RBA paper proposes new method of mapping the banking network

“Density-based” approach helps overcome shortcomings of other methods, authors say

Neural network

Researchers at the Reserve Bank of Australia have outlined a new method of estimating the shape of the core and periphery of the country’s banking network, which they believe overcomes problems with other approaches.

Anthony Brassil and Gabriela Nodari test various methods of estimating the core/periphery structure of the banking network, noting no real network will neatly conform to the idealised notion: “We find that existing estimators can provide wildly varying and inaccurate estimates in

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