BANK ORGANIZATION

Banks are among the most important financial institutions. The way in which a bank is organized and operates is determined by its objectives. The first and most important function of a central bank is to accept responsibility for advising the government on the making of the country's financial policy, and then to see that it is carried out. The aim of commercial banks is to earn profit. Over the years banks have developed organizational forms, or structures, designed to perform these various roles and to supply the services their customers demand.

A commercial bank which provides the same range of services year after year is less likely to be successful. Successful competing in the constantly changing global business environment requires market-driven strategies that are responsive to customers' needs and wants. Executives who do not recognize the changes occurring in the vast array of markets for products and services will not be able to cope with the unprecedented competitive pressure in the market place.

The service operations of a small bank are usually monitored by a cashier and auditor working in the accounting division and vice-presidents heading up the bank's loan, fundraising market and trust departments (if the bank offers trust services). The officers report to the senior executives of the firm, consisting of the board chairman, the president (who usually runs the bank from day to day), and senior vice-presidents, who are responsible for a long-range planning and for assisting heads of the various departments in solving their most pressing problems. Senior management, in turn, reports periodically (at least once each month) to the members of the board of directors -the committee selected by the shareholders to set a policy and oversee the bank's performance.

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<== попередня сторінка	\|	наступна сторінка ==>
Investing in a Limited Company	\|	THE ROLE OF FINANCE

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