The Dynamic of Banking Network Topology Case Study: Indonesian Presidential Election Event

摘要

Information and communication technologies have brought major changes in data storage and processing. Various types and high volume of data has been digitalized and support mining-based data processing to provide knowledge in a modern and efficient way. Banking transaction data has been stored digitally and suitable for the mining process especially in network science model. Understanding transaction system risk requires fundamental study on payments flow and bank behavior in various situations. Lehman Brother’s failure spread contagion impact in a short time indicates that financial markets have interdependent properties and connected to each other in a large network. Thus, overall system network approach becomes more important than a single bank. Political conditions greatly affect economic stability including the banking and financial sectors. Presidential election is a major political event for a nation. This affected on community sentiment and financial market. However, the linkage between political events and topological changes is poorly understood. This research presents an insight of the event driven dynamic network topology with banking transaction as a case study. We search for the banking transaction network topology dynamic driven by 2014 Indonesian presidential election event. We discover that banks are more engaged to others in larger value 3 days before the end of campaign period and less engaged to others in smaller value in the end of campaign period. Unique transaction activity between banks remain stable with low declination in the end of campaign period. This scenario provides the possibility to learn the banking transaction pattern and support the financial system stability supervision.