The Topology Of Interbank Network Flows
The Federal Reserve Bank of New York has published a staff paper titled “The Topology of Interbank Payment Flows,” (PDF) by Kimmo Soramäki, Morten L. Bech, Jeffrey Arnold, Robert J. Glass, and Walter E. Beyeler.
The authors explore the network topology of the interbank payments transferred between commercial banks over the Fedwire Funds Service. They find that the network is compact despite low connectivity. The network includes a tightly connected core of money-center banks to which all other banks connect. The degree distribution is scale-free over a substantial range. The authors find that the properties of the network changed considerably in the immediate aftermath of the attacks of September 11, 2001.
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