<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The advantage of the linear fractional differential equation for bank resource allocation and financial risk management is that it can test random fluctuations in different functional forms. Given this paper is modelling the asset allocation risk model for rural commercial banks, the linear fractional differential equation analysis method is used to make policy recommendations. The research results of this paper show that credit risk is significantly negatively correlated with the bank's resource allocation. The degree of negative correlation between different levels of credit risk and bank resource allocation is different. Appropriate liquidity risk can optimise the bank's resource allocation.</p>
</abstract>

The advantage of the linear fractional differential equation for bank resource allocation and financial risk management is that it can test random fluctuations in different functional forms. Given this paper is modelling the asset allocation risk model for rural commercial banks, the linear fractional differential equation analysis method is used to make policy recommendations. The research results of this paper show that credit risk is significantly negatively correlated with the bank's resource allocation. The degree of negative correlation between different levels of credit risk and bank resource allocation is different. Appropriate liquidity risk can optimise the bank's resource allocation.

Linear fractional differential equations in bank resource allocation and financial risk management model

Applied Mathematics and Nonlinear Sciences

This work is licensed under the Creative Commons Attribution 4.0 International License.

The advantage of the linear fractional differential equation for bank resource allocation and financial risk management is that it can test random fluctuations...

Linear fractional differential equations in bank resource allocation and financial risk management model

Pubblicato online: 30 dic 2021

Pagine: 729 - 738

Ricevuto: 17 giu 2021

Accettato: 24 set 2021

DOI: https://doi.org/10.2478/amns.2021.2.00148

Parole chiave
linear relationship, fractional differential equation, bank resource allocation, financial risk management

© 2021 Yanjun Yang, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Linear fractional differential equations in bank resource allocation and financial risk management model

Pubblicato online: 30 dic 2021

Pagine: 729 - 738

Ricevuto: 17 giu 2021

Accettato: 24 set 2021

DOI: https://doi.org/10.2478/amns.2021.2.00148

Parole chiavelinear relationship, fractional differential equation, bank resource allocation, financial risk management

© 2021 Yanjun Yang, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Parole chiave
linear relationship, fractional differential equation, bank resource allocation, financial risk management