Providing high quality earnings, is formed

In the formation of bank profits should be primarily implemented reserves growth due to its operating activities. 4. Providing the necessary payments of income on the invested capital to the owners of the bank. This level with the success of the bank should not be below the average rate of return on the capital market, and if necessary to compensate the increased business risk and inflation losses. 5. Ensure the formation of sufficient financial resources at the expense of profits in accordance with the objectives of the bank in the period ahead. Since profit is one of the main internal sources of funds of the bank, its size determines the potential for the establishment of common funds and reserves. 6. Ensuring continuous growth of the market value of the bank. This task is designed to ensure the maximization of wealth owners in the planning period. The growth rate of market value is mainly determined by the level of capitalization of profits earned by the bank during the period. Each bank is based on the conditions and objectives of the activity, the system determines the optimization criteria of profit distribution in part is capitalized and the portion consumed. 7. Ensuring the effectiveness of programs, staff participation in the profits. Program staff participation in profits, designed to harmonize the interests of the owners of the bank and its employees shall, on the one hand, to effectively stimulate the labor contribution of these workers in the generation of profits, on the other - to ensure an adequate level of social protection, the state under current conditions do not fully meet in the state. Category: Management Operations Commercial Bank