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| In the China interbank market, the transaction behaviors of banks are similar and the interbank borrowing is short of regulation, which may result in a big problem. In this case, when the bank system faces liquidity shocks, it is difficult for the bank system to resolve the crisis only with the help of the interbank market. Therefore, how to develop monetary policies by the central bank to ease the system risk is a big issue. Considering the issue of system risk, the present paper constructs a dynamical bank network model based on agents' behavior with the method of the agent-based computational finance, and then studies the effects of the central bank on the stability of the bank system. The results show that the central bank can eliminate financial panic and achieve stability and security of the bank system with a range of appropriate monetary policy tools. Furthermore, when the bank system becomes unstable due to the short of regulation, it is difficult for the central bank to improve the stability of the bank system by adjusting the money policy of the deposit reserve rate. |
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