Corporate Loan Management Model As The Instrument Of Banks’ Product Optimization

In terms of dynamic market circumstances in the Croatian banking market, the success of the banking business depends, among other things, on the selection of appropriate banking products and their optimal combination. Adequate planning and managing the supply of banking products is one of the most important preconditions for its success. In this sense, the need for performing the appropriate researches focused on the formation of new management methods that will, with already existing instruments, enable the adoption of more appropriate business decisions and, as a consequence, better managing of banking business is logically imposed. Accounting information shows the movement in business operations in past periods and is the basis for further activities planning, as well as analysis of business objectives and results achieved. In this sense, models for managing the assortment of banking products should be based on that reliable information in order to assure that planning and management took place on realistic basis. Supply of banks’ loans to corporate sector is significant for the economic development of the country as a whole. Availability and acceptability of such loans by the users, affects a number of macroeconomic variables particularly including increase in production, employment and exports as the most important sub goals focused to the achievement of the main goal - increase in the welfare of Croatian population. The aim of the conducted research is comprised in formation of the model that provides appropriate information to management for planning and conducting the corporate sector loans. Statistical and mathematical methods were employed on the accounting data as the main research methods focused toward the model estimation. The model derived can be used as a decision support tool that supplement the management information system database with information unavoidable in process of managing the loans inside the group of corporate sector loans. In addition, this model provides the information regarding the potential for further development of this very important segment of banks loans. Practical application of the research performed is shown in the operations of one big bank in the Republic of Croatia.