@techreport{452f3acc9aff4666a0447f1763bfbf17,
title = "Identifying Central Bank Liquidity Super-Spreaders in Interbank Funds Networks",
abstract = "We model the allocation of central bank liquidity among the participants of the interbank market by using network analysis{\textquoteright} metrics. Our analytical framework considers that a super-spreader simultaneously excels at receiving (borrowing) and distributing (lending) central bank{\textquoteright}s liquidity for the whole network, as measured by financial institutions{\textquoteright} hub centrality and authority centrality, respectively. Evidence suggests that the Colombian interbank funds market exhibits an inhomogeneous and hierarchical network structure, akin to a core-periphery organization, in which a few financial institutions fulfill the role of central bank{\textquoteright}s liquidity super-spreaders. Our results concur with evidence from other interbank markets and other financial networks regarding the flaws of traditional direct financial contagion models based on homogeneous and non-hierarchical networks. Also, concurrent with literature on lending relationships in interbank markets, we confirm that the probability of being a super-spreader is mainly determined by financial institutions{\textquoteright} size. We provide additional elements for the implementation of monetary policy and for safeguarding financial stability.",
keywords = "interbank, liquidity, monetary policy, financial stability, networks, super-spreader, central bank",
author = "C. Le{\'o}n and C. Machado and {Sarmiento Paipilla}, N.M.",
year = "2015",
month = nov,
day = "10",
language = "English",
volume = "2015-010",
series = "EBC Discussion Paper",
publisher = "EBC",
type = "WorkingPaper",
institution = "EBC",
}