How does risk information dissemination affect risk contagion in the interbank market?

ABSTRACT: This paper distinguishes between local and global risk information and disaggregates risk information dissemination in the interbank market based on specified behavioural mechanisms: information disclosure and transmission, information acquisition and decision-making. It then explores the mechanisms whereby such dissemination affects risk contagion in the interbank market and verifies through computational simulations how risk information dissemination, banks' information acquisition capability, and information disclosure strategies affect risk contagion in the interbank market. The study shows that risk information dissemination markedly increases-and greater bank information acquisition capability reduces-the scope of contagion in the interbank market. Moreover, the greater the tendency

SUBMITTER: Li Z 

PROVIDER: S-EPMC9312419 | biostudies-literature | 2022

REPOSITORIES: biostudies-literature