Business — Banking — Management — Marketing & Sales

In banking practice, you can find many types of banks.

In general, a rough structure of a commercial bank (the average volume of operations performed) can be represented as follows:

The Board of Directors

Board Bank

Credit Committee

Audit Committee

Office of Planning and Development Banking

Department of the organization of commercial bank activity and bank liquidity management

Economic Analysis Division and the study of customer creditworthiness

Division of frameworks and plans of commercial bank

Marketing and communications with clients

Management of deposit transactions

Deposit Operations Division

Securities department

Credit Management

Front short and long term credit customers

Department of lending to households

Department of nontraditional banking, credit related

Office of mediation and other operations

Department of guarantee operations and powers of attorney

Banking Services Department

Division for Operations with securities

Manage the organization of international banking transactions

Department of foreign exchange and credit operations

Department for International Settlements

Accounting and operational management

Operations Department

A Treasury

Full Front

Service

Maintenance department

Legal Department

Personnel department

Management Division and the introduction of computers

Audit Division

However, regardless of the operations they perform, the legal form of organization and their activities, each bank makes its own specific product that is nevertheless mandatory for all of them a set of specific control units. Among them:

1. Tip of the bank.

2. Board.

3. General management issues.

4. Commercial activities.

5. Finance.

6. Automation.

7. Administration.

In the first block — the Council of the bank, usually consists of its founders. Their number can be quite varied, from one or two to several dozen. In its pure form, however, there are private banks, which was founded by some individuals. Predominant form of ownership of the banks in the global banking practice is a joint-stock form of ownership, where both founders and shareholders are legal entities and individuals of different forms of ownership.

Board of the bank approves the annual report of the bank, organizes an annual meeting of the founders and shareholders, shall or may be involved in strategic issues of banking activities.

The second unit — the Board (Board) is responsible for the overall management of the bank, according to the strategic directions of its activities. The Management Board comprises senior executives (managers) of the bank: Chairman (President, CEO) of the bank, his deputies, heads of major divisions of the bank. The Management Board consists of members employed by the bank’s owners to organize the work. In the Board may include (or lead him) and persons who own all or part of this credit institution.

In the third block — the block of general management issues include the organization of planning, forecasting the bank’s activities, training methodology, security and legal services. The purpose of this unit is to provide a focused development of the bank, the implementation of its tasks, manage his income and expenses, to ensure resources meet the requirements of the Central Bank’s main areas of activity (asset quality, capital adequacy, liquidity, etc.). Most often, such issues are addressed within the framework of planning and economic management. Its activities are concentrated on the analysis of current operations (revenues, expenses, earnings, liquidity), the formation of capital, planning units of the bank head offices and branches, methodical support. Managing finances can be allocated to independent management (directorate).

Commercial activities (fourth block) covers the organization of various banking services (loans, investments, foreign exchange, trust, and other active operations). This includes everything related to servicing clients on a commercial (paid) basis. This unit is the focal point, where the bank earned income. This includes: credit management, operational management, securities transactions, foreign exchange, etc.

Credit management is concentrating all the work on the formation of the loan portfolio, lending to clients, monitoring the security of loans, monitoring of credit activities of branches, the analysis of credit transactions and their methodological provision. Initially, the department of loan portfolios considers applications for loans, including the examination of contracts, feasibility studies, analysis of financial condition of borrowers, their charters. Here we are preparing proposals to the credit committee of the bank to consider the issue of large loans, we study the proposals for the provision of bank guarantees, analyze and develop recommendations for optimizing the structure of loan portfolio.

In the credit department focused execution of credit agreements and the preparation instructions on the operational management of grant or loan repayments, monitor the timely repayment of principal and interest due, execution of additional agreements on the extension of credits for the systematic analysis of the financial situation of the borrower, developed and adopted measures for early recovery of loan debt, provide monthly reports on the status of loans and interest paid. Department employees provide recommendations to optimize the structure of credit investments, introducing new forms and methods of lending to customers.

In the department of control over the design of secured loans are collateral agreements and encumbrances to be in control of the state of property taken as collateral, carried out to return long overdue, are preparing proposals for writing off bad debts, improvement, machinery repayment of overdue loans.

