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

Research output: Chapter in Book/Report/Conference proceedingConference contribution

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.

LanguageEnglish
Title of host publicationAgents and Multi-Agent Systems
Subtitle of host publicationTechnologies and Applications 2018 - Proceedings of the 12th International Conference on Agents and Multi-Agent Systems: Technologies and Applications KES-AMSTA-18
PublisherSpringer Science and Business Media Deutschland GmbH
Pages341-353
Number of pages13
ISBN (Print)9783319920306
DOIs
Publication statusPublished - 2019 Jan 1
Event12th KES Conference on Agent and Multi-Agent Systems: Technologies and Applications, KES-AMSTA 2018 - Gold Coast, Australia
Duration: 2018 Jun 202018 Jun 22

Publication series

NameSmart Innovation, Systems and Technologies
Volume96
ISSN (Print)2190-3018
ISSN (Electronic)2190-3026

Other

Other12th KES Conference on Agent and Multi-Agent Systems: Technologies and Applications, KES-AMSTA 2018
CountryAustralia
CityGold Coast
Period18/6/2018/6/22

Fingerprint

Experiments
Financial system
Simulation
Financial institutions
Liquidity
Financial regulation
Financing
Simulation model
Assets
Trade-offs
Systemic risk
Numerical experiment
Scenario analysis
Investment behavior

Keywords

  • Agent-based simulation
  • Asset liability management
  • Financial regulations
  • Systemic risk

ASJC Scopus subject areas

  • Decision Sciences(all)
  • Computer Science(all)

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 proceedingConference 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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