The Stability of Banking System Based on Network Structure: An Overview

Abstract

The global financial crisis triggered by the US subprime mortgage crisis in 2008 has caused serious impact on the financial system around the world, which also aggravated the banking system. Since the banking industry is the core element of financial system, various scholars and relevant regulatory authorities have paid attention to the stability of the banking system. Unlike the traditional qualitative research, many scholars have adopted the method of computational finance based on the complex network theory to explore the banking system in recent years. Therefore, this paper has carried out a literature review of the stability of banking system under different network structures. It presents the analysis of model and results so as to have a clear understanding on the topic.