|Researchers:||Co-Pierre Georg, Jan Pieter Krahnen|
|Category:||Financial Markets, Macro Finance|
|Funded by:||Volkswagen Stiftung|
During the recent financial crisis, distress on interbank markets was one element that led major central banks to inject huge amounts of liquidity – not least via Quantitative Easing – into the financial system. In this project we empirically investigate the network topology, stability and liquidity on the Chinese interbank market over time. This analysis involves using and extending standard measures from complex system analysis to capture variations over time, distinguishing between regimes with relatively high and low interbank liquidity. The main contribution of this work package is to provide a first analysis of one of the most dynamic and important interbank markets in the face of financial liberalization during the global financial crisis.