6533b826fe1ef96bd128511c

RESEARCH PRODUCT

Some Quantitative Aspects of Stability Management Strategy in a Bank

Irina SolovjovaSvetlana Saksonova

subject

Commercial bank strategyFinanceActuarial scienceRelation (database)business.industryAsset qualityMarket liquidityResource (project management)LiquidityOpen market operationScale (social sciences)Management systemEconomicsProfitabilityGeneral Materials ScienceProfitability indexbusinessStability

description

Abstract The stability of commercial bank system is the result of balanced development, which can be characterised by equilibrium and security over a longer period of time. The history of commercial bank system development indicates that reaching and sustaining this qualitative and quantitative state requires regulations and management. One of the most important parts of commercial bank management system is correctly chosen strategy in the circumstances of a changing environment. Strategy gives a possibility to look into the future of the commercial bank, forecast its goals, areas, scale and potential operational results in relation to resource sources and expenses. Nowadays a commercial bank without a strategy is a body of assets, which is encumbered with liabilities. In the paper quantitative stability management aspects are being analysed – commercial bank profitability, liquidity, asset quality and recommendations are given for ensuring bank stability.

https://doi.org/10.1016/j.sbspro.2012.09.1034