DYNAMICS SYSTEM MODELS OF DEPOSITS AND LOANS BETWEEN TWO BANKS

• Main Author: EKA PRATIYA (NIM: 10114029), PIPIT
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/29943
• Institution: Institut Teknologi Bandung

Banks are the financial intermediary institutions that the most frequently used. Banks accept deposits from individuals and give loans to individuals. In addition to deposits and loans to individuals, banks also have interbank lending-and-saving or get and make loans to other banks in interbank market. The interaction between banks will have an effect on bank balance sheets that interact with each other and cause systemic risk to the banks. In this final project, dynamics system models of deposits and loans between two banks will be constructed considering the interbank lending-and-saving factor which is assumed to follow Lotka Volterra Model with the adaptation of logistic model. The dynamics of deposits and loans and the value of parameters model are analyzed by commercial bank of business group. From the simulation results when the capital of Bank 1 is greater than the capital of Bank 2, there are 9 models for the first case and 1 model for the second case whose parameters are qualify to apply in dynamics system models of deposits and loans between two. Meanwhile when the capital of Bank 1 is smaller than the capital of Bank 2 there are only 2 models for the first case and no model is qualify for the second case.