Financial regulators in Venezuela reduce systemic risk in interbank market.
The article examines systemic risk in the Venezuelan interbank market from 2004 to 2014. By analyzing bank connections and funding patterns, the researchers found that after a financial adjustment in 2009, market connectivity decreased, reducing systemic risk. However, funding patterns changed, indicating that core banks increased their liquidity needs, which raised systemic risk. The study also identified banks that need closer supervision by regulators.