IDEAS home Printed from
   My bibliography  Save this article

Modelling Strategy of Loan and Deposit Activity of a Commercial Bank


  • Ilchenko Kseniia O.

    () (National Technical University of Ukraine "Kyiv Polytechnic Institute")


The article considers development of strategy of loan-deposit strategy of a bank, which could be presented by relevant rates. Bank activity is described with goodwill and liquidity indicators that characterise tangible and intangible resources of an institution. Goodwill indicator is calculated on the basis of the previous period data. Liquidity is a relation of assets to liabilities at a certain moment of time. On the basis of these indicators the article develops a mathematical model, which includes an assumption about dependence of the rate of growth of deposits on liquidity and goodwill functions. There is a task of two criteria optimisation, the solution of which is a set of rates. The article considers cases when a bank does not change rates during a set period of time and when a bank changes them frequently under condition that rates are independent from each other. If we make an assumption that each change of rates is accompanied with costs, which are not reflected in the model, changing rates is inexpedient. The article offers to use partially constant average values of rates. The article considers the use of the ideal point for selection of one value out of the set of Pareto efficient solutions. Using presentation of the task of one criterion optimisation with respect to the liquidity ratio, the article shows that the use of the goodwill indicator influences the rate of growth of deposits. This task is a special case of the previous one, which means that this solution is within the set of the presented Pareto efficient point. But in the event of non-strict correspondence with the extreme value of the liquidity ratio, the solution worsens. The necessity of use of both criteria is important and improves the south for solution.

Suggested Citation

  • Ilchenko Kseniia O., 2014. "Modelling Strategy of Loan and Deposit Activity of a Commercial Bank," Business Inform, RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), Kharkiv National University of Economics, issue 1, pages 109-113.
  • Handle: RePEc:idp:bizinf:y:2014:i:1:p:109_113

    Download full text from publisher

    File URL:
    Download Restriction: no


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idp:bizinf:y:2014:i:1:p:109_113. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alexey Rystenko). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.