Organizational structure of the bank

The most important element of the banking system is the organizational structure of the bank. It is a complex of various services and departments, each of which has its own direction, task and purpose of functioning, but at the same time closely interacts with all the others. The success of the bank's organizational structure and the ability to conclude profitable transactions depend on how well the organizational structure of the bank is built and smoothly working.

The leader faces a difficult task of forming the departments and services that are necessary in this economic situation. In addition, they must ensure the effective operation of units, and for this you need a clear control and discipline.

In general, the structure can be conditionally divided into two huge blocks: internal and external. The first includes all kinds of departments, services and so on. And the external structure group includes a ramified network of various branches of subsidiaries, bureaus and similar organizations.

The management structure of the bank assumes the existence of departments that can resolve the emerging issues and problems in the shortest possible time, react to the changing market conditions in a timely manner, and monitor the clear performance of their tasks by the subordinates. In addition, the management system should evaluate the main indicators that characterize the efficiency of the entire credit institution and, on the basis of the analysis carried out, implement measures to improve current activities.

Most commercial banks are joint-stock companies. Therefore, the highest management body of such an institution is usually considered to be the board of directors. It is collected, as a rule, once a year to solve the main issues and problems, or in urgent order in the event of unforeseen situations.

The board acts as the executive department performing the executive function. The chairman of the bank appoints his deputies and organizes the most important departments. He is directly interested in the success of the credit institution, as he is personally responsible to the shareholders' meeting.

As you know, 80% of all banking operations are borrowed, therefore the organizational structure of the bank can not exist without a well-formed credit department. This department carries out extensive work to establish specific requirements for potential borrowers, classify loans, diversify interest rates for various types of loans, reduce the risk of non-return of funds, and much more.

The organizational structure of the bank is established by each joint-stock company at its own discretion and fixed in its accounting policy, but it necessarily includes a department for dealing with legal entities, individuals, a depository department, an accounting department, a cash management department, a security and economic support service.

Large commercial banks form their own audit department, which allows to monitor the correctness of reporting and analyze performance indicators, which significantly increases the prestige of the bank in the international arena.

As the most striking example in our country can be identified Savings Bank of Russia. It is also a joint-stock company, but it is organized by the state itself, therefore it is considered one of the largest credit institutions. The structure of Sberbank of Russia is formed in such a way that the main shareholder is the National Bank of the country, which owns more than 50% of the authorized capital stock. The rest of it was distributed among legal entities and even individuals. This is the only bank in the country that is endowed with guarantees of reliability from the state.