Banks API Reference

This section documents the Banks agent in the macromodel package, which implements the banking sector and its financial intermediation functions.

macromodel.agents.banks.banks.Banks

Banking system that intermediates between savers and borrowers.

This class represents the banking sector that facilitates financial intermediation through: - Deposit management (firms and households) - Loan provision (short/long-term, consumption, mortgages) - Interest rate setting (loans and deposits) - Profit generation and equity accumulation - Market share tracking - Insolvency handling

The banks operate with: - Policy rate-based interest rate adjustment - Differentiated rates for different products - Balance sheet management - Profit computation and distribution - Financial stability monitoring

Attributes:

Name	Type	Description
parameters	BankParameters	Banking sector parameters
functions	dict[str, Any]	Function implementations
policy_rate_markup	float	Markup over policy rate
ts	TimeSeries	Time series tracking bank variables
states	dict	State variables including: - corr_firms: Corresponding firm IDs - corr_households: Corresponding household IDs - is_insolvent: Bank solvency status - Pass Through/ECT parameters for different products

from_pickled_agent(synthetic_banks: SyntheticBanks, configuration: BanksConfiguration, policy_rate_markup: float, n_industries: int, scale: int, country_name: str, all_country_names: list[str]) classmethod

Create banking system from pickled data.

Initializes banks with: - Configuration parameters - Synthetic bank data - Interest rate parameters - Corresponding firm/household mappings

Parameters:

Name	Type	Description	Default
synthetic_banks	SyntheticBanks	Synthetic bank data	required
configuration	BanksConfiguration	Bank configuration	required
policy_rate_markup	float	Markup over policy rate	required
n_industries	int	Number of industries	required
scale	int	Scale factor for histograms	required
country_name	str	Name of the country	required
all_country_names	list[str]	List of all countries	required

Returns:

Name	Type	Description
Banks		Initialized banking system

reset(configuration: BanksConfiguration) -> None

Reset banking system to initial state.

Resets all state variables and updates function implementations based on the provided configuration.

Parameters:

Name	Type	Description	Default
configuration	BanksConfiguration	New configuration	required

compute_estimated_profits(estimated_growth: float, estimated_inflation: float) -> np.ndarray

Calculate estimated future profits.

Estimates profits based on: - Current profit levels - Expected economic growth - Expected inflation

Parameters:

Name	Type	Description	Default
estimated_growth	float	Expected economic growth rate	required
estimated_inflation	float	Expected inflation rate	required

Returns:

Type	Description
ndarray	np.ndarray: Estimated profits by bank

set_interest_rates(central_bank_policy_rate: float) -> None

Set interest rates for all banking products.

Updates rates for: - Short-term firm loans - Long-term firm loans - Household consumption loans - Mortgages - Firm deposits - Household deposits - Overdraft facilities

Each rate considers: - Central bank policy rate - Previous rate levels - Pass-through parameters - Error correction terms

Parameters:

Name	Type	Description	Default
central_bank_policy_rate	float	Current policy rate	required

compute_interest_received_on_deposits(central_bank_policy_rate: float) -> np.ndarray

Calculate net interest received on deposits.

Computes interest considering: - Positive and negative deposit balances - Different rates for firms and households - Overdraft rates for negative balances - Regular deposit rates for positive balances

Parameters:

Name	Type	Description	Default
central_bank_policy_rate	float	Current policy rate	required

Returns:

Type	Description
ndarray	np.ndarray: Net interest received by bank

compute_profits() -> np.ndarray

Calculate total bank profits.

Combines: - Interest received on loans - Net interest received on deposits

Returns:

Type	Description
ndarray	np.ndarray: Total profits by bank

update_deposits(current_firm_deposits: np.ndarray, current_household_deposits: np.ndarray, firm_corresponding_bank: np.ndarray, households_corresponding_bank: np.ndarray) -> None

Update deposit balances.

Records: - Firm deposits by bank - Household deposits by bank - Total deposits from firms - Total deposits from households

Parameters:

Name	Type	Description	Default
current_firm_deposits	ndarray	Current firm deposits	required
current_household_deposits	ndarray	Current household deposits	required
firm_corresponding_bank	ndarray	Bank IDs for firms	required
households_corresponding_bank	ndarray	Bank IDs for households	required

update_loans(credit_market: CreditMarket) -> None

Update loan balances.

Records: - Short-term firm loans - Long-term firm loans - Household consumption loans - Mortgages - Total outstanding loans

Parameters:

Name	Type	Description	Default
credit_market	CreditMarket	Credit market instance	required

compute_market_share() -> np.ndarray

Calculate market share of each bank.

Based on: - Total outstanding loans - Total deposits from firms - Total deposits from households

Returns:

Type	Description
ndarray	np.ndarray: Market share by bank

compute_equity(profit_taxes: float) -> np.ndarray

Calculate bank equity.

Considers: - Current equity levels - After-tax profits - Insolvency status

Parameters:

Name	Type	Description	Default
profit_taxes	float	Tax rate on profits	required

Returns:

Type	Description
ndarray	np.ndarray: Equity by bank

compute_liability() -> np.ndarray

Calculate total bank liabilities.

Sums: - Deposits from firms - Deposits from households

Returns:

Type	Description
ndarray	np.ndarray: Total liabilities by bank

compute_deposits() -> np.ndarray

Calculate total deposits.

Sums: - Deposits from firms - Deposits from households

Returns:

Type	Description
ndarray	np.ndarray: Total deposits by bank

handle_insolvency(credit_market: CreditMarket) -> float

Handle insolvent banks.

Processes: - Identification of insolvent banks - Marking of insolvent status - Credit market adjustments - Loss computation

Parameters:

Name	Type	Description	Default
credit_market	CreditMarket	Credit market instance	required

Returns:

Name	Type	Description
float	float	Total losses from insolvency

compute_insolvency_rate() -> float

Calculate bank insolvency rate.

Returns:

Name	Type	Description
float	float	Fraction of banks that are insolvent

save_to_h5(group: h5py.Group)

Save bank data to HDF5.

Stores all time series data in the specified HDF5 group.

Parameters:

Name	Type	Description	Default
group	Group	HDF5 group to save data in	required

Functions

Bank Demography

macromodel.agents.banks.func.demography.BankDemography

Abstract base class for bank demography management.

This class defines strategies for handling bank demographics and insolvency through: - Solvency monitoring - Insolvency detection - Capital adequacy assessment - Restructuring decisions

The strategies consider: - Equity to asset ratios - Minimum capital requirements - System-wide stability - Resolution mechanisms

Attributes:

Name	Type	Description
solvency_ratio	float	Minimum required equity to assets ratio

Interest Rate Setting

macromodel.agents.banks.func.interest_rates.InterestRatesSetter

Abstract base class for interest rate determination.

This class defines strategies for setting interest rates on all banking products through: - Policy rate transmission - Pass-through mechanisms - ECT adjustments - Product differentiation

The rates include: - Firm lending rates - Household lending rates - Deposit rates - Overdraft rates

Profit Estimation

macromodel.agents.banks.func.profit_estimator.BankProfitsSetter

Abstract base class for bank profit estimation.

This class defines strategies for estimating future bank profits based on: - Current profit levels - Economic growth expectations - Inflation projections - Bank-specific conditions

The estimates consider: - Historical performance - Macroeconomic outlook - Price level dynamics - Individual bank factors