Ilchenko K. Modelling of lending and deposit-taking activities of commercial banks considering their goodwill

Conceptual model of lending and deposit-taking activities of commercial banks was developed in this thesis. The goodwill was taken into account. The model was based on the formalization of relationship between goodwill, liquidity and dynamics of deposit-taking activities by the system of differential equations. Model implementation allows to increase the effectiveness of the bank by developing its operation strategies.A method of classification of lending volumes functions based on a retrospective study of lending dynamics was developed. The methodical approach to the bank lending and deposit-taking activities optimization by using lending and deposit-taking activities model based on goodwill was described. The model includes multi-criteria optimization problem and makes it possible to determine the effective interest lending and deposit rates. Methods for determining the lending and deposit rates of commercial banks were improved. Methods of game theory, namely, guaranteed strategy finding and Nash equilibrium were offered for determining the rates. Method of optimization for the multi-criteria model using discrete analogue of differential equations was described. Methods of decision making under conditions of perfect competition in the banking market were described.