Before revision:  We show that network effects  generate an amplification of exogenous shocks of a factor ranging between three (in normal periods) and six (during the crisis) , when we stress the system with a 0.5\% shock on external (i.e. non-interbank) assets for all banks.
After revision:  We show that network effects can generate an amplification of exogenous shocks of a factor ranging between three (in normal periods) and six (during the crisis) , when we stress the system with a 0.5\% shock on external (i.e. non-interbank) assets for all banks.