Overall bank management

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The bank management includes banking , the objectives , strategies and target strategy control standards to control the whole bank . The strategies start either in the liquidity-financial area (e.g. financial planning and liquidity planning ) or in the technical-organizational area (e.g. dimensioning and structuring of personnel capacities).

In the liquidity-financial area z. B. the procurement (e.g. savings ) and the sale of liquidity-related financial services controlled. To this end, the sales and procurement relationships with the customers must be designed accordingly. One possible sales strategy is to use appropriate products and conditions to attract the attention and loyalty of customers and to monitor and control the bank's risks in a bank-specific form of risk management . The credit management checks the creditworthiness of the prospective debtors and monitors the credit risks .

To control a bank offer u. a. the target values ​​RORAC, RAROC and Value at Risk .

RORAC relates the expected return flows to a risk capital that may fluctuate on a daily basis . Margin control using RORAC can lead to investments with different terms not being selected in the interests of maximizing market value.

There are some aspects that cannot be viewed separately in imperfect markets. The individual business, the risk , the liquidity , the acceptance of the employees, which made the profitability of the service possible in the first place, and the equity capital requirement belong together. The question arises as to how much risk a bank should or can assume. A distinction is made here between risk avoidance and the risk compensation hypothesis: The risk normalization hypothesis states that risks are to be assumed against payment of premiums up to a certain level. The capital structure is determined by the proportions of debt and equity in total capital.

The owners' goals are defined by the owners themselves, so a distinction can be made between fundamental goals and instrumental goals. Fundamental goals are considered goals for their own sake, while instrumental goals are assumed to have a positive effect on the fundamental goal. The goal of profit maximization seems too imprecise, since the time horizon remains indefinite. An important goal is market power, that is, to achieve a certain balance sheet total . A high return on equity stands for a high market share and the fulfillment of a public contract , e.g. B. the obligation to contract the savings banks.

The extent of risk aversion is determined by risk-averse banking behavior, the self-interest of managers, non-linear taxes, bankruptcy costs and the “deadweight costs” of external financing. Well-known risk measures are the variance , the Value at Risk ( ) -quantile of the expected loss, the equity, the RORAC , the shareholder value , the consideration of the individual business against the portfolio ( diversification ), the present value concept and the dual control model.

literature

  • Bernd Rolfes: Total Bank Control , Schäffer-Poeschel Verlag, 1999, ISBN 3-79101-146-4
  • Peter Bartetzky: Practice of Overall Bank Control , Schäffer-Poeschel Verlag, 2012, ISBN 978-3-7910-3154-5
  • Peter Bollmann, Oliver Hansen: Checking the overall bank management: Internal auditing needs external professionals , in: Betriebswirtschaftliche Blätter 12/2012 ( online as PDF )

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