Commercial Bank Loan Size And Term Structure Of Decision-making Methods

The topic of the thesis is how to decide the scale and the term structure of the new loan. The problem derives from the fact faced by the commercial banks: the banks gain profit by lending or investment after they absorbed in the various deposits and equity. But unfortunately, there are various risk accompany with the course, such as market risk, liquidity risk and default risk. It is the existence of these risk that the goal that the banks want to achieve isn't unique, i.e. profit is not sole, there are other goals: maximum liquidity and maximum security of the assets. In fact, it is a contradiction to reach the three goals simultaneously, In order to control the risk of all the commercial banks, the central bank has made the act of banks' asset and liability ratio management.Under this background , the problem is posed. That is how to decide the scale and the term structure of the new loan allowing for the dynamic changes of the item in the balance sheet, the interest rate and the asset quality. So the bank can reach the optimum goal. And we know the decision must conform to the act of asset and liability ratio management.To solve the problem, the text successively tells the thought that optimizes the terminate indices of the goals, lists the factors of fund ,interest rate and the assets' quality that can affect the decision, and provides a method of evaluating the quality of the assets.Subsequently, with the preceding analysis and method, the text provides a mathematics model for the complicated problem of the loan decision on the basis of the dynamic rule of the items in the balance sheet, the interest rate and the asset quality. Else, it explains the character of the model and lists the attentions.At last with an example it is proved practical.