Technology planning income of the bank

Depending on the bank's strategy is formed by active management strategy for operations that provide the income of the bank. The next area of ​​revenue management is to reduce the proportion of non-performing assets. To reduce the proportion of non-performing assets there are some limitations: some non-performing assets can not be reduced for reasons beyond the control of the bank (NBU requirement to maintain a minimum level of liquidity, performance standards required reserves), some elements of non-performing assets are necessary for the bank from reasons of a commercial nature so, for example, if a significant number of bank customers are businesses trading there, the bank must maintain an objective remains on hand at a high level to meet the needs of customers in cash. The main tasks to minimize non-performing assets are: the use of all available opportunities in the bank to reduce the size of required reserves, the operational management of financial resources, then there is an excess of liquid assets must be invested in short-term assets, reducing the proportion of those operations that help to increase the proportion of non-performing assets in of bad loans and securities, do not give a profit through effective risk management, development of an optimal interest rate policy, which provides for determination of the optimal time to the current range between the average interest on borrowed funds and the average percentage of allocated funds. Category: Fundamentals of Financial Management Bank | Tags: Revenue Management