01720cas a2200265 a 4500 AALejournalIMF014898 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498315548 1018-5941 BD-DhAAL BD-DhAAL Alter, Adrian. Centrality-based Capital Allocations / Adrian Alter, Ben Craig, Peter Raupach. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (40 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We look at the effect of capital rules on a banking system that is connected through correlated credit exposures and interbank lending. The rules, which combine individual bank characteristics and interconnectivity measures of interbank lending, are to minimize a measure of system-wide losses. Using the detailed German Credit Register for estimation, we find capital rules based on eigenvectors to dominate any other centrality measure, followed by closeness. Compared to the baseline case, capital reallocation based on the Adjacency Eigenvector saves about 15% in system losses as measured by expected bankruptcy costs. Mode of access: Internet Craig, Ben. Raupach, Peter. IMF Working Papers; Working Paper ; No. 2014/237 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/237/001.2014.issue-237-en.xml IMF e-Library