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Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series

Network structure of banking sector in Bulgaria

Petar Nikolov


The report presents a relatively new approach to analyzing structure and sustainability of banking sector in Bulgaria. Based on direct interbank linkages, banking system is modeled as a network consisting of a core and peripheral layers. It helps to identify systemically important banks (forming the core) and evaluate to what extent their critical mass and stability are vital to the integrity of the network. In addition, emphasis is placed on ongoing mergers and acquisitions and their effect on network structure and stability of banking sector.


networks, network structure, direct linkages, core and periphery

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