The main advantage of this method

Accounting features of real work in the field compared to less conflict, and reducing management costs. On the other hand, the lack of a strategic central planning left the bank without clear objectives and causes to live for today. In addition, conditions are created to artificially planned expenditure and underreporting of income from the business centers in order to create a more comfortable working conditions. Thus, short-term effect of the introduction of this method may result in further delays and competition and the inability to adapt to changing environmental conditions. Thus, we can conclude that both methods have certain advantages and disadvantages and none of them can be called optimal. The most promising are complex techniques that allow the organization to combine both methods of budgeting. For example, the construction of primary budgets by the method of "up" with the correction of these budgets in line with the objectives of strategic planning on how to "down." Thus the main objective of the budgeting system is to coordinate the organization's goals due to top management, and real detailed knowledge about how to achieve these goals, which are in the business center staff. Select the most convenient and quality of the budgeting system depends primarily on the bank itself - its size, structure, specialization, etc. Only a careful analysis of the credit institution, combined with knowledge of the characteristics of different types of budgeting will make the right choices and to develop optimal technology banking budgeting. Category: Fundamentals of Financial Management Bank