Tsygankova N.A., Moiseieva F.A.
Donetsk national university of
economics and trade
Named after Mykhaylo
Tugan-Baranovsky
PLANNING AS SPESIAL CATEGORY IN BANK MANAGEMENT
The
development of the Ukrainian banking sector is characterized by a certain
market saturation of the main types of banking services and the limited areas
of profitable allocation of resources.
The
domestic financial market is believed to be the most speculative beyond it’s financial
and credit institutions.
The
process of concentration of the banking capital is expressed in the activation of
the processes of absorption and merging.
The development
of a strategy and its consistent implementation are necessary stages of successful
functioning of the banks.
As you
know, strategic planning is defined as a management process to identify the key
ideas of the bank activity. It’s to develop scenarios and plans which help to base
the mission of the bank and achieve the goals.
Strategic
planning touches the activity of all structural bank subdivisions.
The
basis for the strategic planning is a concept of the bank. The strategic
planning must operate according to shared goals and priorities of a bank, and
development of the key trends in bank.
The conception
of bank development includes the following elements as a rule:
o
mission;
o
positioning in the financial markets;
o
principles of customer and credit policies;
o
management principles;
o
Image and corporate culture.
Strategic
planning is to identify the key objectives and strategies of the bank in a
particular market. This is the process of development the common concept, which
is the basis of making key management decisions. The strategic planning
discounts the desirable level of profitability, risk tolerance, methods of
competition, and the prospects for expansion. The bank management must answer
the following questions in the process of strategic: "Where is the bank?
Where it should be in the future? How to achieve the desired goal? ".
The strategic planning is an integral part of
the strategic management of the bank. The strategic management of commercial
bank is a set of correlated management processes and functions in time. They
implement the mission and strategic goals of the bank.
The strategy of development is realized for
the entire banking institution as a whole business unit. There are no strict
time limits for strategic plans according to economists’ point of view. The
strategy of the conceptual activity of the bank, and its development begins
with the definition of the strategic objectives. I fully agree with that the
priority of the strategic bank objectives is the growth of the market value of
the bank.
The
formation of the strategy does not provide clear fix time limits of its
implementation - it is assumed that the bank will work always. That’s why, the quantitative
indicators and their specific values are usually not
installed in the strategic planning.
The strategic
plans are aimed at long-term perspective and are based on an analysis of
current trends of the economy. They also contain elements of prediction and
description of the basic principles of making decision. The strategic plan does
not detail the terms and details of exact dates of execution.
The strategic
planning provides a choice of activity areas of the bank, which will ensure the
growth of its competitiveness. That is why, the strategic planning is a
function of the management of the bank.
The modern
approach to the strategic planning recognizes the interdependence of planning
and other functions and activities of the bank. I agree that it shows the need
to incorporate this interdependence of planning systems in the banks.
Schematically,
the strategic planning system can be represented as follows:
Scheme 1 – The elements of strategic planning
In this
way, strategic planning - is a link, which can pull the entire chain of banking
system. Planning is important every ware including medium and small banks. The
main thing is to use it consistently, according to the both external
circumstances and internal environment of its features.
But we
must remember that the banks do not exist outside of the economy. It’s
necessary to add that, the economy makes more and more serious requirement to
the banks.
The
future of any commercial bank directly and indirectly depends on how adequately
it will make the decisions according to its needs in market economy. The
strategic planning passed into the obligatory constituent of effective bank
management in the conditions of dynamically developed markets. The permanent
improvement of the offered financial instruments is provide the success in condition
of intensifying competition in bank sector.