Management of the bank’s corporate client portfolio

Kovalenko Victoria
Dr. Sc. (Economics), Professor of Banking Department, Odessa National Economic University, Ukraine, e-mail: kovalenko-6868@ukr.net, ORCID ID: https://orcid.org/0000-0003-2783-186X

Cite this article:

Kovalenko, V. (2024). Management of the bank’s corporate client portfolio [Upravlinnia korporatyvnym kliientskym portfelem banku], Socio-economic research bulletin; Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 1-2 (88-89), pp. 76-91.

Abstract

The article considers approaches to assessing the level of management efficiency a corporate client portfolio in a bank. The author’s definition of the bank’s corporate client portfolio management is given, which is considered as a type of activity within the bank itself, through which the process of making managerial decisions regarding its formation, effective interaction «corporate client-bank» and guaranteeing cyber security in relation to established relationships is carried out. It is noted that the development of the country’s economy in modern conditions depends on the state of the banking system, which is one of the most important components of existence and functioning of the financial market. Banking services are important parameters that have a significant impact on increasing the efficiency of banks activity. The interaction of banks with non-financial corporations is carried out on the basis of credit, deposit and innovation policies developed by banking business structures; formation of an affordable range of banking services for corporate business; using a customer-oriented approach to every corporate business. But at the same time, attention should also be paid to evaluating the effectiveness of such interaction on the basis of establishing the level of effectiveness of the created system of managing the corporate client portfolio by banks. The purpose of the work is assessing the level of corporate business service and justifying the scientific and methodological approach to assessing the level of management efficiency the corporate client portfolio in the bank. A model for determining the level of the management system efficiency of the bank’s corporate client portfolio is proposed using the example of Vostok PJSC. Using the method of least squares, it was proved the influence on the variable «net interest margin» of such factors as: the volume of lending to non-financial corporations; the volume of deposits of non-financial corporations; the price of the credit product; the price of the deposit product. It is established that increasing the efficiency of the corporate client portfolio management system in the bank, in the modern conditions of the financial market development, should depart from the traditional channels of corporate business service. Building corporate business relationships with banks is impossible without the introduction of digital technologies in establishing such relationships. This will contribute to increasing the efficiency of the corporate client portfolio management system in banks.

Keywords

bank; management; corporate client portfolio; net interest margin; lending; deposit portfolio; client-oriented approach.

JEL classification: G210; E630; DOI:https://doi.org/10.33987/vsed.1-2(88-89).2024.76-91

UD classification: 336.717

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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