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Tsygankova N.A., Moiseieva F.A.

Donetsk national university of economics and trade

Named after Mykhaylo Tugan-Baranovsky

THE BANK DEVELOPMENT STRATEGY: GENERAL MAINTENANCE

A bank must begins with well thought out, high-quality, individual, flexible strategy of its development which will include its appearance, formation, functioning, survival.

The development of high-quality strategy and its successful realization is a central problem of becoming and steady development of every commercial bank.

The absence of the own strategy of the development or its formal presence demonstrate the absence of planning in bank at all. The management in bank must include the following logical links: analysis – planning - operative management – control.

Even the presence of high-quality strategy of the development itself does not guarantee the success. But at the same time the absence of the strategy is condemn a bank to a failure, especially in a medium and long-term prospect.

High-quality strategy of the development, if it is really used: promotes strict, intelligent co-ordination of bank efforts, provides the unity of general priorities of the bank and facilities of their achievement. The management of the bank diminish the risk of the acceptance incorrect or uncoordinated administrative decisions by using the strategy.

It is necessary to avoid rough failings concerning toward the problem of the strategy development, which were already revealed in practice of Ukrainian banks:

· Absence of the strategy at all, because of ignoring the necessity of its development;

· Fragmentary character of the declared strategy;

· Absence of internal co-ordination between the different component elements of the strategy;

· Adding in a single document, on equal rights the most various and logically different elements which are applying to be a kind of strategy of a bank.

The necessity of making the own high-quality strategy of the development the more important, than worse bank activity.

The strategy of a bank development must be taken into consideration with economy of the country and region. Otherwise a bank must have its own strategy however.

For every planned period a bank can purpose the only strategy. Few alternative are possible on the initial stage of the strategy forming, however, all of them must based on the same key ideas.

The top management of a bank must initiate the development more precise definition of the bank development.

Such initiative must enclose:

1) formulation of key ideas of the strategy or its update;

2) work organization of the strategy development or its update.

Compiling of the strategy of a bank development occupies a certain place in the general process of its management. It’s begins with the stage of analysis, being based on its results, and immediately became a successor of planning.

Development of the strategy of a bank development is believed to be appropriative to all objects of bank management, which characterize the bank activity, its component parts, all its internal and external relations.

Every bank, taking into account the own estimation of the situation, especially inside a bank, the strong and weak sides, interests and possibilities, can extract from all the variety of objects of bank management, in regard to which development of the strategy presently mean to be more actual. It is necessary to mean financial and other costs, connected with future transformations.

The strategies of the development of commercial banks can be developed on different terms, but no less then on half-year, taking into account Ukrainian realities.

Time period, on which bank formulates its strategy, depends on accessible to analysts and leaders of horizon the grounded prognostication.

It’s no doubt that the project of the strategy of a bank development must be prepared based on the key ideas, formulated by management of a bank:

· by the group of independent experts invited outside (in case of absence of own specialists of necessary type and level);

· by the specialists of bank jointly with the experts invited outside;

· by the specialists of bank in composition of the special structural subdivision of bank.

The strategy of bank development must be designed as a single document and ratified in accordance with the special regulation.

Thus there must be the special subdivision, on the basis of strategic analysis. This team will analyze the factors which will substantially affect on a bank activity in the nearest future. The preparation of projects, documents, conceptions, aims and plans of bank development will the main activity of it. Such subdivision must operate on the basis of the special package of the internal normative documents.

The developed system of the bank planning must provide development and documentary fixing: the conception (missions) of a bank, really added to prognostication; systems of high-quality and major quantitative aims of activity or intentions of bank.

I consider that it is necessary to mean the most often errors in interpretation of the bank planning: limitation of planning tasks only drafting of plans or determination of methods, ways of achievement of the set aims of activity; limitation of planning of a bank activity by financial planning; the orientation of planning results exceptional to the top management.