One of the most important areas of improvement in the modern economy is banking management. It is a set of measures to organize the management of credit institutions in order to maximize profits. It is not enough just to develop separate steps to improve the life of the company, it is necessary that they function in a complex, as a single system.
With the coordinated work of all banking divisions, a continuous flow of resources should be ensured, and most importantly, a balance of assets and liabilities. Banking management performs the tasks set at the micro and macro levels. The first involves ensuring the solvency and financial stability of a credit institution, the rational use of all available resources. And at the macro level, the stability of the national currency should be maintained, its significance should be developed on the world stage.
Subject to the quality work of managers, the bank will be able to overcome any economic ups and downs. So, it will be able to establish itself as a reliable and sustainable organization. The main goal is focused on the same thing - making a profit. But any operation involves a certain amount of risk. The more profit one or another transaction brings, the higher the probability risk. Banking management is aimed at reducing its level and ensuring the least losses in the event of an unfavorable situation. Otherwise, the credit institution may fail not only in a certain field 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. Indeed, all the others depend on the state of one bank, and the decline occurs on the principle of a house of cards.
Thus, a competent manager tries to optimize the combination of profitability and risk. No operation is complete without risk; it must be, otherwise there is no sense in the activities of a credit institution. Banking management is a simultaneous study of the functioning of each unit, analysis of the information received and the development of specific measures to improve existing results. And then control should be exercised over the effectiveness of the measures introduced.
Based on the foregoing, the following banking management functions can be distinguished:
- the development of short-term goals and objectives should contribute to the achievement of a long-term strategic plan;
- a thorough analysis of all methods of influence on the main and auxiliary activities of the organization and the selection of the most effective;
- competent management of the authorized capital and the formation of funds to secure the bank in case of unforeseen situations or improve the lives of company employees.
Banking management operates on the basis of a number of principles. For example, most commercial banks are customer-oriented, that is, the goal of their activities is to maximize customer satisfaction. In addition, credit institutions are required to adhere to the norms and standards established by the central bank of the country, because this allows you to monitor and regulate the activities of the entire system. Each bank should understand that the risk of any transaction should be justified by the size of the profit and preferably protected by a reserve fund.
Do not forget that a credit institution operates on the principles of self-financing and self-sufficiency. The duties of the manager include such an organization of work in which these principles are fully implemented.