?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=http%3A%2F%2Fmiis.maths.ox.ac.uk%2Fmiis%2F637%2F&rft.title=Optimization+of+Collateral+Value+Distribution&rft.creator=Bo%C5%A1njak%2C+I.&rft.creator=Kreji%C4%87%2C+N.&rft.creator=Milanovi%C4%87%2C+M.&rft.creator=Nikoli%C4%87%2C+N.&rft.creator=Petkovi%C4%87%2C+P.&rft.creator=Raki%C4%87%2C+D.&rft.subject=Discrete&rft.subject=Finance&rft.description=Loan+Loss+Provisioning+(LLP)+is+an+amount+of+reserve+that+banks+%22put+aside%22+to+cover+loss+in+case+that+loan+goes+in+default%2C+meaning+that+clients+do+not+repay+it.+It+is+a+safety+buffer+for+preserving+banks+liquidity+and+capital+adequacy.+On+the+other+hand%2C+the+Loan+Loss+Provisioning+is+a+cost.+In+the+Profit+and+Lost+statement+of+banks%2C+LLP+decreases+profit.+It+is+a+good+tool%2Fmechanism+for+risk+management%2C+but+also+expensive+one%2C+and+that+is+why+it+is+important+for+banks+to+optimize+it+in+every+possible+way.%0D%0A%0D%0AThe+aim+of+optimization+is+to+distribute+collateral+value+to+the+connected+loans%2C+in+a+way+to+minimize+amount+of+LLP.+It+can+be+done+easily+on+a+one+loan+level%2C+but+creating+a+universal+algorithm+that+is+applicable+to+all+loans+and+all+collaterals+on+the+Bank+portfolio+level%2C+is+the+goal+to+be+achieved.&rft.date=2014&rft.type=Study+Group+Report&rft.type=NonPeerReviewed&rft.format=application%2Fpdf&rft.language=en&rft.identifier=http%3A%2F%2Fmiis.maths.ox.ac.uk%2Fmiis%2F637%2F1%2Fotpreport.pdf&rft.identifier=++Bo%C5%A1njak%2C+I.+and+Kreji%C4%87%2C+N.+and+Milanovi%C4%87%2C+M.+and+Nikoli%C4%87%2C+N.+and+Petkovi%C4%87%2C+P.+and+Raki%C4%87%2C+D.++(2014)+Optimization+of+Collateral+Value+Distribution.++%5BStudy+Group+Report%5D+++++