Subject The article offers a method to increase the competitiveness of commercial banks based on dynamic view of competitive processes through the implementation of inter-regional expansion. Objectives The purpose is to identify the specifics of the banking services market functioning and its opportunities for entrepreneurs, to provide a rationale for improving the competitiveness of commercial banks when implementing the policy of inter-regional expansion. Methods The study employs the methods of logical (inductive) and mathematical and statistical analysis. Results When assessing the possibility to expand the activities of a commercial bank through inter-regional expansion into the areas adjacent to the Tula Oblast, I reveal a possibility of increasing the potential interest income by more than four percent. Conclusions I conclude on the possibility for a commercial bank to increase its competitiveness when implementing the policy of inter-regional expansion to the neighboring areas.
Keywords: competitiveness, interbank competition, geographical spread, attracted and deposited funds, linear model
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