Abstract
In this research, we proposed a dynamical system of deposit and loan volumes of a bank using a predator-prey paradigm, where the predator is loan volumes, and the prey is deposit volumes. The existence of loan depends on the existence of deposit because the bank will allocate the loan volume from a portion of the deposit volume. The dynamical systems have been constructed are a simple model, a model with Michaelis–Menten Response and a model with the Reserve Requirement. Equilibria of the systems are analysed whether they are stable or unstable based on their linearised system.
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