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Optimal equity infusions in interbank networks

Author

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  • Amini, Hamed
  • Minca, Andreea
  • Sulem, Agnès

Abstract

We study optimal equity infusions into a financial network prone to the risk of contagious failures, which may be due to insolvency or to bank runs by short term creditors. Bank runs can be triggered by failures of connected banks.

Suggested Citation

  • Amini, Hamed & Minca, Andreea & Sulem, Agnès, 2017. "Optimal equity infusions in interbank networks," Journal of Financial Stability, Elsevier, vol. 31(C), pages 1-17.
  • Handle: RePEc:eee:finsta:v:31:y:2017:i:c:p:1-17
    DOI: 10.1016/j.jfs.2017.05.008
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    References listed on IDEAS

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