Optimization of the Bank‘s Value in Conditions of Globalisation and Permanent Crisis

Jan Kolesnik, Jacek Nadolski
European Research Studies Journal, Volume XXIV, Issue 3B, 118-140, 2021
DOI: 10.35808/ersj/2454


Purpose: The aim of this article is to present the conceptual model of integrated optimization of bank’s value, which enables the integration of the risk management process with business processes while maintaining an optimal compromise between the safety (stability) of the bank's operations and striving to maximize its value. Design/Methodology/Approach: In the model used the hitherto achievements of various fields of science that are applicable in banking activities and the process of bank management, synthesized them and applied to solve contemporary dilemmas that pose a challenge in the difficult and dynamically changing economic reality. Findings: As a result of the literature review, an in-depth analysis of the practice of the management methods and techniques used and the current dilemmas facing the banking sector, it was found that it was possible to formulate a financial management model for a bank, which, apart from the possibility of automation and an integrated approach to the management process, enables a sustainable and optimal development of the bank's operations. Practical Implications: The aim of the model is the possibility of gaining a long-term competitive advantage in conditions of increasing globalisation, permanent threat of a crisis resulting from integration of financial markets and intensification of the contagion effect, growing competition which exerts pressure on operational efficacy, as well as shortcomings and unreliability of the markets. The model addresses the dilemmas currently facing the banking sector in view of the important structural and regulatory changes, which are of significant importance for maintaining and improving its stability. Originality/Value: The model aims at providing a complex solution to such dilemmas as shaping the bank value ex ante not ex post. Its additional quality is a modular, multi-variant and two-directional structure. This structure in practice increases flexibility of model’s implementation, its application in the banks which use different technological, methodological and organizational solutions, and formulation of optimization problems.

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