Distribution model of assets in the asset–liability management of banks

This paper analyzes the characteristics and the defects of current research, and establishes a decision-making model of asset–liability portfolio optimization by means of linear programming. Based on the requirements of liquidity, security and profitability, it aims at the maximal return on the assets. It is subject to constraints of laws, regulations and operational management. It is helpful to the optimal quantitative distribution of different type of assets in commercial banks.