Simulating the Fractional Reserve Banking using Agent-based Modelling with NetLogo

This work presents a multi-agent-based computational model of an artificial fractional reserve banking (FRB) system. The model is implemented in NetLogo. The computational experiments and simulations we performed to analyse the proposed model show that different scenarios can lead to bank insolvency. We show that both the minimum reserve rate and the loss of confidence have large contributions to the insolvency of a bank, suggesting them as likely destabilizing economic forces driving the dynamics of the model.