Assessment of the Balance Degree of Loan Companies Banking Policy

V.V. Mitrokhin, S.S. Artemyeva, I.K. Simaeva
European Research Studies Journal, Volume XIX, Issue 3A, 19-31, 2016
EOI: 10.11214/thalassinos.19.03.002

Abstract:

Achieving a balance in the management of banking transactions in the crisis tendencies in the national banking system becomes a priority for bank management. The need for finding a solution to this problem is determined by the persistence in the national banking sector a number of dislocations caused by narrowing of the resource base of loan companies, by low efficiency of bank capital allocation, and high-risk credit policy. These dislocations determine the imbalance of the banks’ policies and cause the strengthening of the financial sector of point defaults, which inevitably lead to the systemic risk of the entire banking sector activities. The solution of the designated problem requires the development of methodological tools and allows us to give a comprehensive assessment of the balance of the banking policy of loan companies and to take timely organizational actions. In this article the authors proved the approach to assessing the balance of the banks’ policies, based on a comprehensive analysis of the balance between active and passive banking operations, including liquidity, stability, profitability as well as risks and assets’ quality. The assessment is made through calculating the coefficients and indicators for the above criteria groups that allows ranging loan companies depending on the actual value of the resulting final indicators in banks with: 1) high-balanced; 2) satisfactory-balanced; 3) low-balanced bank policy.


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