Economics and Business Management

Methods of deposit portfolio formation as an instrument of the bank’s resource policy

R. Opalchuk, B. Nevgad
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Abstract

The article examines the role of the deposit portfolio in providing the resource base of a commercial bank. The theoretical aspects of forming the deposit portfolio, its components, and influencing factors are considered. To determine the financial stability and the bank’s ability to provide loans and invest funds in various types of assets, an analysis of the relationships between the bank’s resource policy and its deposit portfolio has been conducted. Methods and strategies influencing the formation of the deposit portfolio and its role as an important instrument of resource policy are investigated. The main factors of deposit portfolio management are analyzed, including deposit mobilization strategies, asset allocation, risk profile, and diversification. The instruments used for deposit portfolio management are described in detail, including the liquidity model, risk assessment model, deposit demand forecasting model, competitive environment analysis, and others. Ways to maximize profits from deposits are explored, including the use of optimal interest rates, development of new products and services to attract clients. To form the basis of the research, the dynamics of the efficiency indicators of the deposit policy of PJSC CB «PrivatBank» for the years 2019-2023 were analyzed. The practical aspects of deposit portfolio management are examined, and recommendations for its optimization are provided. Specifically, issues such as creating effective mechanisms for attracting new clients, developing deposit portfolio products, considering client interests, and ensuring a high level of service are investigated. Factors such as risk, liquidity, profitability, and stability are analyzed to determine the optimal allocation of deposit resources. Successful deposit portfolio management requires continuous monitoring of market conditions and analysis of changes in demand and supply in the banking market. Concrete recommendations for managing commercial banks’ deposit portfolios, based on research findings, are proposed. The obtained results can be utilized to enhance the financial stability of the bank. Banks can employ recommendations for diversifying the deposit portfolio and managing risks to ensure stable development and prevent financial issues

Keywords

bank; banking resources; deposit portfolio; deposit policy; deposit portfolio management; resource policy; financial stability

Suggested citation
Opalchuk, R., & Nevgad, B. (2024). Methods of deposit portfolio formation as an instrument of the bank’s resource policy. Economics and Business Management, 15(2), 75-90. https://doi.org/10.31548/economics15(2).2024.066
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