New research analyses relationship between banks interconnectivity and leverage

The Central Bank has published a new Research Technical Paper by Alessandro Barattieri, Laura Moretti, and Vincenzo Quadrini on ‘Banks Interconnectivity and Leverage’.

• Strong link between financial interconnectivity and leverage across countries, across institutions and over time.
• Paper uses balance sheet data for over 14,000 financial intermediaries in 32 OECD countries.
• The theoretical model can capture the dynamics of leverage and interconnectivity observed in the data.

The Research Technical Paper is available here.

Note

The views presented in Research Technical Papers are those of the authors alone and do not necessarily represent the official views of the Central Bank of Ireland.

All Research Technical Papers are published here.