Bank’s financial management technologies forming at strategic and operational levels

Economic Annals-ХХI: Volume 154, Issue 9-10, Pages: 73-77

Citation information:
Chmutova, I. (2015). Bank’s financial management technologies forming at strategic and operational levels. Economic Annals-XXI, 9-10, 73-77. https://ea21journal.world/index.php/ea-v154-17/

Iryna Chmutova
PhD (Economics),
Associate Professor,
Simon Kuznets Kharkіv National University of Economics
9_a Lenin Ave., Kharkiv, 61166, Ukraine
chmutova_i@ukr.net

Bank’s financial management technologies forming at strategic and operational levels

Abstract. The purpose of the paper is to improve the process of formation of bank financial management technologies at the strategic and operational levels considering the maturity of its financial management system and the efficiency of production processes. The following methods are applied in the study: the correlation and multivariate factor analyses to form a system of indicators for the evaluation of the bank’s production processes; taxonomy to obtain a complex estimate of the bank’s production processes; scaling (using the three-sigma rule) to differentiate the levels of integral quantitative indicators; fuzzy logic to distinguish between the levels of integral qualitative indicators. Results. The paper suggests that operational level technologies of bank financial management should be formed according to the efficiency of the bank’s production processes defined by integrated indicators of the basic banking operations ensuring the flow of financial resources: credit operations, borrowing operations, currency operations, securities operations, payment and cash services. Strategic level technologies, such as the Balanced Scorecard, financial controlling, budgeting and benchmarking, are selected according to the evaluation of the bank’s financial management maturity, which incorporates the efficiency of its production processes, the readiness of the bank’s financial managers to use integrated technologies, the degree of formalization and information support of financial management. Conclusions. All of the above will make it possible to choose and apply the appropriate technologies that will most effectively ensure the flow of financial resources and achievement of the planned financial results due to their consistency with the current level of development of the bank and maturity of its financial management system.

Keywords: Bank; Financial Management Technology; Financial Management System Maturity; Bank’s Production Processes; Banking Transactions

JEL Classіfіcatіon: G21; С13; L20

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Received 12.05.2015