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Economic Commentary

Interbank Exposure in the Fourth Federal Reserve District

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Contagion risk in the banking system - the sensitivity of a bank to the failure of another bank - is a source of public policy concern. It is especially a problem when the failure of one bank, or a limited number of banks, causes multiple failures in the banking system. Significant contagion effects have public policy implications both for the way banks are regulated and for the solvency of federal deposit insurance funds.

08.01.1987ISSN 2163-3738 EC 8/1/1987

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This paper and its data are subject to revision; please visit clevelandfed.org for updates.

Suggested Citation

Thomson, James B. 1987. “Interbank Exposure in the Fourth Federal Reserve District.” Federal Reserve Bank of Cleveland, Economic Commentary 8/1/1987.

This work by Federal Reserve Bank of Cleveland is licensed under Creative Commons Attribution-NonCommercial 4.0 International