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VERSION:2.0
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BEGIN:VEVENT
DTSTAMP:20261020T025330Z
LAST-MODIFIED:20171120T195143Z
DTSTART:20171201T183000Z
DTEND:20171201T193000Z
UID:event1861@bu.edu
URL:http://physics.bu.edu/internal/events/show/1861
SUMMARY:Asset Contagion as a Source of Systemic Risk in Banking Networks
DESCRIPTION:Featuring Alexander Becker\n\nPart of the Departmental Seminars
	.\n\nCommittee: H. Eugene Stanley\, Irena Vodenska\, Kevin Black\, Bill Kle
	in\, Manher Jariwala\n\nAbstract:\n\nWe study the European banking system b
	y constructing a bipartite network of banks and assets\, observing that the
	 banks form a core-periphery structure with strong regional bias. We model 
	how common exposures\, for example portfolio overlap\, influence shock prop
	agation through the banking system. We show that the system as currently re
	gulated is robust to exogenous shocks as long as market participants are ra
	tional. However\, the current framework fails to protect the banking networ
	k from big losses if market participants become risk-averse. In fact\, the 
	system undergoes a phase transition in which the perceived asset risk is th
	e critical parameter.
LOCATION:SCI 352\, 590 Commonwealth Avenue\, 02215
STATUS:CONFIRMED
CLASS:PUBLIC
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