Explanipedia

Do Market-Based Networks Reflect True Exposures between Banks? Open

Ben R. Craig, Madina Karamysheva, Dilyara Salakhova · 2023

Constructing banking networks under decreasing costs of link formation Open

Dietmar Maringer, Ben R. Craig, Sandra Paterlini · 2021

The structure of networks plays a central role in the behavior of financial systems and their response to policy. Real-world networks, however, are rarely directly observable: banks’ assets and liabilities are typically known, but not who …

Two Approaches to Predicting the Path of the COVID-19 Pandemic: Is One Better? Open

Ben R. Craig, Thomas Phelan, Jan-Peter Siedlarek, Jared Steinberg · 2021

We compare two types of models used to predict the spread of the coronavirus, both of which have been used by government officials and agencies. We describe the nature of the difference between the two approaches and their advantages and l…

Modeling Behavioral Responses to COVID-19 Open

Ben R. Craig, Thomas Phelan, Jan-Peter Siedlarek · 2021

Many models have been developed to forecast the spread of the COVID-19 virus. We present one that is enhanced to allow individuals to alter their behavior in response to the virus. We show how adding this feature to the model both changes …

How Well Does the Cleveland Fed’s Systemic Risk Indicator Predict Stress? Open

Ben R. Craig · 2020

A number of financial stress measures were developed after the financial crisis of 2007–2009 in the hope that they could provide regulators with advance warning of conditions that might warrant a corrective response. The Cleveland Fed’s sy…

Improving Epidemic Modeling with Networks Open

Ben R. Craig, Thomas Phelan, Jan-Peter Siedlarek, Jared Steinberg · 2020

Many of the models used to track, forecast, and inform the response to epidemics such as COVID-19 assume that everyone has an equal chance of encountering those who are infected with a disease. But this assumption does not reflect the fact…

Intermediation in the Interbank Lending Market Open

Ben R. Craig, Yiming Ma · 2020

This paper studies systemic risk in the interbank market. We first establish that in the German interbank lending market, a few large banks intermediate funding flows between many smaller periphery banks and that shocks to these intermedia…

The Effect of Possible EU Diversification Requirements on the Risk of Banks’ Sovereign Bond Portfolios Open

Ben R. Craig, Margherita Giuzio, Sandra Paterlini · 2020

The Souk al-Manakh Crash Open

Ben R. Craig · 2019

From 1978 to 1981, Kuwait’s two stock markets, one the conservatively regulated “official” market and the other the unregulated Souk al-Manakh, exploded in size, growing to the point where the amount of capital actively traded exceeded tha…

Re-Creating Banking Networks under Decreasing Fixed Costs Open

Dietmar Maringer, Ben R. Craig, Sandra Paterlini · 2019

Theory emphasizes the central role of the structure of networks in the behavior of financial systems and their response to policy. Real-world networks, however, are rarely directly observable: Banks’ assets and liabilities are typically kn…

Bitcoin’s Decentralized Decision Structure Open

Ben R. Craig, Joseph Kachovec · 2019

With the introduction of bitcoin, the world got not just a new currency, it also got evidence that a decentralized control structure could work in practice for institutional governance. This Commentary discusses the advantages and disadvan…

The Effect of Possible EU Diversification Requirements on the Risk of Banks' Sovereign Bond Portfolios Open

Ben R. Craig, Margherita Giuzio, Sandra Paterlini · 2019

Recent policy discussion includes the introduction of diversification requirements for sovereign bond portfolios of European banks. In this paper, we evaluate the possible effects of these constraints on risk and diversification in the sov…

The Effect of Possible EU Diversification Requirements on the Risk of Banks' Sovereign Bond Portfolios Open

Ben R. Craig, Margherita Giuzio, Sandra Paterlini · 2019

Recreating Banking Networks under Decreasing Fixed Costs Open

Dietmar Maringer, Ben R. Craig, Sandra Paterlini · 2019

Intermediation in the Interbank Lending Market Open

Ben R. Craig, Yiming Ma · 2018

Payments Delay: Propagation and Punishment Open

Ben R. Craig, Dilyara Salakhova, Martín Saldías · 2018

The Federal Funds Market since the Financial Crisis Open

Ben R. Craig, Sara Millington · 2017

Before the financial crisis, the federal funds market was a market in which domestic commercial banks with excess reserves would lend funds overnight to other commercial banks with temporary shortfalls in liquidity. What has happened to th…

Effects of Diversification and Capital Buffers on the EU Sovereign-Bank Network Open

Margherita Giuzio, Ben R. Craig, Sandra Paterlini · 2017

Spatial Dependence and Data-Driven Networks of International Banks Open

Ben R. Craig, Martín Saldías · 2016

This paper computes data-driven correlation networks based on the stock returns of international banks and conducts a comprehensive analysis of their topological properties. We first apply spatial-dependence methods to filter the effects o…

Spatial Dependence and Data-Driven Networks of International Banks Open

Ben R. Craig, Martín Saldías · 2016

This paper computes data-driven correlation networks based on the stock returns of international banks and conducts a comprehensive analysis of their topological properties. We first apply spatial-dependence methods to filter the effects o…

Spatial Dependence and Data-Driven Networks of International Banks Open

Ben R. Craig, Martín Saldías · 2016

Credit Market Information Feedback Open

Lakshmi Balasubramanyan, Ben R. Craig, James B. Thomson, Saeed Zaman · 2015

We examine how a combination of credit market and asset quality information can jointly be used in assessing bank franchise value. We find that expectations of future credit demand and future asset quality explain contemporaneous bank fran…

Excess Reserves: Oceans of Cash Open

Ben R. Craig, Matthew Koepke · 2015

Excess reserves—cash funds held by banks over and above the Federal Reserve's requirements—have grown dramatically since the financial crisis. Holding excess reserves is now much more attractive to banks because the cost of doing so is low…

Centrality-based Capital Allocations Open

Adrian Alter, Ben R. Craig, Peter Raupach · 2015

This paper looks at the effect of capital rules on a banking system that is connected through correlated credit exposures and interbank lending. Keeping total capital in the system constant, the reallocation rules, which combine individual…

Centrality-based Capital Allocations Open

Adrian Alter, Ben R. Craig, Peter Raupach · 2015

This paper looks at the effect of capital rules on a banking system that is connected through correlated credit exposures and interbank lending. Keeping total capital in the system constant, the reallocation rules, which combine individual…

Centrality-Based Capital Allocations Open

Adrian Alter, Ben R. Craig, Peter Raupach · 2015

Credit Market Information Feedback Open

Lakshmi Balasubramanyan, Ben R. Craig, James B. Thomson, Saeed Zaman · 2015

Intraday Liquidity and Delays in the European Payments System Open

Ben R. Craig · 2015

Parallel Sessions D: Systemic Risk Measurements and Networks

Centrality-Based Capital Allocations Open

Adrian Alter, Ben R. Craig, Peter Raupach · 2015

Centrality-Based Capital Allocations Open

Adrian Alter, Ben R. Craig, Peter Raupach · 2015

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