An Analysis of the Corporate Clientele of OTP Bank

Abstract

It is definitely useful to conduct an analysis of a leading bank and its corporate clientele in the wake of the recent economic upheaval. The current study covers the period between 2011 and 2016, and applies linear correlation analysis to examine the effect of the decrease of the base rate, the fluctuation of interest rates, and changes in loan policy on total outstanding corporate loans and deposits. It is pointed out that the corporate sector, which provides the highest revenues to banks, is very susceptible to fluctuations in the market and the changes in conditions.
The analysis reveals which factors analysed have a strong correlation and high impact, which may provide relevant insights to OTP Bank in drawing up new offers and conditions for its corporate clients, so that it can keep its profitability and leading position in the market in the future.
Micro-businesses, small businesses, medium-size businesses and large businesses are analysed separately. The former two categories react to all changes in economic conditions and policies more sensitively than larger corporations in any time period.
The analysis covered the correlation between total corporate deposits and the national base rate, and showed that they are reversely proportional. The statistics also examined the relationship between total loans outstanding, and changes in interest rates and terms and conditions. It is again revealed that micro and small businesses show stronger correlation than medium-sized and large corporations.
It is also proven that interest rates have a stronger impact than terms and conditions, showing that the corporate sector is very susceptible to changes in interest rates.