Origin of instability in banking systems: Evidence from the C-P financial Contagion Model

1.This paper strictly proves that China's interbank market conforms to the core-periphery structure for the first time, and develops the world's leading agent model of interbank contagion based on C-P topology. Through numerical simulation, it is found that:The influence of the increase of inter-bank connection tightness brought by the core module on the system stability decreases first and then increases, while the increase of peripheral module can monotonically improve the system stability;There is always an optimal solution for the number of core banks, which makes the system have the best resilience stability and stability;The core bank should store the interbank assets in the core module as far as possible, so that the system will be more stable;When the proportion of its interbank assets in the total assets is lower than a certain threshold, the system will have resistance stability and achieve the best stability.Finally, in the imperfect CP network, we find out the special role of core and peripheral modules when they are wrongalone, and the different contributions to the system stability when they are wrong at the same time: Ensuring the absolute integrity of the core module structure is the prerequisite for the system to have a high level of resilience stability and stability;When the peripheral module transfers half of the inter-bank assets to itself, the stability of the system reaches its peak, and when it completely loses the active external link and forms an internal connected network, the stability of the resilience of the system will decline to the extreme.The core module error effect plays a decisive role in the global error effect of the system.2.These items are approved by python3.0 and above.