News

At the beginning 70th of the ХХ century base definition by Chandler was modified by K. Andrewwho added item authentication of four constituents: market possibility of firm; general competence and resources of firm; own values and aspirations of firm; confirmed obligations to the society.

Strategy of financing as type of activity «includes determination of aims of the use of financial resources and capital, methods of financing, sentinel descriptions, levers and receptions of traffic control of financial resources and capital, determination of «strategic set» (how the structures of specific financial strategies are), and also financial planning and development of the special plans.

More information

Market transformations of the modern economy enable speaking about the necessity of high-quality and quantitative changes in approaches to forming not only short-term aims and plans of conduct of business (especially in the bank), but also about perfection of methods of the strategic planning, update of approaches of domestic banks to forming of financial strategy as fundamental principle.

Like methods which lean against the exceptional observance of the planned indexes and conservative approach to the financial management of bank, adequate answers are not given for the reality of the banks’ market, especially towards expectations of users and actions of competitors.

Above all things, it is necessary to define what a financial strategy as a concept is. On that score specialists-economists and leading theorists of strategic and financial management express different opinions; thus determinations mostly are mutually determined or complement the point of view of other researchers, although there are the exceptions.

Strategic plan for a manager

Choice of instruments of realization of strategic aims is thus used: with the help of dynamic rows of macroeconomic and financial indicators the prognosis of level of interest rates is made after the basic types of financial instruments; a next step is forming of a few scenarios of development of external factors and proper strategies of bank (pessimistic, middle and optimistic scenarios), that the "tree of scenarios" of development of bank will give us. As we see, this direction of forming of financial strategy uses including those factors of the external influencing, which were select in quality central for this research. Basement for the selected variant of general strategy and financial strategy as fundamental principles of acceptance of financial decisions is formed by all reference points of long- and medium-term prospect the proper business plan. Its components are market, clients, competitors; priority products (their competitive edges); financial goals (volumes, incomes); risk level (level of bad debts, backlogs); necessary material, technological and human resources; planned balance and report about gains and losses. Going out from primary financial purposes is also developed: budgets of tailings on the accounts; budgets of incomes and charges; budgets of capital investments; plan of increase of capital. Introduction of select financial strategy is executed on the basis of realization on the whole by formulation and raising of clear tasks to subsections and planning of their actions (planned volume of account balances; personal plan of bringing in of clients; program of contacts with clients and reports; plan of profitability of accounts and attitude toward actual indexes; report about profitability of all business; analyst report about a market).

Noble metal


	Web http://www.banks-strategy.com/