DYNAMICAL MODELS OF DEPOSITS AND LOANS VOLUMES USING INTERBANK LENDING-AND-SAVING FACTOR FOR COMMERCIAL BANKS
Banks are the nancial intermediaries that the average person interacts with most frequently. Banks accept deposits from individuals and institutions to make loans. The loans made by a bank should be proportional to its deposits. Small number of loans would result in minimal prot. However, giving...
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| Format: | Final Project |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/34018 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Banks are the nancial intermediaries that the average person interacts with most
frequently. Banks accept deposits from individuals and institutions to make loans.
The loans made by a bank should be proportional to its deposits. Small number
of loans would result in minimal prot. However, giving out too much loans would
give negative eects to the bank's liquidity. Banks also get and make loans to other
banks in interbank market. In this nal project, dynamical models of bank deposits
and loans volumes will be constructed considering the interbank lending-and-saving
factor. The growth of deposits and loans volumes are assumed to follow logistic mo-
del. Fluctuations within the dynamics could happen because of some shocks. Banks'
prots are calculated based on Monti-Klein model. The dynamics of the deposits
and loans, as well as the eect of the shocks to banks' prot, will be analyzed for
each group of banks based on its core capital. The results show that the capability
of banks to handle shocks are dierent based on the group. Shocks in loans dynamic
have greater impacts to banks' prot compared to the shocks in deposits dynamic.
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