The Bank is a commercial organization, which is aimed at attracting funds in cash, as well as for their placement on a return basis. Of course, the organization of the activities of a commercial bank is carried out by a special board, which bears all responsibility to the bank council and the general meeting. This structure includes such representatives who occupy larger positions. In such a concept as the organizational structure of a commercial bank, it can be distinguished that it can be regulated in various ways, which depend on the size of the bank, on the number of clients, on the operations performed, on the number of types of services rendered and on many other areas.
Organization of the activities of a commercial bank is not only providing the banks with support from the board, but also coordinating the work of various banks. There are principles that are designed to ensure that the organization of a commercial bank operates correctly. The following principles are distinguished:
- The bank should really work on the basis of its available resources.
- Economic independence is necessary, in which banks are responsible for their activities.
- All relations that arise between the client and the bank are based on market relations, during which liquidity, risk and profitability of the bank are determined.
- The activities of the bank can be regulated only by economic methods, but not by administrative methods. That is, the state offers methods, but to accept these methods or not is the choice of each bank.
The most important issues in such areas as the organization of the activities of commercial banks are decided by the board, which is the representative of shareholders and owners of the bank. The council has many important directions, but the most important thing is to provide the necessary level of return on invested capital. The council must also take care of ordinary customers. The main functions of the council are to determine the strategic functions and goals of banks and create a policy.
A commercial bank, when compared with other similar companies, identifies several socio-economic entities. The first is that the bank serves as a tool for any financial transactions. The second is that the bank itself is one of the subjects of economic relations. The third is that the bank is a cash accumulator. For example, receiving money from the population through deposits, the bank accumulates the total amount that it can use in the future to achieve banking goals. The fourth is that the bank can be a distributor of funds, directing these funds to loans or other services. And the fifth is that the bank can be performed as an information tool. This can be any information about customers, their account status, the status of any operation and other information. Thus, the organization of a commercial bank carries out many processes.
As for the concept of the organizational structure of a commercial bank, it is the most important component for the successful achievement of goals. The success of a bank depends on the relationship between subordinates and the manager, as well as on the level of organization of a commercial bank. Acting in different market conditions and specializing in different types of services, the organizational structures of banks are also different from each other. Each organization of the activities of a commercial bank has both its advantages and its disadvantages, which are taken into account when choosing one of the organization methods.