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Financial Analytics: Science and Experience
 

The analogy model of dynamic balance of the joint-stock bank

Vol. 9, Iss. 45, DECEMBER 2016

PDF  Article PDF Version

Received: 25 October 2016

Received in revised form: 10 November 2016

Accepted: 17 November 2016

Available online: 21 December 2016

Subject Heading: RELIABILITY OF FINANCIAL INSTITUTIONS

JEL Classification: C12, D50, G21

Pages: 51-64

Bulanov Yu.N. Kuznetskbuzinesbank, Novokuznetsk, Kemerovo Oblast, Russian Federation
bulanov@kbb.ru

Importance Business interests of the bank’s stakeholders underlie its reliability and financial sustainability. Although being logical, indices and results of the banking development strategy, for purposes of its systemic sustainability increase, are insufficient. It necessitated the research.
Objectives The research investigates and evaluates some quantitative results of the banking development strategy up to 2015 in terms of financial sustainability of the banking sector and banks. I also study the existing methodological approaches to ensuring sustainability of commercial banks.
Methods The research relies upon the theory of interested parties, the Ackoff corporation model, Mendelow model, analog modeling.
Results The consolidation of the banking sector has not resulted in its systemic sustainability increase. The article sets forth an approach to determining the economic nature of financial sustainability in relation to the joint-stock bank. The approach is illustrated with the analog model for the bank development guided by stakeholders. I reviewed basic paths of the bank’s strategic development, i.e. aggressive growth, dumping, conservatism, evolutionary growth.
Conclusions and Relevance The proposed analog model of dynamic balance visualizes paths and a range of the credit institution’s sustainable development in the competitive and regulatory environment. It can be used by corporate governance bodies of banks for purposes of strategic management, and for training of bank managers.

Keywords: M&A, event study

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