SupTech: Network Analysis of Interbank Exposures

Systemic risk is fundamentally a network phenomenon, driven by the interconnectedness of financial institutions through payment obligations, funding markets, and derivatives exposures. This advanced **Supervisory Technology (SupTech)** course equips regulators and central bank analysts with the tools of **Network Analysis** (also known as Graph Theory) to map, quantify, and simulate contagion within the financial system. Participants will learn how to construct interbank exposure matrices from regulatory and payment data, use sophisticated metrics to identify systemically important institutions ("too-connected-to-fail"), and model the cascade effect of a bank default across the network. The program moves beyond simple aggregate statistics to provide a granular, dynamic view of interconnectedness, allowing for more targeted and preemptive supervisory interventions in line with global best practices for macro-prudential oversight.