Bilateral risk in savings and loan holding companies: an econophysics framework for analyzing network resilience

<p dir="ltr">IA is calculated from Total Assets (ASSET), Real estate loans (LNRE), Farm loans (LNAG), and Loans to Individuals (LNCON) from the balance sheet. IL is calculated from Total Deposits (DEP), Deposits of individuals with account balances of $250,000 or less (DEPSMAMT), and Cash and Balances due from Depository Institutions (CHBAL) from the balance sheet. <p dir="ltr">Employing actor-network theory, this study introduces a dynamic econophysics framework for bilateral risk analysis within SLHCs. Utilizing a maximum entropy model on the annual balance sheets of 147 US. SLHCs from 2013 to 2023, constructs intercompany funding and exposure networks using intercompany assets and liabilities data. Two algorithms are utilized to extract core-periphery network features, assessing optimal linkages and disruptions from external shocks. Expanding on previous research, additional core-periphery network features are incorporated. This study provides a comprehensive structural analysis at the node, edge, and graph levels, offering valuable insights into risk evolution in financial networks over time. <p dir="ltr">Wang, H. (2025). Bilateral risk in savings and loan holding companies: an econophysics framework for analyzing network resilience. <i>Applied Economics</i>, 1–17. https://doi.org/10.1080/00036846.2025.2461328