Leventides, JohnJohnLeventidesLoukaki, KalliopiKalliopiLoukakiPapavassiliou, Vassilios G.Vassilios G.Papavassiliou2019-01-302019-01-302018 Elsev2019-02Journal of Economic Behavior & Organization0167-2681http://hdl.handle.net/10197/9601The purpose of this study is to assess the resilience of financial systems to exogenous shocks using techniques drawn from the theory of complex networks. We investigate by means of Monte Carlo simulations the fragility of several network topologies using a simple default model of contagion applied on interbank networks of varying sizes. We trigger a series of banking crises by exogenously failing each bank in the system and observe the propagation mechanisms that take effect within the system under different scenarios. Finally, we add to the existing literature by analyzing the interplay of several crucial drivers of interbank contagion, such as network topology, leverage, interconnectedness, heterogeneity and homogeneity across bank sizes and interbank exposures.enThis is the author’s version of a work that was accepted for publication in Journal of Economic Behavior & Organization. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Economic Behavior & Organization (158, (2018)) https://doi.org/10.1016/j.jebo.2018.12.022Interbank congtagionRandom networksFinancial stabilityInterconectednessSystemic riskJournal Article15850052510.1016/j.jebo.2018.12.0172018-12-27https://creativecommons.org/licenses/by-nc-nd/3.0/ie/