Sustainability of Islamic and Conventional Banking. Agent-based Approach

The article presents a comparative study of the stability of Islamic and conventional banking models using agent-based modeling. In the Netlogo environment (version 7.0.4), a model has been created that includes two alternative banks with identical initial parameters and common client agents for which interest-bearing lending instruments implemented by a conventional bank are simulated, as well as murabaha (margin trading), mudaraba (trust partnership) and ijara (financial leasing) implemented by an Islamic bank. 25 runs of the 500-tick model were carried out in various phases of the economic cycle. The results show that a conventional bank has higher capital stability, ROA, ROE and a low proportion of overdue loans (