Publication

Since the onset of the global financial crisis, the analysis of network structures formed by interbank liabilities has received increasing attention. Previous literature on statistical properties of interbank loans has reported various power-laws, particularly for the degree distribution (i.e. the distribution of credit links between institutions). This paper revisits data for the Italian interbank network based on overnight loans recorded on the e-MID trading platform during the period 1999-2010 using both daily and quarterly aggregates. In contrast to previous studies, it finds no evidence in favor of power-law behavior casting doubts on the claim that interbank data fall into the category of scale-free networks.