Commercial bank model

1 collaborator

Haowen Li (Author)

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Click to Run Model

globals [average-interest-rate]

breed [banks-with-capital bank-with-capital]
banks-with-capital-own [interest-rate macroprudential-policy-level]

breed [banks-without-capital bank-without-capital]
banks-without-capital-own [interest-rate macroprudential-policy-level]

to setup
  clear-all
  set average-interest-rate 2 ; Set a low average interest rate to represent the low-interest rate environment

  ; Create banks with capital based on the slider value
  create-banks-with-capital num-banks-with-capital [
    setxy random-xcor random-ycor
    set interest-rate random-float 5 ; random interest rate between 0% to 5% (lower for banks with capital)
    set macroprudential-policy-level calculate-policy-level interest-rate false
    set color green ; color to represent banks with capital
  ]

  ; Create banks without capital based on the slider value
  create-banks-without-capital num-banks-without-capital [
    setxy random-xcor random-ycor
    set interest-rate 5 + random-float 5 ; random interest rate between 5% to 10% (higher for banks without capital)
    set macroprudential-policy-level calculate-policy-level interest-rate true
    set color red ; color to represent banks without capital
  ]

  reset-ticks
end 

to go
  ask banks-with-capital [
    ; Example behavior: Banks with capital might try to move toward the top of the world
    set heading 0 ; Point upwards
    fd 0.5
  ]

  ask banks-without-capital [
    ; Example behavior: Banks without capital might try to move toward the bottom of the world
    set heading 180 ; Point downwards
    fd 0.5
  ]

  tick
end 

to-report calculate-policy-level [rate no-capital?]
  ; Assuming a linear relationship between interest rate and macroprudential policy level
  ; If no capital, the policy level is higher
  if no-capital? [
    report 20 - rate
  ]
  report 10 - rate
end

There is only one version of this model, created almost 2 years ago by Haowen Li.

Attached files

File	Type	Description	Last updated
Commercial bank model.png	preview	Preview for 'Commercial bank model'	almost 2 years ago, by Haowen Li	Download

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