Figure 2. Comparison of the normal mode (red), i.e. random selection of counterparty for IB loans, with the transparent IB market (blue), where the order of counterparty selection is determined by the inverse DebtRank.

The fast mode is shown in green. (a) Distribution of total losses to banks , (b) distribution of cascade sizes of defaulting banks, and (c) distribution of transaction volume in the IB market . We performed 10,000 independent, identical simulations, each with 500 timesteps, 100 banks, and the simulation parameters given in SI Table I. A is a fully connected graph.