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Analysis of the Effect of Financial Regulation on Market Collapse Process in Financial Network

  • Takamasa KikuchiEmail author
  • Masaaki Kunigami
  • Takashi Yamada
  • Hiroshi Takahashi
  • Takao Terano
Conference paper
Part of the Smart Innovation, Systems and Technologies book series (SIST, volume 148)

Abstract

This study focuses on the influence of the market collapse process of financial institutions under financial regulation on financial systems. For this purpose, the authors expand simulation models of systemic risks expressing financial regulation and the financing behavior of financial institutions. Using this model, scenario analysis is performed how the collapse process in the financial system changes due to the balance sheet constraint. Our numerical experiment shows that (1) as the amount of marketable assets is increased, the type of failed process with high occurrence changes, and (2) when there is a balance sheet restriction, the frequency of chain collapse is suppressed.

Keywords

Agent-based simulation Systemic risk Financial regulations Simulation analysis 

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Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  • Takamasa Kikuchi
    • 1
    Email author
  • Masaaki Kunigami
    • 2
  • Takashi Yamada
    • 3
  • Hiroshi Takahashi
    • 1
  • Takao Terano
    • 4
  1. 1.Keio UniversityYokohamaJapan
  2. 2.Tokyo Institute of TechnologyYokohamaJapan
  3. 3.Yamaguchi UniversityYamaguchiJapan
  4. 4.Chiba University of CommerceIchikawaJapan

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