Banking Management: its main features
One of the most important areas of improvementin the modern economy is banking management. It is a set of measures to organize the management of the activities of credit institutions in order to maximize profits. It is not enough simply to develop individual steps to improve the life of the company, it is necessary that they function in a complex, as a unified system.
With well-coordinated work of all bankingunits should be provided with a continuous flow of resources, and most importantly - the balance of assets and liabilities. Banking management performs tasks set at micro and macro levels. The first involves ensuring the solvency and financial stability of the credit institution, the rational use of all available resources. And at the macro level it is necessary to maintain the stability of the national currency, to develop its importance on the world stage.
Under condition of qualitative work of managers, bankcan overcome any economic ups and downs. So, it will be able to prove itself as a reliable and stable organization. The main goal is getting profit. But any operation involves a certain amount of risk. The more profits a particular transaction will bring, the higher the probability risk. Banking management is aimed at reducing its level and ensuring the least losses in the event of an adverse situation. Otherwise, a credit institution can fail not only in a certain area of activity, but also in general functioning. That is, there is a great risk of bankruptcy, and this, as you know, leads to the destruction of the banking system as a whole. After all, from the state of one bank all the others depend, and the fall occurs on the principle of a house of cards.
Thus, a competent manager triesmaximize the combination of profitability and risk. No operation is not without risk, it should be, otherwise there is no sense in the activity of the credit institution. Bank management is a simultaneous study of the functioning of each unit, an analysis of the information received and the development of concrete measures to improve the available results. And then it is necessary to exercise control over the efficiency of the implemented measures.
Based on the above, we can distinguish the following functions of banking management:
- the development of short-term goals and objectives should contribute to the achievement of a strategic plan for the long-term;
- careful analysis of all methods of influencing the main and auxiliary activities of the organization and selecting the most effective;
- competent management of authorized capital and the formation of funds to protect the bank in case of unforeseen situations or to improve the life of employees of the company.
Banking management carries out itsactivities based on a set of principles. For example, most commercial banks are client-oriented, that is, the goal of their activities is to maximize customer satisfaction. In addition, credit institutions are obliged to adhere to the norms and regulations established by the central bank of the country, because it allows you to monitor and regulate the activities of the entire system. Each bank should understand that the risk of any operation should be justified by the size of the profit and preferably protected by a reserve fund.
Do not forget that the credit organizationfunctions on the principles of self-financing and self-sufficiency. The duties of the manager include such organization of work, in which these principles are fulfilled in full.
