Marco D’Errico

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Marco D’Errico

Financial Stability

Bank of Canada
234 Wellington Street
Ottawa, ON, K1A 0G9

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Interconnected Banks and Systemically Important Exposures

How do banks' interconnections in the euro area contribute to the vulnerability of the banking system? We study both the direct interconnections (banks lend to each other) and the indirect interconnections (banks are exposed to similar sectors of the economy). These complex linkages make the banking system more vulnerable to contagion risks.
Content Type(s): Staff Research, Staff Working Papers Topic(s): Financial stability JEL Code(s): C, C6, C63, G, G1, G15, G2, G21

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