Systemic risk assessment through high order clustering coefficient

In this article we propose a novelmeasure of systemic risk in the context of financial networks.\r\nTo this aim, we provide a definition of systemic riskwhich is based on the structure, developed\r\nat different levels, of clustered neighbours around the nodes of the network. The proposed\r\nmeasure incorporates the generalized concept of clustering coefficient of order l of a node i\r\nintroduced in Cerqueti et al. (2018). Its properties are also explored in terms of systemic risk\r\nassessment. Empirical experiments on the time-varying global banking network show the\r\neffectiveness of the presented systemic risk measure and provide insights on how systemic\r\nrisk has changed over the last years, also in the light of the recent financial crisis and the\r\nsubsequent more stringent regulation for globally systemically important banks.