• University of New South Wales
  • Macquarie University
  • The University of Sydney
  • University of Technology Sydney
  • Australian National University
  • The University of Melbourne
  • Capital Markets
  • Sirca
  • Commonwealth Bank
  • KPMG
  • King & Wood Mallesons
  • Macquarie
  • Australian Government - Treasury
  • New South Wales Goverment

CIFR Research Project

Too Central to Fail: Financial Networks, Risks and Policy Responses - E233
Area of Interest: Systemic Risk  Lead Institution: UNSW Australia
Assessment Round: July 2013  Completion Date: 2016
Project Summary

The global financial crisis has called for a better understanding of financial market vulnerabilities and risks. Financial networks and their interactions with other sectors play a crucial role in determining the extent and pattern of these risks. The interbank loan market and credit markets are examples of network systems where an unanticipated negative shock may propagate and amplify its effect due to network connectedness. Improved knowledge of the structure of the Australian financial network and its connections with foreign and domestic sectors will help designing more effective policies to prevent or mitigate the negative effects of financial distress.  This project will build and investigate the properties of the networks of Australian banks and financial institutions in terms of their cross-exposures and exposures from foreign and domestic sectors of the economy. The analysis will be used to identify vulnerabilities and risks arising in Australian financial networks, and to guide regulators in designing better policies.

Team Leader:
Associate Professor Valentyn Panchenko | Associate Professor, School of Economics, Business School, UNSW Australia
Dr Mikhail Anufriev | Senior Lecturer, Economics, School of Economics, UTS Business School, University of Technology, Sydney
Assistant Professor Paolo Pin | Assistant Professor, Economics, Dipartimento di Economia Politica e Statistica, Università degli Studi di Siena
Project Outputs:


The Centre for International Finance and Regulation (CIFR) represents a strategic link between academia, financial regulators, policy makers and industry, promoting financial sector vibrancy, resiliency and integrity, through leading research and education.

CIFR receives funding and support from the Commonwealth and NSW Governments, and its industry, university and research centre partners.



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