Managing the financial performance of a commercial bank under the scheme
In the highly dynamic environment of the modern economythe banking sector is one of the fastest growing, and effective management of financial results is one of the main factors of this growth. Modern commercial banks carry out about 200 types of services - products and operations. Such a wide range of banking activities presupposes a serious scientific approach to the study of banking. But before studying various aspects of banks' activities, it is necessary to dwell on consideration of such an important issue as the bank management model, without a clear and coordinated functioning of which it is impossible to implement the function of financial management and fruitful banking activities. It is precisely the well-established mechanism of interaction between governing bodies, management, various divisions and employees, a competent organization of financial management, in an enterprise whose specific form is a commercial bank, is the starting point for its successful operation. Their correct construction is of great importance during the entire period of the existence of a particular bank and ensures the effective management of financial results.
As a rule, the general management of the current work of the bank is exercised by the Board. Its competence includes supervision of such moments as:
- accounting, reporting, intrabank control;
- results of commercial work, as well as management of work with assets;
- overall management of financial results;
- control over the implementation of internal and external regulations;
- approval of audit materials, reports, audits;
- consideration and approval of annual reports, various financial projects, and other acts.
- selection, training, placement and certification of personnel, etc.
For effective work of the bank, it is necessary to competentlydetermine the functional positions of all employees, as well as their relationships within the bank. Every bank employee should clearly know his place in the functional management system of the bank, imagine what management expects of him, what his duties and powers are, and how to build service relations.
This is realized through a schematic constructionmanagement structure of the bank with a system of internal relationships, supplemented by regulations, instructions and job descriptions. In its construction, it is necessary to take into account that there are no standard schemes of organizational structure, since each commercial bank is unique in its own way, therefore the scheme represents only the most general outlines of the banking management model, and therefore it should be accessible for understanding and not act as a theoretical standard . As a rule, with difficulties in drawing up the scheme of the organizational structure, defects in the organization are revealed, that is, there is a fact that over time its structure can become inefficient and cumbersome. When preparing the bank's scheme, it needs to be carefully analyzed, this will reveal the insufficiently controlled links of the banking process, in the course of revealing the lines of interdependence and relations within the bank.
As with most models, the schematicthere are positive and negative sides. The scheme allows bank employees to understand the changes occurring in the bank, it can be used as a matrix for possible future reorganization in the future to ensure the best management of financial results.
Among the drawbacks of using schematicthe following can be distinguished. The structure of the bank quickly becomes obsolete. It is also difficult to reflect informal relations in the scheme. Schemes are inflexible and show only stable and formalized channels of interactions. As indicated above, the schematic construction of management ties in the bank should be supplemented by various instructions, and this can cause serious problems in ensuring the effective document circulation and manageability of the bank as a whole.
Usually the organizational model of the bank is built on the principle of functional subordination, because most of them are universal, and they are characterized by such an organizational structure.
In connection with the fact that any considered modelhas its pluses and minuses, in its construction it is necessary that the work of bank employees be rationally organized, effective management functions are ensured. The creation of such an organizational structure is the strategic task of bank management.