Discrete time Lebanese home loan model

Abstract

This paper is divided into two main parts to properly study and explain the home loan initiation by the Lebanese home loan department following the discrete time model. Part one where the outsource funding k = 0 is made of the model introduction, equilibrium study, steady state analysis and equilibrium point theory. We determine when the stability changes from (0, 0) equilibrium where the fund maturity generated by the government R < 1 to (x(t), y(t)) equilibrium where R > 1, R being the maturity of availbale funds. In part two we draw a recommendation to DHL for better fund circulation in Lebanon. This model was developed following Lebanese guidelines to initiate loans. It is shown that this model is sensitive to initial currency value spent invested by the government. While local asymptotic stability is studied analytically, bifurcation, simulation and numerical analysis are provided numerically.