The relationship between loan portfolio size and risk diversification for commercial bank

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/).

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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  -