The system and methods of financial analysis

During the formation of an effective system of financial management of the bank becomes important methods of analysis of their financial activities. Relevance for today is the issue in-depth analysis of areas such as reserves increase financial performance, revenues and expenses, the rationality of cash flows, financial condition, etc. Financial analysis of the bank - this is the process of examining the financial condition and results of the major financial activities of the bank in order to identify reserves to increase its market value and effective development. In today's bank financial analysis is not simply an element of financial management, and its basis, as financial services, is known to be prevalent in the bank. The management of this activity is impossible without analysis. The financial analysis provided in the bank: the definition of values ​​and standards of performance of the bank, set by external regulators, identifying and analyzing the parameters describing the management of assets and liabilities of the bank as a whole and its control of certain kinds of active and passive operations, identification and analysis of indicators characterizing the process management commissions and trading operations of the bank, the definition of values ​​of the internal indicators and standards governing the level of risk (including liquidity risk), bank transactions, identification and analysis of the profitability of the bank's activities and effectiveness of capital management (own funds) of the bank, identifying indicators of financial stability, liquidity and solvency of the bank, identifying and analyzing the performance of individual divisions of the bank and certain types of operations, analysis of factors affecting performance. Category: Fundamentals of Financial Management Bank