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The Topology of Danish Interbank Money Flows

Author

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  • Kirsten Bonde Rørdam

    (Department of Economics, University of Copenhagen)

  • Morten Linnemann Bech

    (Federal Reserve Bank of New York)

Abstract

This paper presents the first topological analysis of Danish money market flows. We analyze the structure of two networks with different types of transactions. The first network is the money market network, which is driven by banks' behaviour on the interbank market, the second is the network of customer driven transactions, which is driven by banks' customers' transactions demand. We show that the structure of these networks differ. This paper adds to the new and growing literature on network topological analysis of payment systems.

Suggested Citation

  • Kirsten Bonde Rørdam & Morten Linnemann Bech, 2008. "The Topology of Danish Interbank Money Flows," FRU Working Papers 2009/01, University of Copenhagen. Department of Economics. Finance Research Unit.
  • Handle: RePEc:kud:kuiefr:200901
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    File URL: http://www.econ.ku.dk/fru/WorkingPapers/PDF/2009/200901.pdf
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    References listed on IDEAS

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    Cited by:

    1. Stephanie Rend'on de la Torre & Jaan Kalda & Robert Kitt & Juri Engelbrecht, 2016. "On the topologic structure of economic complex networks: Empirical evidence from large scale payment network of Estonia," Papers 1602.04352, arXiv.org.
    2. Bech, Morten L. & Atalay, Enghin, 2010. "The topology of the federal funds market," Physica A: Statistical Mechanics and its Applications, Elsevier, pages 5223-5246.
    3. Paulo Bastos & Nicolas L. Bottan & Julian Cristia, 2017. "Access to Preprimary Education and Progression in Primary School: Evidence from Rural Guatemala," Economic Development and Cultural Change, University of Chicago Press, pages 521-547.
    4. Serafín Martínez-Jaramillo & Biliana Alexandrova-Kabadjova & Bernardo Bravo-Benítez & Juan Pablo Solórzano-Margain, 2012. "An Empirical Study of the Mexican Banking System's Network and its Implications for Systemic Risk," Working Papers 2012-07, Banco de México.
    5. Langfield, Sam & Liu, Zijun & Ota, Tomohiro, 2014. "Mapping the UK interbank system," Journal of Banking & Finance, Elsevier, vol. 45(C), pages 288-303.
    6. Valeria Palanza & Carlos Scartascini & Mariano Tommasi, 2012. "On the Institutionalization of Congress(es) in Latin America and Beyond," IDB Publications (Working Papers) 4195, Inter-American Development Bank.
    7. repec:cbi:qtbart:y:2017:m:04:p:46-61 is not listed on IDEAS
    8. repec:cbi:qtbart:y:2017:m:04:p:81-95 is not listed on IDEAS
    9. repec:cbi:qtbart:y:2017:m:04:p:62-80 is not listed on IDEAS

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    Keywords

    network; topology; payment system; money market;

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