The main factors are

1) external factors that restrict the ability of the bank selectable aspect ratio of profit distribution. The most important of these include: legal factors (capital requirements, restrictions on dividend payments for some banks, a minimum fixed amount of deductions to the reserve funds), tax system, the average market rate of return on investments, inflation rate, the state of financial markets, especially stock, and 2) internal factors that restrict the ability of the bank's choice of proportions of profit distribution: the mentality of bank depositors, the bank's profitability, the need for investment in the bank and their volume, the level of riskiness of the transactions, the value of the coefficient of financial leverage, staff and the mechanism of its participation in the profit Bank, the concentration of control, the level of the current solvency of the bank. The mechanism of distribution of profits, depending on the type of dividend policy suggests the following sequence of actions. In the first phase of the net profit deducted mandatory contributions to the reserve and other funds required for special purposes as are prescribed by the charter of the bank. "Purified" the sum of net income is a so-called "dividend corridor" through which implemented the appropriate type of dividend policy. In the second phase of the residual net income divided by income, is capitalized, and income that is consumed. If the bank uses the residual method of dividend policy at this stage of calculations is a priority development fund development, and vice versa. Generated from profits fund of consumption divided by the dividend fund and consumption fund of bank staff, providing additional incentives for employees and ensure their social needs. The basis for this separation is that type of dividend policy and the bank's liabilities under labor agreements. Topic: Fundamentals of Financial Management Bank | Tags: property rights, process planning, profit management, a factor