Credit control department of the bank’s branches shall supervise the observance of these units limits, considering their application limits the possibility of their excess, conducts analysis, inspection of the credit operations of branches, prepares proposals for its improvement.

As part of the credit control department can function methodology and analysis. Its mission includes the development of normative documents governing the bank’s lending activities, preparation of quarterly and annual reports on these transactions, the analysis of credit market conditions, the dynamics of interest rates, making recommendations for improving the structure of credit investments and interest rates. This work is usually the bank may be concentrated in its planning and economic management, with both scientific and methodological support credit activities can be organized in the relevant work in all major areas of banking.

As part of the credit department of the bank fairly common to see department resources attracted for the implementation of active operations. Taking into account the specific conditions of this division of the bank may be allocated to independent management (in practice, such a construction device management occurs quite often). In deposit banks, such control is essential.

Banks, however, earned not only on the loan application and receipt of payments from customers for its use. Among the banking services to a prominent place occupied by clearing operations for the implementation of which the banks receive a commission.

Organizes the work of the bank in the area of cashless payments operational management, which provides a complete service for the settlement, current and loan accounts, transactions on other bank accounts.

The main function of the operating staff is customer service, is to receive from businesses, organizations, cooperatives, societies and individuals of payments to withdraw from their accounts of funds, receiving and issuing settlement checks, and the subsequent admission by him of money to customer accounts, conducting transactions letters of credit, advising clients on the proper completion of payments, for whatever form of payment, for crediting or debiting.

As part of a commercial bank is located, and management of the bank’s operations with securities. This administration has been accepting, storing, keeping of securities, allowing the bank to get this work a certain commission.

As a self-care management staff can speak foreign exchange management.

The fifth unit is designed to ensure that interbank cost accounting of the bank’s own activities as a commercial enterprise. In the financial block includes such departments as accounting, the department interbank payments and correspondent banking, cash. In some cases, to this block include department and collection of those banks that are authorized to collect cash.

Sixth block — the block of automation is also compulsory element of the structure of a commercial bank. Cash flows (loans, payments and other transactions), which pass through a modern bank, can not be processed manually, you need a set of technical means, electronic machines. This block is a technical unit, which provides electronic data processing.

The seventh unit is called an administrative unit. It is composed primarily includes personnel department (HR) of the bank, which provides recruitment, selection of candidates wishing to work in a bank on certain positions, skills development lending institution, reception, promotion and dismissal of staff. In the inter-bank competition, the formation of high-level personnel is an integral part of the bank as a commercial enterprise.

Go to this block include such units and the bank, as the secretariat, the office, as well as business units, carrying out maintenance of the bank, its economic and social needs, etc.

In the structure of modern commercial banks, in addition to offices and departments also function as the Audit Commission and various committees, including the credit committee.

The Audit Commission shall supervise the work of the bank (compliance cost estimates for the bank as a whole and its individual units, etc.).

The Credit Committee is not an independent division of the bank, its membership includes officials from other departments of the bank, as well as other persons nominated by approved by the bank. The Committee was created to enhance and improve the quality of managerial decisions, the definition of strategy in credit operations, the coordination of the implementation of monetary policy and decision-making on matters of principle. In its work, the committee provides strategic and tactical development of credit operations, examines the major regulatory guidance documents on the maintenance and integration of credit operations, will decide on financial aid branches of the bank, to issue large loans, set interest rate for credit transactions, etc. etc.

Of course, this scheme can not be a universal standard, but it gives some idea of how to be organized by the Bank from the perspective of its structure. Each individual bank, based on its concept of development, it faces ongoing challenges and opportunities that can build for themselves the management structure, in accordance with their own interests.

It is important to overcome the negative aspects of the structures that develop in some. The analysis shows that a number of banks underestimated the role of legal departments, no department of marketing and communications with customers. Often considered that the department of economic analysis and research can operate mainly in large and medium-sized banks, meanwhile with the position of the world experience every bank, including small, has its own research structures for studying certain aspects of the activities in which the interest given credit institution .