Argentina | Credit networks and systemic risk through the lens of hypergraphs

Summary

This Working Paper provides the first analysis of credit relationships between financial institutions and firms through the lens of hypergraphs. We applied empirically this approach to Credit Registry data from the Central Bank of Argentina, covering the period from Aug. 2023 to Dec. 2025 and focusing on commercial loans.

Key points

• Key points:
• Unlike traditional network approaches, which rely on pairwise connections, the framework proposed in this paper explicitly represents the shared exposure of multiple financial institutions to the same firm as a simultaneous multilateral relationship.
• Traditional centrality metrics are compared with hypergraph-specific measures to identify systemically relevant institutions.
• The Working Paper also proposes an adjusted version of H-eigenvector centrality that nonlinearly weights both the centrality of neighboring institutions and each creditor’s lending amount, in order to assess the relevance of a bank within the network.
• The systemic impact of shocking the top-ranked institutions according to each centrality metric is then estimated through an adaptation of the DebtRank algorithm.
• The results show that the proposed framework identifies institutions with greater shock-amplification capacity, providing a complementary tool for financial supervision and regulation.

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