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Abstracts

XIX conference

Analysis of financial condition of commercial bank using tools of fuzzy mathematics

Gorshkova K., Kovpak E.

V.N. Karazin Kharkiv National University Faculty of Economics, Department of Economic Cybernetics and Applied Economics, Ukraine, 61002 Kharkov, street Mironositskaya 1, Tel.: (093) 528-24-19 E-mail: gorshkova_karina@mail.ru

2 pp. (accepted)

In the present work we propose a simple method for comprehensive assessment of the financial condition of commercial banks, while allowing him to assess the risk of bankruptcy. The method is based lay years of research the authors on the application of the results of the theory of fuzzy sets in financial management [1-5].

The aim of research is to develop methods of complex analysis of financial condition commercial banks, which are not based on a priori defined factors in the convolution of predefined indicators, but use your intuition and experience experts - financial analysts, thoroughly knows the strengths and weaknesses of the estimated bank. The method presented in [1-4], is quite difficult to understand and use unfamiliar mathematics. Therefore, we tried to simplify the method, making it affordable for people without special mathematical training, which as a calculator is just a table Excel. We want to make sure that our method was the most common method of comprehensive financial analysis of commercial banks.

The presented approach allows the expert to the best formalize their fuzzy representation, transforming the language of words in the language of quantitative estimates. If the examiner knows the business from the inside, it would not be difficult to allocate precisely the factors that most influence the processes of loss of ability to pay, to compare these factors in quantitative terms and normalize them. Moreover, if the expert difficulty with the classification, he may in the course of the valuation to successfully apply fuzzy descriptions.

References.

1. Nedosekin SA Application of fuzzy set theory to problems in financial management / / Audit and Financial Analysis, № 2, 2000. p.46.

2. Nedosekin SA Fuzzy risk analysis of multiple fund investments. St. Petersburg, Printing House "Sesame", 2002. p.181.

3. Nedosekin SA Financial analysis under uncertainty: the probability or fuzzy sets? / / Audit and Financial Analysis, № 1, 1999. p. 46.

4. Altman E.I. Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy / / The Journal of Finance, September 1968, pp. 589-609.

5. Altman E.I. Further Empirical Investigation of the Bankruptcy Cost Question / / Journal of Finance, September 1984, pp. 1067 - 1089.



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