Financial management of the bank: the nature and the basic building blocks

Bank Management is divided into organizational and financial. As an organizational solutions to common problems and specific management of the banking group, institutional structures and systems to ensure the bank's activities. Financial management of commercial banks - a system of principles, forms, methods and tools of monetary relations, financial management to ensure high efficiency and financial stability in the bank, taking into account market fluctuations in financial markets. That is, financial management means: 1. constant striving to improve the efficiency of banking activities in order to reduce costs and better results 2. adjustment of goals, objectives and programs of the bank, depending on the situation on the market yuktury 3. the need for a modern data base (computer networks and linkages with foreign currency and stock exchanges, other financial institutions) to implement the multivariate calculations to make informed and optimal decisions. Increase profitability and reduce risk, identify financial goals of the bank for immediate and future prospects are the main financial management of a commercial bank. Financial management includes the management of the bank: assets and liabilities, capital, bank risk management, profitability, liquidity and reserves; the planning process. Topic: Fundamentals of Financial Management Bank | Tags: Financial Management