Banks face different but potentially correlated risks from outside the financial system. Financial connections can share these risks, they also create means by which shocks be propagated. We examine this tradeoff in context of a new stylized fact we present: German banks are more likely to have when similar risks. develop model that rationalize such behavior. argue patterns socially suboptimal ...

Abstract Based on data from the European banking stress tests of 2014, 2016 and transparency exercise 2018 we construct networks banks demonstrate that latent geometry these financial can be well-represented by negative curvature, i.e., hyperbolic geometry. Using two different embedding methods, hydra+ Mercator, this allows us to connect network structure popularity-vs-similarity model Papdopou...

Community structure detection is an important and valuable task in financial network studies as it forms the basis of many statistical applications such prediction, risk analysis, recommendation. Financial networks have a natural multi-grained that leads to different community structures at levels. However, few pay attention these multi-part features networks. In this study, we present geometri...