OPTIMUM RISK LEVEL DETERMINATION FOR COMMERCIAL BANK ASSETS EFFICIENT STRUCTURE FORMATION

One of the main strategic aims of a bank is providing the balance between profits and risks. It is necessary to understand the idea of portfolio management in order to combine various types of financial assets successfully. Input characteristics of portfolio are risk and profitability of each financial instrument, while output characteristics show the dynamics of risk and profitability indicators of portfolio in the whole, which is important in a down economy. The article deals with risk while forming the assets structure of trade bank. The authors consider the assets structure on the example of trade banks and calculate the assets profitability as well. Proving the bank assets portfolio enhancement, the profitability and stability chart is used. The authors suggest the numerical model determining the acceptable level of risk, which maximizes the expected profitability of trade bank assets portfolio. The research objective is the assessment of risk level for efficient structure formation of trade bank assets. The study analyzes trade bank assets efficient structure formation with the acceptable level of risk using the vertical and horizontal analysis methods.