Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 6th International Conference on Economic Management and Green Development (ICEMGD 2022), Part Ⅰ
Series Vol. 3 , 21 March 2023
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Reliability Analysis of Tree Topology based on Chinese Banking System
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Abstract
A tree topology is a special type of structure in which many connected elements are arranged like branches of a tree, and is often used to organize computers in a company's network, or information in a database. Tree topologies and Chinese banking system are both a highly centered and hierarchical structure, sharing a wide range of analogies. This article mainly studies the market value, under the circumstances of crossholdings, of individual banks in a banking system, as well as the reliability of the banks at different tiers of the supply chain. This paper analyzes how the network propagates the reliability discontinuities caused by faults. A tree topology model is exploited to facilitate the interpretation. In this model, each node has two branches and at each tier of the supply chain there is one leaf node that does not expand further. There are cross holdings within the same tier but not between adjacent tiers. This paper finds out the relationship of one’s reliability with the respective position in the financial network. Two variables are taken into consideration: the multisourcing number as well as the complexity amounting to the level in which it is.In a nutshell, the bigger the multisourcing number is, the greater the reliability is. Also, the higher it is in the financial network, the greater the reliability is. In addition, the endogenous configuration of supply network provides a new method for the study of China's banking system.
Keywords
crossholdings, networks, cascades, tree topology, reliability., financial networks, Chinese banking system
References
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 6th International Conference on Economic Management and Green Development (ICEMGD 2022), Part Ⅰ
- ISBN (Print)
- 978-1-915371-15-7
- ISBN (Online)
- 978-1-915371-16-4
- Published Date
- 21 March 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/3/2022877
- Copyright
- 21 March 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited