Customers of the bank

Customers of the bank, in turn, would like to receive a high return on funds placed on current, deposit and other accounts in the bank and borrow money at different times under the lowest possible rate. The leadership of the bank, on the one hand, it should provide shareholders with an acceptable level of dividends is related to income on the capital invested in other financial institutions, and middle-income countries, who are shareholders of the enterprises of other economic sectors. If this problem is not solved, then the possible outflow of equity capital in that financial institution. In addition, the main income in various forms - in the form of interest income and fee income in the form of - banks receive from transactions with customers, rather than the rational allocation of own funds, whose share of bank liabilities is negligible. It is therefore necessary to offer our customers competitive interest rates on deposits and commission rates. Also, keep in mind that each investor is a potential borrower and the borrower - the depositor. Therefore, the bank must be able to meet the legitimate and reasonable needs of customers with credit facilities. The inability or unwillingness of banks to meet these needs leads to an outflow of customers and, consequently, a reduction of bank liabilities, which may be the source of assets that provide income. However, the most liquid assets, or does not provide revenue or yield little. Asset returns tend to have low liquidity. So, the basic contradiction that must be resolved in the management of assets and liabilities of the bank - this is a contradiction between profitability and liquidity. The main objective of asset management and liability management is to ensure that their structure, which allows you to generate revenue without going outside liquidity. Under the asset management refers to ways, methods and procedure for placement of attracted funds to ensure the profitable operation of the bank and maintain its liquidity. Depending on the strategic objectives of the bank and he has chosen range of clientele management of commercial bank determines the optimal structure for its assets and liabilities. The management of assets and liabilities prior ordering of the strategic plan of the bank, which identifies the main sectors of the financial market, which bank would work as well as key indicators of its activity in the planning period. Category: Management Operations Commercial Bank