A Difference Equation of Banking Loan with Nonlinear Deposit Interest Rate

Moch. Fandi Ansori; F. Hilal Gümüş

doi:10.33187/jmsm.1396368

EN

A Difference Equation of Banking Loan with Nonlinear Deposit Interest Rate

Abstract

This paper considers a banking loan model using a difference equation with a nonlinear deposit interest rate. The construction of the model is based on a simple bank balance sheet composition and a gradient adjustment process. The model produces two unstable loan equilibriums and one stable equilibrium when the parameter corresponding to the deposit interest rate is situated between its transcritical and flip bifurcations. Some numerical simulations are presented to align with the analytical findings, such as the bifurcation diagram, Lyapunov exponent, cobweb diagram, and contour plot sensitivity. The significance of our result is that the banking regulator may consider the lower and upper bounds for setting the nonlinear interest rate regulation and provide a control regulation for other banking factors to maintain loan stability.

Keywords

Banking loan dynamics, Nonlinear interest rate, Stability

References

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Details

Primary Language

English

Subjects

Modelling and Simulation

Journal Section

Research Article

Authors

Moch. Fandi Ansori
0000-0002-4588-3885
Indonesia

F. Hilal Gümüş ^*
0000-0002-6329-7142
Türkiye

Early Pub Date

February 25, 2024

Publication Date

May 8, 2024

Submission Date

November 26, 2023

Acceptance Date

February 5, 2024

Published in Issue

Year 2024 Volume: 7 Number: 1

DOI

https://doi.org/10.33187/jmsm.1396368

IZ

https://izlik.org/JA86HN39FB

APA

Ansori, M. F., & Gümüş, F. H. (2024). A Difference Equation of Banking Loan with Nonlinear Deposit Interest Rate. Journal of Mathematical Sciences and Modelling, 7(1), 14-19. https://doi.org/10.33187/jmsm.1396368

AMA

1.Ansori MF, Gümüş FH. A Difference Equation of Banking Loan with Nonlinear Deposit Interest Rate. Journal of Mathematical Sciences and Modelling. 2024;7(1):14-19. doi:10.33187/jmsm.1396368

Chicago

Ansori, Moch. Fandi, and F. Hilal Gümüş. 2024. “A Difference Equation of Banking Loan With Nonlinear Deposit Interest Rate”. Journal of Mathematical Sciences and Modelling 7 (1): 14-19. https://doi.org/10.33187/jmsm.1396368.

EndNote

Ansori MF, Gümüş FH (May 1, 2024) A Difference Equation of Banking Loan with Nonlinear Deposit Interest Rate. Journal of Mathematical Sciences and Modelling 7 1 14–19.

IEEE

[1]M. F. Ansori and F. H. Gümüş, “A Difference Equation of Banking Loan with Nonlinear Deposit Interest Rate”, Journal of Mathematical Sciences and Modelling, vol. 7, no. 1, pp. 14–19, May 2024, doi: 10.33187/jmsm.1396368.

ISNAD

Ansori, Moch. Fandi - Gümüş, F. Hilal. “A Difference Equation of Banking Loan With Nonlinear Deposit Interest Rate”. Journal of Mathematical Sciences and Modelling 7/1 (May 1, 2024): 14-19. https://doi.org/10.33187/jmsm.1396368.

JAMA

1.Ansori MF, Gümüş FH. A Difference Equation of Banking Loan with Nonlinear Deposit Interest Rate. Journal of Mathematical Sciences and Modelling. 2024;7:14–19.

MLA

Ansori, Moch. Fandi, and F. Hilal Gümüş. “A Difference Equation of Banking Loan With Nonlinear Deposit Interest Rate”. Journal of Mathematical Sciences and Modelling, vol. 7, no. 1, May 2024, pp. 14-19, doi:10.33187/jmsm.1396368.

Vancouver

1.Moch. Fandi Ansori, F. Hilal Gümüş. A Difference Equation of Banking Loan with Nonlinear Deposit Interest Rate. Journal of Mathematical Sciences and Modelling. 2024 May 1;7(1):14-9. doi:10.33187/jmsm.1396368