Firm–bank credit network, business cycle and macroprudential policy

We present an agent-based model to study firm–bank credit market interactions in different phases of the business cycle. The cycle is exogenously set, and it can give rise various scenarios. Compared other models this literature strand, we improve mechanism according which dividends are distributed, including possibility stock repurchase by firms. In addition, locate firms banks over a space may ask many banks, resulting complex spatial network. reproduces long list stylized facts their dynamic evolution as described cross-correlations among variables. allows us test effectiveness rules designed current financial regulation, such Basel III countercyclical capital buffer. find that rule changes environments should be considered policy makers.