Loading [MathJax]/jax/output/SVG/config.js
Computer Research and Modeling
RUS  ENG    JOURNALS   PEOPLE   ORGANISATIONS   CONFERENCES   SEMINARS   VIDEO LIBRARY   PACKAGE AMSBIB  
General information
Latest issue
Archive

Search papers
Search references

RSS
Latest issue
Current issues
Archive issues
What is RSS



Computer Research and Modeling:
Year:
Volume:
Issue:
Page:
Find






Personal entry:
Login:
Password:
Save password
Enter
Forgotten password?
Register


Computer Research and Modeling, 2024, Volume 16, Issue 4, Pages 1023–1032
DOI: https://doi.org/10.20537/2076-7633-2024-16-4-1023-1032
(Mi crm1204)
 

MODELS OF ECONOMIC AND SOCIAL SYSTEMS

Assessing the impact of deposit benchmark interest rate on banking loan dynamics

M. Ansori, H. A. Jasir, A. H. Sihombing, S. M. Putra, D. A. Nurfaizah, E. Nurulita

Universitas Diponegoro, Jl. Prof. Jacub Rais, 50275, Semarang, Indonesia
References:
Abstract: Deposit benchmark interest rates are a policy implemented by banking regulators to calculate the interest rates offered to depositors, maintaining equitable and competitive rates within the financial industry. It functions as a benchmark for determining the pricing of different banking products, expenses, and financial choices. The benchmark rate will have a direct impact on the amount of money deposited, which in turn will determine the amount of money available for lending.We are motivated to analyze the influence of deposit benchmark interest rates on the dynamics of banking loans. This study examines the issue using a difference equation of banking loans. In this process, the decision on the loan amount in the next period is influenced by both the present loan volume and the information on its marginal profit. An analysis is made of the loan equilibrium point and its stability. We also analyze the bifurcations that arise in the model. To ensure a stable banking loan, it is necessary to set the benchmark rate higher than the flip value and lower than the transcritical bifurcation values. The confirmation of this result is supported by the bifurcation diagram and its associated Lyapunov exponent. Insufficient deposit benchmark interest rates might lead to chaotic dynamics in banking lending. Additionally, a bifurcation diagram with two parameters is also shown. We do numerical sensitivity analysis by examining contour plots of the stability requirements, which vary with the deposit benchmark interest rate and other parameters. In addition, we examine a nonstandard difference approach for the previous model, assess its stability, and make a comparison with the standard model. The outcome of our study can provide valuable insights to the banking regulator in making informed decisions regarding deposit benchmark interest rates, taking into account several other banking factors.
Keywords: chaos, deposit benchmark rate, sensitivity analysis, two-parameter bifurcation
Funding agency Grant number
Faculty of Science and Mathematics, Universitas Diponegoro 27.III.B/UN7.F8/PP/II/2024
This research is supported by the Faculty of Science and Mathematics, Universitas Diponegoro through Sumber Dana Selain APBN FSM UNDIP with grant number 27.III.B/UN7.F8/PP/II/2024.
Received: 18.01.2024
Revised: 07.06.2024
Accepted: 11.06.2024
Document Type: Article
UDC: 519.6+336.7
Language: English
Citation: M. Ansori, H. A. Jasir, A. H. Sihombing, S. M. Putra, D. A. Nurfaizah, E. Nurulita, “Assessing the impact of deposit benchmark interest rate on banking loan dynamics”, Computer Research and Modeling, 16:4 (2024), 1023–1032
Citation in format AMSBIB
\Bibitem{AnsJasSih24}
\by M.~Ansori, H.~A.~Jasir, A.~H.~Sihombing, S.~M.~Putra, D.~A.~Nurfaizah, E.~Nurulita
\paper Assessing the impact of deposit benchmark interest rate on banking loan dynamics
\jour Computer Research and Modeling
\yr 2024
\vol 16
\issue 4
\pages 1023--1032
\mathnet{http://mi.mathnet.ru/crm1204}
\crossref{https://doi.org/10.20537/2076-7633-2024-16-4-1023-1032}
Linking options:
  • https://www.mathnet.ru/eng/crm1204
  • https://www.mathnet.ru/eng/crm/v16/i4/p1023
  • Citing articles in Google Scholar: Russian citations, English citations
    Related articles in Google Scholar: Russian articles, English articles
    Computer Research and Modeling
    Statistics & downloads:
    Abstract page:87
    Full-text PDF :55
    References:23
     
      Contact us:
    math-net2025_02@mi-ras.ru
     Terms of Use  Registration to the website  Logotypes © Steklov Mathematical Institute RAS, 2025