Using Multiplex Networks for Banking Systems Dynamics Modelling

The banking systems stability problem is complex and comprehensive. It is believed that the network topological features play a predominant role in banking system robustness. Existing research has investigated different sides of this relation; however, these studies do not take into account the durability of interbank and external interactions. The current paper proposes to place links to different layers of the multiplex network according to their durability. For this purpose an edge length concept reflecting the dynamical essence of the banking network is introduced. The offered approach is also applied to banks-with-customers interactions added to interbank links.