Prudential regulation in an artificial banking system

Artikel

This study is an exploratory analysis of the economic role of banks under different prudential frameworks. It considers an agent-based computational model populated by consumers, firms, banks, and a central bank whose out-of-equilibrium interactions replicate the conjunct dynamics of a banking system, a financial market and the real economy. A calibrated version of the model is shown to provide an intelligible account of several recurring economic phenomena, thus constituting a favorable ground for policy analysis. The investigation provides a valuable methodological contribution to the field of banking research and sheds new light on the role of banks and their prudential regulation. Specifically, the results suggest that banks are key economic agents. Through their financial intermediation activity, credit institutions facilitate investment and promote growth.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Economics: The Open-Access, Open-Assessment E-Journal ; ISSN: 1864-6042 ; Volume: 10 ; Year: 2016 ; Issue: 2016-31 ; Pages: 1-55 ; Kiel: Kiel Institute for the World Economy (IfW)

Classification and Topics

• Classification: Wirtschaft ; Computational Techniques; Simulation Modeling ; Financial Institutions and Services: Government Policy and Regulation
• Subject: agent-based computational model ; financial intermediation ; prudential policy ; bank regulation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Quinaz, Pedro Dias ; Curto, José Dias
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2016

Further information

• DOI: doi:10.5018/economics-ejournal.ja.2016-31
• Handle: http://hdl.handle.net/10419/148372
• Last update: 10.03.2025, 11:43 AM CET