Identifying Systemically Important Companies by Using the Credit Network of an Entire Nation

15540 8 85467 2 240262 document 85467 entropy-20-00792.pdf application/pdf 7468ba116b2368abf21964ea00df68fd MD5 5643555 2018-10-18 14:44:58 https://pure.iiasa.ac.at/id/eprint/15540/1/entropy-20-00792.pdf 15540 1 1 application/pdf text en public cc_by_4

entropy-20-00792.pdf

published 85468 1 240274 document 85468 indexcodes.txt text/x-c++ a2049bd79814b6272dd92d78606c0ea5 MD5 9034 2018-10-18 14:54:59 https://pure.iiasa.ac.at/id/eprint/15540/2/indexcodes.txt 15540 2 2 text/x-c++ other Generate index codes conversion from text to indexcodes en public

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http://eprints.org/relation/isVersionOf https://pure.iiasa.ac.at/id/document/85467 http://eprints.org/relation/isVolatileVersionOf https://pure.iiasa.ac.at/id/document/85467 http://eprints.org/relation/issmallThumbnailVersionOf https://pure.iiasa.ac.at/id/document/85467 archive 353 disk0/00/01/55/40 2018-10-18 14:46:23 2021-08-27 17:30:56 2018-10-18 14:46:23 article show Poledna S. 2083 Hinteregger A. Thurner S. 1918 Identifying Systemically Important Companies by Using the Credit Network of an Entire Nation pub prog_asa prog_risk credit network; systemic importance; bank-firm network; interbank network; systemic risk; financial regulation; contagion The notions of systemic importance and systemic risk of financial institutions are closely related to the topology of financial liability networks. In this work, we reconstruct and analyze the financial liability network of an entire economy using data of 50,159 firms and banks. Our analysis contains 80.2% of the total liabilities of firms towards banks and all interbank liabilities in the Austrian banking system. The combination of firm-bank networks and interbank networks allows us to extend the concept of systemic risk to the real economy. In particular, the systemic importance of individual companies can be assessed, and for the first time, the financial ties between the financial and the real economy become explicitly visible. We find that firms contribute to systemic risk in similar ways as banks do. We identify a set of mid-sized companies that carry substantial systemic risk. Their default would affect up to 40% of the Austrian financial market. We find that all firms together create more systemic risk than the entire financial sector. In 2008, the total systemic risk of the Austrian interbank network amounted to only 29% of the total systemic risk of the entire financial network consisting of firms and banks. The work demonstrates that the notions of systemically important financial institutions (SIFIs) can be directly extended to firms. 2018-10-16 published Molecular Diversity Preservation International (MDPI) 10.3390/e20100792 235 307 public Entropy 20 10 792 FALSE 1099-4300 FALSE no info:eu-repo/semantics/article