Asset and Liability Management Bank "Pravex"

The most important task for management of each bank is to ensure the optimal structure of attracted and placed funds. Today Pravex has a diversified funding base that can respond more flexibly to market needs. In 2007, the reported total liabilities of Pravex share equity was 9.96% (356 664 thousand UAH), and liabilities were distributed between the financial resources that are diverted from other banks (7.83% or 280 671 thousand UAH) means of legal persons (9.11% or UAH 326 424) and by individuals (63.5% or 2,275,218 ths.) The main source of attracting resources from clients is time deposits of the population, whose share in total liabilities of 56.33% and the means to demand deposits of legal entities (their share of 8.22%). In 2006, the faster pace in the resource base of the bank grew assets of individuals (up to 1.68 times) (Figure 3.2). One of the main banking activities is to attract the temporarily free funds in deposit accounts at the bank (the national currency - 51.78%, U.S. dollar - 41.78%, EUR - 6.44%). Pravex is focused on servicing various types of clients - individuals as well as small and medium businesses. The Bank carefully and conscientiously pursuing a policy of setting interest rates on deposits, constantly analyzing changes occurring in the market of banking services (including deposit operations) on the basis of which is determined by the effective cost of funds in a particular time in a policy-based equitable balance of interests of depositors and shareholders the bank. Category: Financial Management