The role of management in the bank activity

Oleksandr Syrchyn
PhD in Economics, Associate Professor, Department of Banking, Odessa National Economic University, Ukraine, e-mail: aleks_syrchin@ukr.net, ORCID ID: https://orcid.org/0000-0002-7206-4439

Cite this article:

Syrchyn, О. (2019). The role of management in the bank activity. Ed.: M. Zvieriakov (ed.-in-ch.) and others [Rol upravlinnia v diialnosti banku; za red.: М. I. Zvieriakova (gol. red.) ta in.], Socio-economic research bulletin; Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 2-3 (70-71), pp. 170-177.

Abstract

The article proposes a scientific and practical approach to the role of management in the modern commercial bank’s activity. The information base of the article was a research results of modern scientists and NBU statistical data. It is shown that the strategic goal of a separate commercial bank activity is to increase its share in the banking services market. It is argued that management is an aggregate of processes of targeted, systematic and continuous influence of a management subject (bank management) on its object (bank team) with a help of certain functions that form a closed and repeating cycle. It is formulated that a management decision is a type of work, where individual or collective leadership (a management subject) provides a creative volitional influence (directive, order) on a bank (management object) with the aim to achieve the planned results of activity. All management decisions are classified into strategic, tactical and operational, depending on the coverage volume of control object and exposure time to the bank: strategic decisions have a long-term influence (5-20 years) on the bank’s activity and cover the main directions of its work in an aggregated form; tactical decisions have a medium-term influence (3-5 years) on the bank’s activity and cover all directions of its work in a detailed form; operational decisions have a short-term effect (up to 1 year) on the bank’s activity and generate a huge number of parameters or goals for achievement. An external (population, GDP volume, investments volume, base and money supply, inflation level) and internal (goals, structure, tasks, technology and people) environment factors that significantly influence on the individual bank’s activity management are generalized. The research results can be used in the practical activity of Ukrainian banks.

Keywords

country’s banking system; commercial bank; bank’s activity management; subject and object of bank management; bank management functions; classification of managerial decisions.

JEL classification: G210; DOI: https://doi.org/10.33987/vsed.2-3(70-71).2019.170-177

UD classification: 336.7

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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