MODELING ACTIVITIES OF COMMERCIAL BANK THROUGH PETRI NETS

Igor Enicov () and Emilian Gutuleac

Annals of Faculty of Economics, 2017, vol. 1, issue 1, 325-334

Abstract: The relevance of the article is determined by the need to improve the methods of modelling and simulating commercial bank activity, including for the purpose of calculating, controlling and managing the risk of the bank, in the context of the transition to the application of Basel III standards. This improvement becomes necessary because with a direct transition to new regulatory standards internal assessments of the main risks become the initial data for calculating the capital adequacy of a bank. We believe that commercial banks are interested in developing existing practices of modelling and simulating activities, including risk management purposes. In other words, we must improve the formalization of logical and mathematical representation of connections, regularities and the explanatory theory for the operations in commercial bank. We believe that attaining similitude between commercial bank and its model by Petri nets has a number of advantages compared to other instruments. This involves some opportunities of continuous improvement of the theoretical model, the possibility of slight changes of the degree of homomorphism, the possibility of concomitantly including variables typical of deterministic models, stochastic models, as well as fuzzy (vague) models. It is important that Petri nets have a graphic representation with a particularly effective impact on intuitively understanding the systems dynamics. The article reveals the possibility of modelling the activity of a financial institution through Timed Hybrid Petri Nets. The purpose of this article is to study the possibility of using Petri nets for modelling activities of a financial institution. The present study involved the employment of universal methods of economic analysis, namely, the method of scientific abstraction, mathematical modelling and the method of functional analysis. The content of the article refers mostly to summarizing the extensions of Petri nets that can be used to model, review and evaluate numerical characteristics of financial institutions’ performance. This article deals with generalized timed Petri nets, timed continuous Petri nets, and generalized timed hybrid Petri nets. The main result obtained in the study and presented in the article is the argumentation of the possibility to analyze the quantitative and qualitative characteristics of a commercial bank with the help of Petri net extensions.

JEL-codes: C02 C60 G17 G21 G23 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:ora:journl:v:1:y:2017:i:1:p:325-334

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