The relationship between loan portfolio size and risk diversification for commercial bank
Authors
Y. Zhang, S. Zhou, B. S. Shi
Corresponding Author
Y. Zhang
Available Online November 2015.
- DOI
- 10.2991/ssemse-15.2015.389How to use a DOI?
- Keywords
- Loan portfolio; Risk diversification; Comprehensive profit; Internal management
- Abstract
The risk-adjusted return on capital (RAROC) which is one of the most important indicators in commercial bank is used to study the risk diversification effectiveness of loan portfolio size under the economic capital constraints. About 68.09%s’ average risk of loan portfolio can eliminated by 10 sub-branches and 74.79% s’ average risk of loan portfolio can eliminated by 19 sub-branches which can consider as the proper size of portfolio. Furthermore, the similarities and differences between loan portfolio and stock investment are analyzed.
- Copyright
- © 2015, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Y. Zhang AU - S. Zhou AU - B. S. Shi PY - 2015/11 DA - 2015/11 TI - The relationship between loan portfolio size and risk diversification for commercial bank BT - Proceedings of the 2015 International Conference on Social Science, Education Management and Sports Education PB - Atlantis Press SP - 1517 EP - 1520 SN - 2352-5398 UR - https://doi.org/10.2991/ssemse-15.2015.389 DO - 10.2991/ssemse-15.2015.389 ID - Zhang2015/11 ER -