The credit crunch makes it almost impossible for companies or individuals to borrow from banks because lenders are scared of bankruptcies or irregularities, leading to higher rates and involve a prolonged recession and slow recovery, which occurs due to supply low credit. Credit crunch - 2008 generates many debates from US subprime to the international financial contagion, from financial reglementation: Basel I, Basel II, Basel III to global imbalances. This paper try to create a stochastic optimal control model in idea to find equilibrum points in banking systems. (C) 2012 Published by Elsevier Ltd. Selection and/or peer review under responsibility of Emerging Markets Queries in Finance and Business local organization
