Assessing Financial Contagion in the Interbank Market: Maximum Entropy Versus Observed Interbank Lending Patterns

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An empirical study of the Mexican banking system’s network and its implications for systemic risk (2012, positive): “Unfortunately, this principle might be the cause of the underestimation of contagion, and as a consequence, of systemic risk as has been clearly demonstrated in Mistrulli (2007).”
Too Interconnected to Fail: A Survey of the Interbank Networks Literature (2015, background): “Mistrulli (2011) shows that for the Italian banking system the 11 create unrealistically dense networks, and therefore fail to capture all of the dynamics.26 There are other explanations as to why we never have observed a default due to losses on the interbank market.”