouts against financial crisis and then is applied to a stress test of China’s interbank borrowing and lending network from 2007 to 2014. The proposed model takes many cases into account, so it is able to simulate bailout effects with different parameters, capture temporal and individual differences of banks’ spillovers effects, and reflect their sensitivity to government bailouts indirectly. This paper offers an innovative model to identify the systemic-important banks in financial crisis and construct a macroprudential regulation system based on network theory. |
| format | Article |
| id | doaj-art-b3e39395c3124fd890809a40065d027b |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2017-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-b3e39395c3124fd890809a40065d027b2025-02-03T01:28:13ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2017-01-01201710.1155/2017/97326789732678A Regulation Model for the Solvency of Banking System: Based on the Pinning Control Theory of Complex NetworkXiang Gao0Ming Zhou1Hongbing Ouyang2School of Economics, Huazhong University of Science and Technology, Wuhan, Hubei 430074, ChinaSchool of Economics, Huazhong University of Science and Technology, Wuhan, Hubei 430074, ChinaSchool of Economics, Huazhong University of Science and Technology, Wuhan, Hubei 430074, ChinaA dynamic model is proposed based on the pinning control theory of complex network in order to simulate government bailouts against financial crisis and then is applied to a stress test of China’s interbank borrowing and lending network from 2007 to 2014. The proposed model takes many cases into account, so it is able to simulate bailout effects with different parameters, capture temporal and individual differences of banks’ spillovers effects, and reflect their sensitivity to government bailouts indirectly. This paper offers an innovative model to identify the systemic-important banks in financial crisis and construct a macroprudential regulation system based on network theory.http://dx.doi.org/10.1155/2017/9732678 |
| spellingShingle | Xiang Gao Ming Zhou Hongbing Ouyang A Regulation Model for the Solvency of Banking System: Based on the Pinning Control Theory of Complex Network Discrete Dynamics in Nature and Society |
| title | A Regulation Model for the Solvency of Banking System: Based on the Pinning Control Theory of Complex Network |
| title_full | A Regulation Model for the Solvency of Banking System: Based on the Pinning Control Theory of Complex Network |
| title_fullStr | A Regulation Model for the Solvency of Banking System: Based on the Pinning Control Theory of Complex Network |
| title_full_unstemmed | A Regulation Model for the Solvency of Banking System: Based on the Pinning Control Theory of Complex Network |
| title_short | A Regulation Model for the Solvency of Banking System: Based on the Pinning Control Theory of Complex Network |
| title_sort | regulation model for the solvency of banking system based on the pinning control theory of complex network |
| url | http://dx.doi.org/10.1155/2017/9732678 |
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