Commercial banks - is it a tool of creation or enrichment?
The topic touched in principle can not be statedon one page of printed text. Therefore, we schematically and fragmentally show a joint-stock commercial bank with foreign investments. Do banks always develop or often degrade (hiding behind bright advertising leaflets)? Is the destiny of the sold institution a private matter only to the buyer? Is the existing supervision of the Central Bank sufficient for the activities of the top management of a particular commercial bank?
Brief coverage of the macroeconomic role
The world economy is dominated by two-levelbanking systems, headed by central state banks. Their first level consists of commercial banks - multifunctional agents of the state economy. Under the leadership and in cooperation with the Central Bank of his country, commercial banks operate. The monetary circulation (cash and non-cash) is made.
"Bad" foreign management. His strategy
Joint-stock form of organization of commercial banksoften involves the purchase of a controlling stake by major foreign banking concerns. In our markets, they come because of the high discount rate - the main reference point for "cheap" and "expensive" money. Our money is very expensive.
It's bad when greed exceeds talent
A bank is a fragile structure, and it mustWith adequate management. For some reason, the Central Banks started commercial planning on their own accord. This is a very important point. Inadequately planning commercial banks is a threat to the integrity of the banking system. Here all the tricks are good: for example, the high cost of rent. At the same time, the foreign manager gets everything he needs - short-term profit. But foreign managers do not think about the integrity of our banking system, their area of responsibility coincides with the term of the contract. By the way, this is an international problem.
Do not forget that commercial banks areLarge employers who provide income for hundreds of thousands of families. But the employees of Bank A branch are unemployed, and the "daughter" is weakening, losing another "workhorse" among its branches. And here in our bank "A", by the end of the quarter, 20 such branches are being cut. For three years of such work will remain only half of the branches with good profitability. And where is the Central Bank? He's on the sidelines.
Indicators of professional incompetence of management
Excessive focus of management onmaking a profit for his foreign boss should not objectively reduce the attractiveness of the bank's tariffs. The principle of non-depreciation of tariffs can be fully stipulated in the sale of the organization. After all, domestic commercial banks are a structure that should not initially degrade its quality.
The central bank and the state should be interested inthe real reason why suddenly the bank's deposits began to resemble current accounts by their interest, and loans became objectively non-competitive. In the state, the scale of personal responsibility of the top management for the deterioration of the quality of banking tariffs should be developed - the basis for its further development and the sign of excessive "squeezing out" of financial resources from the bank, a violation of the harmony of its development.
Concluding the article, I would like to note that commercial banks are institutions, daily and steadily working to ensure that the financial system of the state lived and developed.
