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WITHDRAWN COVID-19 and Financial News: Using Text Analytics to Assess Bank Networks During Crisis (309677)

Sophia Kazinnik, Federal Reserve Bank of Richmond 

Keywords: Bank Networks, Text Analysis, Systemic Risk, COVID-19, Financial Stability

This paper investigates relationships among Dodd-Frank Act Stress Tests (DFAST) bank holding companies (BHCs) by analyzing how they are mentioned together in financial news discourse in the context of COVID-19 pandemic.

As a first step, we build text based co-occurrence network matrix among DFAST BHCs using textto-network approach build upon Ronnqvist and Sarlin [2015]. Then, using network analysis and topic modeling, we study the implications of the interconnectedness along the systemic dimension. Finally, we propose a complementary measure to systemic risk based on centrality measures we develop and study financial stability implications of this new measure.