MECHANISMS OF COMMERCIAL BANK FINANCIAL MANAGEMENT
Abstract. The article examines the main financial management mechanisms of a commercial bank, as well as the prospect of creating a modern financial mechanism. The article analyzes the approach to the definition of the term "finances" and the focus of management on the placement of financi...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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V. N. Karazin Kharkiv National University
2023-06-01
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| Series: | Фінансово-кредитні системи: перспективи розвитку. |
| Subjects: | |
| Online Access: | https://periodicals.karazin.ua/fcs/article/view/21626 |
| _version_ | 1797645732486840320 |
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| author | Tetyana Novikova Zaneta Simanaviciene Arturas Simanaviciene Tetyana Tuinova |
| author_facet | Tetyana Novikova Zaneta Simanaviciene Arturas Simanaviciene Tetyana Tuinova |
| author_sort | Tetyana Novikova |
| collection | DOAJ |
| description | Abstract. The article examines the main financial management mechanisms of a commercial bank, as well as the prospect of creating a modern financial mechanism. The article analyzes the approach to the definition of the term "finances" and the focus of management on the placement of financial resources to obtain income. Emphasis is placed on the importance of productive financial relations between the bank and clients through financial management. The role of elements of planning, operational management and controlling in the creation of modern financial management methods is also considered. The stability of the banking sector largely determines the stability of the economy in general and its successful development. Therefore, the primary task of state bodies at the macro level and the management of credit organizations at the micro level should be to ensure such stability through the implementation of a rational monetary policy; assessment and monitoring of the state of the real and financial sectors of the economy; the fall of all types of risks and the acquisition of income, which multiplied aggregate costs. All this will contribute to the modernization and improvement of the quality of banking services provided to individuals and legal entities. An unreasonable and hasty policy in the field of banking business will not only lead to a decline in the financial stability of credit organizations, but will affect the economy as a whole. The article analyzes the financial management of foreign banking organizations, as a result of which the author came to the conclusion that the most important indicators in the development of a bank's financial strategy are the value of a financial organization, the level of bank capital, a certain number of active innovative projects, an increase in the range of products and services provided by banks, an increase management of external and internal risks, as well as development of an effective investment policy. As a result of the study, the relationship between effective financial management and a high level of liquidity management of the bank and the adequacy of its capital was revealed. The theoretical recommendations made by the author can be used by bank managers during the development of tactical measures aimed at increasing the financial stability of the credit organization, as well as during the clarification of the bank's development strategy in the phases of economic growth and decline in the interests of owners and other economic entities that enter into financial relations with banks. |
| first_indexed | 2024-03-11T14:51:07Z |
| format | Article |
| id | doaj.art-c217f0cd4ce24e87a984a157bdeadde7 |
| institution | Directory Open Access Journal |
| issn | 2786-4995 2786-5002 |
| language | English |
| last_indexed | 2024-03-11T14:51:07Z |
| publishDate | 2023-06-01 |
| publisher | V. N. Karazin Kharkiv National University |
| record_format | Article |
| series | Фінансово-кредитні системи: перспективи розвитку. |
| spelling | doaj.art-c217f0cd4ce24e87a984a157bdeadde72023-10-30T09:28:01ZengV. N. Karazin Kharkiv National UniversityФінансово-кредитні системи: перспективи розвитку.2786-49952786-50022023-06-012971710.26565/2786-4995-2023-2-0121626MECHANISMS OF COMMERCIAL BANK FINANCIAL MANAGEMENTTetyana Novikova0Zaneta Simanaviciene1Arturas Simanaviciene2Tetyana Tuinova3V.N. Karazin Kharkiv National UniversityMykolas Romeris UniversityLithuanian Sports UniversityV.N. Karazin Kharkiv National University Abstract. The article examines the main financial management mechanisms of a commercial bank, as well as the prospect of creating a modern financial mechanism. The article analyzes the approach to the definition of the term "finances" and the focus of management on the placement of financial resources to obtain income. Emphasis is placed on the importance of productive financial relations between the bank and clients through financial management. The role of elements of planning, operational management and controlling in the creation of modern financial management methods is also considered. The stability of the banking sector largely determines the stability of the economy in general and its successful development. Therefore, the primary task of state bodies at the macro level and the management of credit organizations at the micro level should be to ensure such stability through the implementation of a rational monetary policy; assessment and monitoring of the state of the real and financial sectors of the economy; the fall of all types of risks and the acquisition of income, which multiplied aggregate costs. All this will contribute to the modernization and improvement of the quality of banking services provided to individuals and legal entities. An unreasonable and hasty policy in the field of banking business will not only lead to a decline in the financial stability of credit organizations, but will affect the economy as a whole. The article analyzes the financial management of foreign banking organizations, as a result of which the author came to the conclusion that the most important indicators in the development of a bank's financial strategy are the value of a financial organization, the level of bank capital, a certain number of active innovative projects, an increase in the range of products and services provided by banks, an increase management of external and internal risks, as well as development of an effective investment policy. As a result of the study, the relationship between effective financial management and a high level of liquidity management of the bank and the adequacy of its capital was revealed. The theoretical recommendations made by the author can be used by bank managers during the development of tactical measures aimed at increasing the financial stability of the credit organization, as well as during the clarification of the bank's development strategy in the phases of economic growth and decline in the interests of owners and other economic entities that enter into financial relations with banks.https://periodicals.karazin.ua/fcs/article/view/21626financial managementfinancial stabilityfinancial strategybank capitalrisk management |
| spellingShingle | Tetyana Novikova Zaneta Simanaviciene Arturas Simanaviciene Tetyana Tuinova MECHANISMS OF COMMERCIAL BANK FINANCIAL MANAGEMENT Фінансово-кредитні системи: перспективи розвитку. financial management financial stability financial strategy bank capital risk management |
| title | MECHANISMS OF COMMERCIAL BANK FINANCIAL MANAGEMENT |
| title_full | MECHANISMS OF COMMERCIAL BANK FINANCIAL MANAGEMENT |
| title_fullStr | MECHANISMS OF COMMERCIAL BANK FINANCIAL MANAGEMENT |
| title_full_unstemmed | MECHANISMS OF COMMERCIAL BANK FINANCIAL MANAGEMENT |
| title_short | MECHANISMS OF COMMERCIAL BANK FINANCIAL MANAGEMENT |
| title_sort | mechanisms of commercial bank financial management |
| topic | financial management financial stability financial strategy bank capital risk management |
| url | https://periodicals.karazin.ua/fcs/article/view/21626 |
| work_keys_str_mv | AT tetyananovikova mechanismsofcommercialbankfinancialmanagement AT zanetasimanaviciene mechanismsofcommercialbankfinancialmanagement AT arturassimanaviciene mechanismsofcommercialbankfinancialmanagement AT tetyanatuinova mechanismsofcommercialbankfinancialmanagement |