HomeSociety & EconomicsInterbank Networks and Financial Contagion

🏦 Interbank Networks and Financial Contagion

Interactive 3D network of banks connected by simulated lending exposures where triggering a single bank default shows contagion propagating or getting contained across the network.

Society & Economics3DAdvanced60 FPS
interbank-contagion-network-lab ↗ Open standalone

A 3D network of banks linked by simulated lending exposures, where triggering one bank's default lets you watch losses propagate — or get contained — across the interbank web.

🔬 What It Demonstrates

When a bank defaults, its interbank creditors absorb a loss on their exposure to it. If that loss exceeds a creditor's own capital buffer, it defaults too — cascading through the network in rounds until losses are absorbed or the whole system fails.

🎮 How to Use

Adjust network size, interconnectedness, capital buffers and loss-given-default, then click any bank (or use the trigger button) to fail it and watch the contagion round-by-round.

💡 Did You Know?

After Lehman Brothers collapsed in 2008, regulators began explicitly modelling these interbank exposure networks in stress tests to estimate how far a single failure could spread.

⚙ Under the hood

Interactive 3D network of banks connected by simulated lending exposures where triggering a single bank default shows contagion propagating or getting contained across the network.

interbank-networksfinancial-contagionsystemic-riskeconomicsnetwork-theorysociety

3D · Three.js / WebGL renderer · 60 FPS target · runs fully client-side, no install

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