Methods of analyzing and optimizing regional bank activity

Abstract

The paper is devoted to searching new means of sustainable development of regional banks. The authors argue that it is now timely to build up a coherent theory of bank strategy in a risk state by using the apparatus of economic-mathematical modeling (simulations) and optimization. The theory of stochastic assessment of financial sustainability has been investigated, coupled with defing the probability of bank risks happening and methods of return and risk decreasing, taking into mind the specifics of Russia. The concept and methods of shaping optimal portfolio of the securities have been stressed. The paper contains mathematical apparatus and the algorithms of its practical using. This research work is addressed to a great number of both bank employees and academics.