The most important element of the banking system is the organizational structure of the bank. It is a complex of various services and departments, each of which has its own direction, task and purpose of functioning, but at the same time closely interacts with everyone else. The bank’s organizational structure and its ability to conclude profitable transactions depend on how well structured and coordinated the bank’s organizational structure is.
The leader faces the difficult task of forming the departments and services that are necessary in this economic situation. In addition, they must ensure the efficient operation of units, and this requires clear control and discipline.
In general, the structure can be divided into two huge blocks: internal and external. The first includes all kinds of departments, services, and more. And the external structure group includes an extensive network of various branches of subsidiaries, bureaus and similar organizations.
The bank’s management structure assumes the existence of departments that can resolve issues and problems as soon as possible, respond in a timely manner to the changing market conditions, and monitor the clear implementation by subordinates of their tasks. In addition, the management system should evaluate the main indicators characterizing the overall performance of the entire lending institution and, based on the analysis, implement measures to improve current activities.
Most commercial banks are joint stock companies. Therefore, the highest management body of such an institution is usually considered the board of directors. He usually meets once a year to solve basic issues and problems or as an emergency in case of unforeseen situations.
The executive board is the management department. The chairman of the bank appoints his deputies and organizes the most important departments. He is directly interested in the success of the credit institution, as he is personally responsible to the meeting of shareholders.
As you know, 80% of all banking operations is credit, so the organizational structure of the bank cannot exist without a well-formed credit department. This department carries out large-scale work to establish specific requirements for potential borrowers, classify loans, diversify interest rates for various types of loans, reduce the risk of defaults and much more.
The organizational structure of the bank is established by each joint-stock company at its own discretion and is fixed in its accounting policy, but it necessarily includes a department for working with legal entities and individuals, a deposit department, an accounting service, a cash settlement department, a security and economic support service.
Large commercial banks form their own audit department, which allows to control the accuracy of reporting and analyze performance indicators, which significantly increases the bank's prestige in the international arena.
The most striking example in our country is the Savings Bank of the Russian Federation. It is also a joint-stock company, but is organized by the state itself, therefore it is considered one of the largest lending institutions. The structure of Sberbank of Russia is formed in such a way that the main shareholder is the National Bank of the country, which has more than 50% of the shares of the authorized capital. The rest of it was distributed among legal entities and even individuals. This is the only bank in the country that is endowed with guarantees of reliability by the state.