Interbank Lending Decisions in An Economic Downturn: An Agent-Based Approach
<p>Interbank lending is one mechanism that can make shock, which is accepted by one bank spread to other banks (contagion). There are several researchers that focused their research on analyzing the effect of interbank lending to systemic risk. However, there is a few research that analyzed th...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Institut Teknologi Bandung
2012-01-01
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| Series: | Asian Journal of Technology Management |
| Online Access: | http://journal.sbm.itb.ac.id/index.php/ajtm/article/view/162 |
| _version_ | 1818055036891037696 |
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| author | Deddy P. Koesrindartoto Erdi Novanto |
| author_facet | Deddy P. Koesrindartoto Erdi Novanto |
| author_sort | Deddy P. Koesrindartoto |
| collection | DOAJ |
| description | <p>Interbank lending is one mechanism that can make shock, which is accepted by one bank spread to other banks (contagion). There are several researchers that focused their research on analyzing the effect of interbank lending to systemic risk. However, there is a few research that analyzed the effect of banks’ decision maker’s behavior, especially on the bank interbank lending to the systemic risk. In this research, the author creates an agent-based simulation of the banking system to analyze the effect of banks’ decision maker’s behavior to systemic risk in economic downturn condition. The preliminary result from this research is for an economic downturn in a long time period, the banking system with a low net worth to the asset's ratio threshold will produce more default bank than the banking system with a high net worth to the asset's ratio threshold. However, for an economic downturn in small time period, banking system which all bank in their system has the higher net worth to assets ratio threshold will have the default bank first than the banking system which has the lower net worth to the asset's ratio threshold.</p> <p><em> </em></p> <p><em> </em></p> <em>Keywords: agent-based simulation, banker behavior, interbank lending, economic downturn</em> |
| first_indexed | 2024-12-10T12:06:34Z |
| format | Article |
| id | doaj.art-2ebea4d397f2461ebea508e391624633 |
| institution | Directory Open Access Journal |
| issn | 1978-6956 2089-791X |
| language | English |
| last_indexed | 2024-12-10T12:06:34Z |
| publishDate | 2012-01-01 |
| publisher | Institut Teknologi Bandung |
| record_format | Article |
| series | Asian Journal of Technology Management |
| spelling | doaj.art-2ebea4d397f2461ebea508e3916246332022-12-22T01:49:27ZengInstitut Teknologi BandungAsian Journal of Technology Management1978-69562089-791X2012-01-0141154Interbank Lending Decisions in An Economic Downturn: An Agent-Based ApproachDeddy P. Koesrindartoto0Erdi Novanto1School of Business and Management, Institut Teknologi BandungSchool of Business and Management, Institut Teknologi Bandung<p>Interbank lending is one mechanism that can make shock, which is accepted by one bank spread to other banks (contagion). There are several researchers that focused their research on analyzing the effect of interbank lending to systemic risk. However, there is a few research that analyzed the effect of banks’ decision maker’s behavior, especially on the bank interbank lending to the systemic risk. In this research, the author creates an agent-based simulation of the banking system to analyze the effect of banks’ decision maker’s behavior to systemic risk in economic downturn condition. The preliminary result from this research is for an economic downturn in a long time period, the banking system with a low net worth to the asset's ratio threshold will produce more default bank than the banking system with a high net worth to the asset's ratio threshold. However, for an economic downturn in small time period, banking system which all bank in their system has the higher net worth to assets ratio threshold will have the default bank first than the banking system which has the lower net worth to the asset's ratio threshold.</p> <p><em> </em></p> <p><em> </em></p> <em>Keywords: agent-based simulation, banker behavior, interbank lending, economic downturn</em>http://journal.sbm.itb.ac.id/index.php/ajtm/article/view/162 |
| spellingShingle | Deddy P. Koesrindartoto Erdi Novanto Interbank Lending Decisions in An Economic Downturn: An Agent-Based Approach Asian Journal of Technology Management |
| title | Interbank Lending Decisions in An Economic Downturn: An Agent-Based Approach |
| title_full | Interbank Lending Decisions in An Economic Downturn: An Agent-Based Approach |
| title_fullStr | Interbank Lending Decisions in An Economic Downturn: An Agent-Based Approach |
| title_full_unstemmed | Interbank Lending Decisions in An Economic Downturn: An Agent-Based Approach |
| title_short | Interbank Lending Decisions in An Economic Downturn: An Agent-Based Approach |
| title_sort | interbank lending decisions in an economic downturn an agent based approach |
| url | http://journal.sbm.itb.ac.id/index.php/ajtm/article/view/162 |
| work_keys_str_mv | AT deddypkoesrindartoto interbanklendingdecisionsinaneconomicdownturnanagentbasedapproach AT erdinovanto interbanklendingdecisionsinaneconomicdownturnanagentbasedapproach |