Impact of block chain technology implementation on the interbank loan market

• Main Author: Ang, Ko Hong
• Other Authors: Chew Lock Yue
• Format: Final Year Project
• Language: English
• Published: Nanyang Technological University 2020
• Subjects: Science::Physics
• Online Access: https://hdl.handle.net/10356/136735
• Institution: Nanyang Technological University

The modern financial system is constantly evolving and is becoming more complex. In addition, there have been multiple advances in the field of financial technology. Block chain is one of the technology that is being discussed widely. This paper attempts to investigate the impacts on implementation of block chain technology on the financial system. Netlogo was used in the implementation of agent-based models on the interbank loan market. Four different scenarios representing different rules affecting the loan mechanism were studied. The study found that the different scenarios did not differ by much from each other. Which led to the conclusion that implementation of block chain technology did not alter the robustness of the system by much. However, there were limitations to this study as a result of simplifying the model for efficiency in computation. Additional work will need to be done to accurately reflect the real world situation.