Semnan University Journal of Econometric Modelling 2345-654X 9 4 2025 01 20 The influence of the systematic risk of the country's banking network on credit risk: new empirical evidence from the random dynamic bank-oriented multi-agent model (DBMM). The influence of the systematic risk of the country's banking network on credit risk: new empirical evidence from the random dynamic bank-oriented multi-agent model (DBMM). 133 158 9179 10.22075/jem.2024.34855.1937 FA Roghayeh Nazemfar Faculty of Social Sciences, University of Mohaghegh Ardabili Amir Mansour Tehranchian Professor in Economics, Department of Theoretical Economics, Faculty of Economic and Administrative Sciences, University of Mazandaran Journal Article 2024 07 25 In this article, the effect of credit risk on the systematic risk of the country's banking network has been investigated using the stochastic dynamic bank-oriented multi-agent-based method (DBMM). Random dynamic game agents include banks, central bank, depositors and firms, and the time domain of the data belongs to the period of 2018-2023. According to the obtained results, reducing the share of non-current claims, reduced liquidity risk, systematic contagion and systematic risk of the banking network, and helps the stability of the banking system. Also, this research shows that reducing the share of non-current claims increases the liquidity of the banking system and the amount of banks' capital and reduces the fluctuations of credit allocation to the real sector of the economy. The control of non-current claims with the aim of controlling systematic risk and increasing stability in the country's banking network is one of the policy recommendations of this research. In this article, the effect of credit risk on the systematic risk of the country's banking network has been investigated using the stochastic dynamic bank-oriented multi-agent-based method (DBMM). Random dynamic game agents include banks, central bank, depositors and firms, and the time domain of the data belongs to the period of 2018-2023. According to the obtained results, reducing the share of non-current claims, reduced liquidity risk, systematic contagion and systematic risk of the banking network, and helps the stability of the banking system. Also, this research shows that reducing the share of non-current claims increases the liquidity of the banking system and the amount of banks' capital and reduces the fluctuations of credit allocation to the real sector of the economy. The control of non-current claims with the aim of controlling systematic risk and increasing stability in the country's banking network is one of the policy recommendations of this research. https://jem.semnan.ac.ir/article_9179_f20b9a730eb3fded4ec115bd3e158f91.pdf