The planning process in banks

Planning banking is the process of setting goals for the future and developing ways to achieve them. Planning is the identification of priorities for further development of the bank on the basis of analytical processing of information received about the status and trends of the market environment conditions. In order to plan not only remained a set of figures, it should provide a means to achieve the set targets (indicators), ie largely determine the stages of control and regulation. For the bank, in contrast to other business entities, based on the mechanism of planning is financial planning, which is essentially the process of developing a system of financial plans and planning (regulatory) benchmarks to ensure a development bank with the necessary financial resources and improve its financial performance the future. Financial planning - is the foundation and the most demanding component of financial management at the bank. It gives rise to the process of financial management of the bank defines its purpose, perspective, a sequence of actions, choice of methods and means of their necessary proportions. Financial planning involves the development of bank system of internal performance plans and the financial institution providing the bank's economic development, improve the efficiency of assets, income and growth of shareholder value. Financial planning should ensure that responsibility between decisions in a given period, and projections for the future. Financial planning is based on: the strategic plan of the bank's development in terms of defining the concept of its development, forming strategic objectives of the Bank, the tactical plan for the forthcoming period (usually a year) on the determination of measures and the establishment of specific objectives to achieve strategic objectives, development tactics of assigned tasks. Topic: Fundamentals of Financial Management Bank | Tags: Planning Process