01893cas a2200241 a 4500 AALejournalIMF017653 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484300688 1018-5941 BD-DhAAL BD-DhAAL Chan-Lau, Jorge. ABBA : An Agent-Based Model of the Banking System / Jorge Chan-Lau. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (33 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students A thorough analysis of risks in the banking system requires incorporating banks' inherent heterogeneity and adaptive behavior in response to shocks and changes in business conditions and the regulatory environment. ABBA is an agent-based model for analyzing risks in the banking system in which banks' business decisions drive the endogenous formation of interbank networks. ABBA allows for a rich menu of banks' decisions, contingent on banks' balance sheet and capital position, including dividend payment rules, credit expansion, and dynamic balance sheet adjustment via risk-weight optimization. The platform serves to illustrate the effect of changes on regulatory requirements on solvency, liquidity, and interconnectedness risk. It could also constitute a basic building block for further development of large, bottom-up agent-based macro-financial models. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2017/136 Full text available on IMF http://elibrary.imf.org/view/journals/001/2017/136/001.2017.issue-136-en.xml IMF e-Library