Analysis of risk (Chan-Lau)

IMF published the Balance sheet network analysis of Too-Connected-to-Fail risk in global and domestic banking by Jorge A. Chan-Lau. This paper illustrates the use of balance sheet-based network analysis to evaluate interconnectedness risk, under extreme adverse scenarios, in banking systems in mature and emerging market countries, and between individual banks in Chile, an advanced emerging market economy. see:http://www.imf.org/external/pubs/ft/wp/2010/wp10107.pdf