http://www.bis.org/cbhub/list/author/author_3784/index.rss Research hub papers by author Carmela Iazzetta en http://www.bancaditalia.it/pubblicazioni/econo/temidi/td09/td711_09/td_711_09_en/en_tema_711.pdf Bank of Italy Working Papers by Michele Manna and Carmela Iazzetta The topology of the interbank market: developments in Italy since 1990 2009-06-15T17:38:59Z When a bank defaults or stops trading in the interbank market, both a liquidity shortage in the market itself and mounting trading losses should be anticipated. To gain more insight into the way a liquidity crisis spreads, we apply network topology techniques to monthly data on deposits exchanged by Italian banks, from 1990 to 2008. Our research yields three main results: first, only a few banks are today pivotal in the redistribution of liquidity across the system, while banks close to, but outside this core circle, weigh less than they used to; secondly, the halt in operations in a second set of banks may cut off some of their counterparts from the rest of the network, with increasingly less negligible effects; finally, only 2-3 banks out of the 10 we identify as most interconnected within the network are currently also among the top 10 banks by volume of traded deposits. The topology of the interbank market: developments in Italy since 1990 2009-06-15T17:38:59Z Abstract http://www.bancaditalia.it/pubblicazioni/econo/temidi/td09/td711_09/td_711_09_en Full text http://www.bancaditalia.it/pubblicazioni/econo/temidi/td09/td711_09/td_711_09_en/en_tema_711.pdf Carmela Iazzetta Michele Manna Michele Manna and Carmela Iazzetta 2009-05 Bank of Italy Working Papers