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Optimal Model of Bank’s Loans Portfolio Based on the Constraint of Value at Risk
Author: WuShanShan
Tutor: ChiGuoTai
School: Dalian University of Technology
Course: Industrial Economics
Keywords: Loan portfolio Portfolio risk Optimization Model Value at Risk Linear completeness transform
CLC: F830.5
Type: Master's thesis
Year: 2006
Downloads: 274
Quote: 0
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Abstract
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Banks operating in an important decision is to optimize the structure of the loan portfolio , to hold a yield as high as possible and as small as possible , the risk of the loan portfolio . Credit risk of commercial banks has been a serious problem in China's banking sector development , study of loan portfolio optimization model can optimize the allocation of risk control of commercial banks as well as the loan portfolio structure to provide decision support , has important practical significance . This article is divided into five chapters , the first chapter of the development process and the research status of the loan portfolio theory ; the second chapter, the basic principles of the bank loan portfolio risk constraint - based optimization modeling , portfolio optimization model provides a theoretical basis ; the Chapter bank loan portfolio optimization model , a model for the establishment of the management of the loan portfolio of commercial banks in China ; fourth chapter, use the model instance ; Chapter Conclusion . The focus of this study has two main aspects : First , determine the yield of the banks' loan portfolios VaR limits ; determine the yield of the loan portfolio choice . Specific performance using linear the incomplete transformation method , the minimum of the objective function to the risk of the loan portfolio , loan portfolio expected return rate constraints modeling . This article features and innovative performance in the following three aspects : First , determine the rate of return on bank loans selected range . A complete transformation method to determine the rate of return on bank loans selection using linear solve the previous studies , the yield of the loan portfolio to determine unreasonable , a result of the optimization of the decision-making model no solution to the problem ; solve complex constraints case can not be solved loans optimal proportion of the problem. The second is to determine the risk value of the loan portfolio yield constraints . Model according to the principle of bank risk tolerance , risk value of the loan portfolio yield constraints control portfolio risk loans rationing . Establish effective boundary of the loan portfolio . According to the Bank given the risk of yield minimum principle , the establishment of the loan portfolio efficient frontier , to solve the bank can not be flexibly adjusted loan portfolio to ensure that the loan yield risk minimization problem .
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CLC: > Economic > Fiscal, monetary > Finance, banking > Finance, banking theory > Credit
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