Credit Risk Contagion Model Based on Financial Industry Clusters Financial industry clusters have been a new trend in modern economic development, and also provide potential channels for risk contagion among the financial system. The current credit risk contagion models mainly study the impact of the interconnectedness of the whole network on risk contagion, still lack consideration of the local risk exposuresu0027 characteristics under the impact of financial industry clusters. In view of this, we propose a credit risk contagion model based on financial industry clusters and analyze a scalefree financial network according to institution balance sheet. We detect financial industry clusters by identifying systemically important financial institutions. And by calculating the default probability of the institution in clusters, we propose a xe2x80x9ccluster contagion indexxe2x80x9d to assess the impact of local risk exposures on contagion. We verify the rationality of the model by comparing the default extent after the risk contagion under different network scales and different initial shocking scopes. The results of our model also highlight the impact that heterogeneous connectivity in clusters to magnify shocks, which will be significant for financial market regulators.

An Optimizing Strategy Based on Resource Competing Coupling Model in Interbank Risk Contagion In interbank networks, creditor banks tend to gain appreciation in asset value by borrowing liquid assets to debtor banks. Meanwhile, funds shortage leads debtor banks competing for the liquid asset, which forms a typical resource competing coupling relationship that affects the whole system. Existing research on interbank risk contagion mainly under the hypothesis that systemic risk in interbank network has accumulated to the threshold, so the behavior of banks in the accumulate process is regarded as static. it ignores the active behavior that derived from resource competing between banks. Therefore, this paper proposes a novel coupling relationship based on resource competing between banks, which takes the liquid assets as constraint, aimed to find proper ways to allocation liquid assets of creditor banks. We further study the influence of resource competing on the risk contagion of interbank network. Then, a network resource optimizing strategy is proposed to control the risk under different initial conditions.