Based on NetLogo Simulation for Credit Risk Management

With economic development, the credit card business has entered a stage of rapid development. Using quantitative methods of modeling to analyses and predicts the consumers use the credit card behaviors. It is one of hot project in the experimental economics, and it is important for avoiding credit risk. The essay based on a simple NetLogo simulation model to simulate individual consumers and economic activity, to observe the risk of credit card operation system. The experimental results is, in the different income levels, the cardholders’ consuming and withdrawal behaviors would have no limits, then the issuing bank would be set line of credit is not higher twice than their income. In this situation, the cardholders could pay back the money on time. Otherwise, it will have risks for issuing bank. This method is common, so it can be used in many study areas.