In this Simulation, you are a Bank CEO.  You will

guide your bank with quarterly decisions to:

  • Buy and Sell Risky Assets;

  • Issue Deposits;

  • Issue, Redeem, and Repurchase Debt;

  • Issue and Repurchase Equity;

  • Pay Dividends;

  • Satisfy Reserve and Capital Requirements; and

  • React to Runs on the Bank and Central Bank Actions.

User Input

Quarterly Periods          

Reserve Requirement          

Minimum Equity / Assets          

Fair Value OCI Fraction          

Interest on Reserves          

Risk Management

Your Initial Balance Sheet is Simple: $100 Million of Equity All Held in Cash/Reserves. Most Likely You Will Want to Borrow During the Early Quarters by Adding Debt and Deposits to Acquire Risky Assets (such as Mortgages and Loans). Then Monitor the Income Statement and Balance Sheet to Achieve Profitability with LOW VOLATILITY. (Both Level and Volatility of Net Income Impact the Stock Price.) Credit Risk Losses May Force You to De-Leverage to Avoid Insolvency!