Financial planning provides for the bank

Financial planning in a bank provides for: the development and harmonization of the financial model of the bank forming the forecast balance of resources and investments, the calculation of forecast financial performance, a plan of capital movements, banking plan, plan development and implementation of new banking products and services, budgeting Bank , setting limits on the cost of the bank, the definition of the minimum, sufficient margin of budget revenues, calculation of tax payments and compulsory contributions, calculation of the targets and standards. Factors influencing the specificity of planning in different banks: bank size, financial status, organizational structure and decision-making mechanism, branch network, participation in the banking consortium, the prospects of structural changes, severity of competition, the level of the bank's operations, the need to meet regulatory requirements; desires and needs of the client. Source phase of planning - strategic financial planning, providing the main directions and target parameters of the financial activities of the bank by choosing a common financial policy of the bank, which, in turn, determines the objectives and parameters of tactical financial planning - a process that allows the transformation of goals, objectives and measures for the bank their implementation in specific absolute and relative indicators and standards by which to manage the bank branches in the plan period. Tactical Financial Planning is the basis of developing and bringing to the direct perpetrators of the budgets for all aspects of the bank. Operational financial planning activities of the bank associated with the determination of optimal financial transactions and the redistribution of financial resources between the departments of the bank. The basis for financial planning in the bank is the financial policy - part of an overall policy of the bank. Topic: Fundamentals of Financial Management Bank | Tags: Financial Planning