Home  Journals  Finance and Credit  34(466) - 2011 September

Mathematical models for forecasting net income from foreign exchange operations of the commercial bank

Available online: 26 September 2011

Subject Heading: BANKING BUSINESS

JEL Classification: 

In the terms of expansion and strengthening of international economic relations foreign exchange transactions become one of the most important activities of commercial banks. Net proceeds of these transactions now are playing an increasingly important role in the formation of banking profits. However, this type of banking income is very unstable: the work with currency can bring to the bank not only substantial profits, but also big losses. The present work is provided with receiving on the base of statistical and econometrical methods the mathematical models, which express the relationship net income from currency operations with external factors, such as oil price, the rate of the CBR, inflation, unemployment and currency fluctuations. It is concluded that the resulting models adequately reflect these connections and can be used to predict the net proceeds from the bank foreign exchange transactions.

Keywords: currency operations, net income, mathematical modeling, forecast

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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