An application of goal programming model to a bank balance sheet management

Abstract

The research presented the application of a goal programming model to the balance sheet management of South African Banks in segmented markets based on multiple goals such as asset accumulation, total liability, shareholders wealth, profitability, earnings and total goal achievement. The significance of the study can measure the effectiveness of policy decisions and plan future investments effectively. The model determined the optimal structure of the balance sheet based on the fulfilment of strategic objectives. Data collected from annual financial reports covered the period 2011 to 2019. The solutions showed the achievement of all goals and possible improvements in target values for optimization