Simulation of the effect of financial regulation on the stability of financial systems and financial institution behavior

Takamasa Kikuchi; Masaaki Kunigami; Takashi Yamada; Hiroshi Takahashi; Takao Terano

doi:10.1007/978-3-319-92031-3_34

Simulation of the effect of financial regulation on the stability of financial systems and financial institution behavior

Takamasa Kikuchi, Masaaki Kunigami, Takashi Yamada, Hiroshi Takahashi, Takao Terano

Graduate School of Business Administration

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

1 Citation (Scopus)

Abstract

This study focuses on the influence of financial institutions’ behavior under financial regulation on financial systems. For this purpose, the authors propose simulation models of systemic risks expressing financial regulation and the financing and investment behavior of financial institutions. Using this model, scenario analysis is performed based on cases generated from a combination of various regulations. We then approach the issue of the trade-off between the stability of the financial system and a decline in liquidity. Our numerical experiment shows that the liquidity of marketable assets could be reduced by imposing a BS restriction.

Original language	English
Title of host publication	Agents and Multi-Agent Systems
Subtitle of host publication	Technologies and Applications 2018 - Proceedings of the 12th International Conference on Agents and Multi-Agent Systems: Technologies and Applications KES-AMSTA-18
Publisher	Springer Science and Business Media Deutschland GmbH
Pages	341-353
Number of pages	13
ISBN (Print)	9783319920306
DOIs	https://doi.org/10.1007/978-3-319-92031-3_34
Publication status	Published - 2019 Jan 1
Event	12th KES Conference on Agent and Multi-Agent Systems: Technologies and Applications, KES-AMSTA 2018 - Gold Coast, Australia Duration: 2018 Jun 20 → 2018 Jun 22

Publication series

Name	Smart Innovation, Systems and Technologies
Volume	96
ISSN (Print)	2190-3018
ISSN (Electronic)	2190-3026

Other

Other	12th KES Conference on Agent and Multi-Agent Systems: Technologies and Applications, KES-AMSTA 2018
Country/Territory	Australia
City	Gold Coast
Period	18/6/20 → 18/6/22

Keywords

Agent-based simulation
Asset liability management
Financial regulations
Systemic risk

ASJC Scopus subject areas

Decision Sciences(all)
Computer Science(all)

Access to Document

10.1007/978-3-319-92031-3_34

Cite this

Kikuchi, T., Kunigami, M., Yamada, T., Takahashi, H., & Terano, T. (2019). Simulation of the effect of financial regulation on the stability of financial systems and financial institution behavior. In Agents and Multi-Agent Systems: Technologies and Applications 2018 - Proceedings of the 12th International Conference on Agents and Multi-Agent Systems: Technologies and Applications KES-AMSTA-18 (pp. 341-353). (Smart Innovation, Systems and Technologies; Vol. 96). Springer Science and Business Media Deutschland GmbH. https://doi.org/10.1007/978-3-319-92031-3_34

Simulation of the effect of financial regulation on the stability of financial systems and financial institution behavior. / Kikuchi, Takamasa; Kunigami, Masaaki; Yamada, Takashi; Takahashi, Hiroshi; Terano, Takao.

Agents and Multi-Agent Systems: Technologies and Applications 2018 - Proceedings of the 12th International Conference on Agents and Multi-Agent Systems: Technologies and Applications KES-AMSTA-18. Springer Science and Business Media Deutschland GmbH, 2019. p. 341-353 (Smart Innovation, Systems and Technologies; Vol. 96).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

Kikuchi, T, Kunigami, M, Yamada, T, Takahashi, H & Terano, T 2019, Simulation of the effect of financial regulation on the stability of financial systems and financial institution behavior. in Agents and Multi-Agent Systems: Technologies and Applications 2018 - Proceedings of the 12th International Conference on Agents and Multi-Agent Systems: Technologies and Applications KES-AMSTA-18. Smart Innovation, Systems and Technologies, vol. 96, Springer Science and Business Media Deutschland GmbH, pp. 341-353, 12th KES Conference on Agent and Multi-Agent Systems: Technologies and Applications, KES-AMSTA 2018, Gold Coast, Australia, 18/6/20. https://doi.org/10.1007/978-3-319-92031-3_34

Kikuchi T, Kunigami M, Yamada T, Takahashi H, Terano T. Simulation of the effect of financial regulation on the stability of financial systems and financial institution behavior. In Agents and Multi-Agent Systems: Technologies and Applications 2018 - Proceedings of the 12th International Conference on Agents and Multi-Agent Systems: Technologies and Applications KES-AMSTA-18. Springer Science and Business Media Deutschland GmbH. 2019. p. 341-353. (Smart Innovation, Systems and Technologies). https://doi.org/10.1007/978-3-319-92031-3_34

Kikuchi, Takamasa ; Kunigami, Masaaki ; Yamada, Takashi ; Takahashi, Hiroshi ; Terano, Takao. / Simulation of the effect of financial regulation on the stability of financial systems and financial institution behavior. Agents and Multi-Agent Systems: Technologies and Applications 2018 - Proceedings of the 12th International Conference on Agents and Multi-Agent Systems: Technologies and Applications KES-AMSTA-18. Springer Science and Business Media Deutschland GmbH, 2019. pp. 341-353 (Smart Innovation, Systems and Technologies).

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AB - This study focuses on the influence of financial institutions’ behavior under financial regulation on financial systems. For this purpose, the authors propose simulation models of systemic risks expressing financial regulation and the financing and investment behavior of financial institutions. Using this model, scenario analysis is performed based on cases generated from a combination of various regulations. We then approach the issue of the trade-off between the stability of the financial system and a decline in liquidity. Our numerical experiment shows that the liquidity of marketable assets could be reduced by imposing a BS restriction.

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Simulation of the effect of financial regulation on the stability of financial systems and financial institution behavior

Abstract

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Keywords

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