financial networks
Financial networks refer to the interconnected systems and relationships among various financial institutions, markets, and participants. These networks facilitate the flow of capital, information, and services, enabling businesses and individuals to access funding, investment opportunities, and financial products. Key players in these networks include banks, investment firms, insurance companies, and regulatory bodies.
The structure of financial networks can influence economic stability and growth. For instance, when a major institution like Lehman Brothers fails, it can create ripple effects throughout the network, impacting other entities and the broader economy. Understanding these networks helps policymakers and analysts assess risks and develop strategies for financial resilience.