Development Fund of the Bank

Foundation of the bank is typically used to support the activities of the bank, its further development and acquisition of capital assets. The bank's charter may provide for the establishment and other funds necessary for the bank. 2. Profit consumption distributed profit) Payment of dividends; material incentives and social welfare workers of the bank. With the earned income for the year form the foundation of banks paying dividends. Fund dividend payments used to accumulate the funds needed for the planned payments to shareholders (founders), and the entire period of time prior to the approval of such payments by the general meeting of shareholders (founders) in the possession of the bank. The policy objective of profit distribution - the optimization of the proportions between the parts arrived, and the consumption share of the profits are capitalized. Proceeding from this basic goal in policy of profit distribution of the bank solves the following main objectives: to ensure owners receive the required rate of return on invested capital, providing strategic development priorities of the bank at the expense of profits, capitalized, providing stimulating labor activity and additional social protection staff, ensuring the formation of the necessary amount of funds and bank reserves. Specificity of the challenges facing each individual bank in the process of its development, the difference between external and internal conditions of their activities do not allow to develop a unified model of the distribution of profits that would have a universal character. So the basis of profit-sharing mechanism is a specific bank account in the analysis and the process of distribution of the individual factors associated with this process is ongoing and the following activities of the bank. Topic: Fundamentals of Financial Management Bank | Tags: Profit Development Foundation