Network structure of Turkish interbank market

Date
2022-12-01
Advisor
Supervisor
Co-Advisor
Co-Supervisor
Instructor
Source Title
Central Bank Review
Print ISSN
13030701
Electronic ISSN
Publisher
Elsevier B.V.
Volume
22
Issue
4
Pages
149 - 161
Language
English
Type
Article
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Abstract

Global financial crisis has shown the importance of understanding the structure of interbank relations. In this study, we investigate the network relations based on interbank exposures in Türkiye. We estimate several network statistics and document how the network relations have changed over the time period of 2002–2021. We find that the network structures vary substantially by financial instruments such as repo, deposit, loan, security issuances, derivatives and other off-balance sheet items showing the significance of covering all type of exposures in network analysis. Using network statistics, we show that Turkish interbank network structure shows a core-periphery structure which is found to be more resilient during stress times in the literature. Finally, we find that larger banks are characterized as having higher network centrality measures as degree, clustering coefficient and closeness centrality showing the importance of these banks in terms of intermediation and substitutability.

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Book Title
Keywords
Network analysis, Financial interconnectedness
Citation
Published Version (Please cite this version)