Digital Payments in Firm Networks: Theory of Adoption and Quantum Algorithm Staff working paper 2024-17 Sofia Priazhkina, Samuel Palmer, Pablo Martín-Ramiro, Román Orús, Samuel Mugel, Vladimir Skavysh We build a network formation game of firms with trade flows to study the adoption and usage of a new digital currency as an alternative to correspondent banking. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C6, C7, C71, D, D4, D8, D85, G, L, L2, L22 Research Theme(s): Models and tools, Economic models, Money and payments, Digital assets and fintech, Payment and financial market infrastructures
Retrieving Implied Financial Networks from Bank Balance-Sheet and Market Data Staff working paper 2017-30 Jose Fique In complex and interconnected banking systems, counterparty risk does not depend only on the risk of the immediate counterparty but also on the risk of others in the network of exposures. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C6, C63, D, D8, D85, G, G2, G21 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial institutions and intermediation, Financial stability and systemic risk
Information Sharing and Bargaining in Buyer-Seller Networks Staff working paper 2016-63 Sofia Priazhkina, Frank H. Page This paper presents a model of strategic buyer-seller networks with information exchange between sellers. Prior to engaging in bargaining with buyers, sellers can share access to buyers for a negotiated transfer. We study how this information exchange affects overall market prices, volumes and welfare, given different initial market conditions and information sharing rules. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C7, C71, C78, D, D2, D21, D4, D43, D8, D85, L, L1, L13 Research Theme(s): Financial markets and funds management, Market functioning, Market structure
A Microfounded Design of Interconnectedness-Based Macroprudential Policy Staff working paper 2016-6 Jose Fique To address the challenges posed by global systemically important banks (G-SIBs), the Basel Committee on Banking Supervision recommended an “additional loss absorbency requirement” for these institutions. Along these lines, I develop a microfounded design of capital surcharges that target the interconnectedness component of systemic risk. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D8, D82, D85, G, G2, G21, G28 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial stability and systemic risk, Financial system regulation and oversight, Models and tools, Economic models