Analysis on Loan Scale Allocation Problem in Branches of Commercial Banks Based on Progressive Linear Programming Model
Author:Jiaxuan Du, Yizhu Jiang, Hua Liu Author Unit: School of Economics and Finance, Anhui University of Finance and Economics, Bengbu, Anhui, 233030. P. R. China
Abstract：The loan and deposit scale and its allocation scheme among branches not only directly affect the profits of the
commercial bank, but also affect the economic development structure, level and efficiency. Taking the commercial
bank A as the example, by means of correlation analysis, regression, grey prediction, etc. and the multiple-
objective progressive linear programming model, this paper first comes up with the relationship between various
RMB deposit balances of the financing institution and the macroeconomic variables and the deposits and loans
in this bank, based on which this paper further proposes the optimal allocation scheme on loan scales in branches
to maximum the net income of total incremental deposit and loan interest of the commercial bank A without
considering other sources of funds. Secondly, according to the macroeconomic indicators and forecast results
from 2010 to 2017, this paper proposes the improved model with consideration of other sources of funds. Finally,
this paper proposes some relevant suggestions that can be extended to common commercial banks based on the
empirical results.
Keywords：Commercial bank; Multiple-objective linear programming; Loan-to-deposit ratio; Loan scale allocation
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