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Mapping the UK interbank system

Listed author(s):
  • Langfield, Sam

    ()

    (Bank of England)

  • Liu, Zijun

    ()

    (Bank of England)

  • Ota, Tomohiro

    ()

    (Bank of England)

We present new evidence on the structure of interbank connections in key markets: derivatives, marketable securities, repo, unsecured lending and secured lending. Taken together, these markets comprise two networks: a network of interbank exposures and a network of interbank funding. Network structure varies across and within these two networks, for reasons related to markets’ different economic functions. Credit risk and liquidity risk therefore propagate in the interbank system through different network structures, with implications for financial stability.

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File URL: http://www.bankofengland.co.uk/research/Documents/workingpapers/2014/wp516.pdf
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Paper provided by Bank of England in its series Bank of England working papers with number 516.

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Length: 39 pages
Date of creation: 28 Nov 2014
Handle: RePEc:boe:boeewp:0516
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