One of the principles of governance - democracy

Provides for participation in the management of a wide range of bank employees, which provides a more complete identification of best practices and use of the resource potential of the bank. 12. Management must be efficient, ie costs for maintenance management personnel shall give multiple effect. Thus, the basic principles of asset and liability management is a scientific, comprehensive, systematic, objectivity, accuracy, reliability, effectiveness, unity of plan, promptness, interest, democracy, and efficiency. However, it should be used in managing assets and liabilities at any level. The bank's assets are distinguished by the degree of liquidity, profitability and risk. Assets of commercial banks, as well as any type of investment, have different levels of liquidity, ie, can be transformed into money in the cash and noncash form suitable for immediate execution of bank obligations to depositors and other creditors, as well as the speed with which can be carried out this transformation. Thus, banknotes and coins on hand can be used immediately for the issuance of private investors deposits, long-term credit is granted for the construction, can not be quickly transformed into a means for the correspondent account of bank or cash in his office. Various assets of the bank are characterized by different levels of income they give. The higher the level of liquid assets, the less it is profitable. The greatest profit banks offer assets in the form of loans and investments in securities. Category: Management Operations Commercial Bank | Tags: control