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Polish Information Processing Society
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Annals of Computer Science and Information Systems, Volume 8

Proceedings of the 2016 Federated Conference on Computer Science and Information Systems

Simulating the Fractional Reserve Banking using Agent-based Modelling with NetLogo


DOI: http://dx.doi.org/10.15439/2016F373

Citation: Proceedings of the 2016 Federated Conference on Computer Science and Information Systems, M. Ganzha, L. Maciaszek, M. Paprzycki (eds). ACSIS, Vol. 8, pages 14671470 ()

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Abstract. This work presents a multi-agent-based computational model of an artificial fractional reserve banking (FRB) system. The model is implemented in NetLogo. The computational experiments and simulations we performed to analyse the proposed model show that different scenarios can lead to bank insolvency. We show that both the minimum reserve rate and the loss of confidence have large contributions to the insolvency of a bank, suggesting them as likely destabilizing economic forces driving the dynamics of the model.


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