Relationship portfolio management: case of corporate banking
Abstract: After about three decades, it is a few years that Iranian banking industry
is experiencing a more competitive market after the entrance of private
banks to the market. Different objectives of a bank can be summarized to
the optimized resource allocation between different customers. For
achieving this objective, a very first step is defining a framework that
can distinguish between different categories of customers. For developing
such a framework, three main areas were identified within literature. These
three areas include Relationship Portfolio Models, Network Theory and
Business Banking Relationships. After reviewing these three areas, an
initial model was extracted that was examined by several interviews with
banking experts in Parsian Bank, Iran. After finalizing the model, a small
sample group of corporate customers were chosen and relevant data were
gathered. By using the MCDM (Multi-Criteria Decision Making) technique of
PROMETHEE this customers were ranked based on the variables and their
relevant indicators.
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