Research On Mechanism Of Weak Ties Strength And Rich Node Assortativity In Complex Fund Networks

Due to the bank plays an very extensive role in society, it would have a verysignificant impact on economic activities. This shows that the bank has a special andplace in the financial system and even in the national economy. The Bank’s research isalso crucial as the importance to the financial system.With the development of the economy as well as the need to improve thecompetitiveness of business, the commercial bank not only improves the traditionalbusiness but also turning to the new and non-traditional business. As a result, itmaintains the financial intermediary role and gets the higher income. It also causes thebank has intriguing relations with other financial organizations which leads to theincrease of the uncertain issues. What’s more, the increase of the uncertain issues alsomeans the the increase of risks. Analysis of the risk of commercial banks is mostlyfocused on how to identify risk and control risk. It always dicusses the problem of thetransmission path of the commercial bank’s risk, scope of risk contagion, speed andaffecting factors. In recent years, it gradually began to study banks through thecomplex network. This paper depends on the complex network to study the fundnetwork which involves all financial organisations to analyzes consideration factors inthis complex fund network.This thesis is based on complex network theory and its application, thus, thecomplex financial network could be applied to the daily operation of the commercialbanks. We could introduce the concept of complex network with node assortativityand weak ties through the establishment of commercial bank funds network. We couldanalysis the flow of funds between financial companies and bank by constructing acommercial complex fund network. At the same time, we also could analysis thestrength of weak ties.We obtained the following conclusions through the research. First, the stability of commercial bank is related to the cost in complex financialnetwork. The cost of commercial bank which paid in the complex fund network isconnected with t confidence level between the bank and other financial companies.Second, the stability of commercial banks is positive correlated with the trustbetween the commercial banks and other financial companies. We can not judge thecorrelation between the cost of commercial banks and commercial banks’ stability.Third, the profitability of commercial bank products is connected with theconfidence level between the bank and other financial companies. We cannot judgethe relation between new products and confidence level between the bank and otherfinancial companies. The profitability of commercial bank is connected with theconfidence level between the bank and other financial companies.Through the further analysis, we find that in complex financial network, nodeswho have more degrees tend to gather. We could call it assortativity. Also, new nodesprefer to be connected with rich nodes. And therefore in the reality management, thecommercial bank should take the cooperative enterprises which have rich nodes intoconsideration. In that way we could discover exception and maintains the fundnetwork stability.