The Definition of Bank Management

means the process of governing the bank’s statutory activities. Bank management
can be defined by the particular object of management – financial activities
connected with banking concerns. Bank management also concerns the application
of management functions in the banking sector.

Objectives of Bank Management

The main objective of bank management is to coordinate elements of banking
activity with a view to generating profits. While doing so, bank management
ensures an optimal and organic system of interaction those elements.

Characteristics of Bank Management

The characteristics of bank management are determined by the following
factors:
 Management expertise in planning, management functions, strategic
analyses and policy development
 Liquidity management
 Planning quality
 Risk management
 Interest rate, currency and credit risk management
 Management of human resources
 Management of control systems
 Auditing, and internal auditing
 Management of profitability and risk liquidity
 Management of information technology system: accounting, strategic
planning, current analysis and integrated workflow automation

Bank Manager
 person tasked with managing the bank’s financial and other banking
activities.
 discusses the trends affecting the whole financial services and related
industries.
 He/she outlines how the behavior of banks changed.
 A Bank Manager assesses the effects of change for bank risk management.
 A Bank Manager recognizes the need to coordinate risk management
procedures to an ever-changing international financial system.
 He/she assesses the relationship between capital adequacy and bank
performance.
 A Bank Manager discusses how interest-rate risk can be averted using
hedging activities through the use of financial derivatives.
 A Bank Manager analyzes how costs and funding mix are vital to bank
management when giving loan and making investment decisions.

Bottom Line – to maximize profits, you need concerted efforts coordinating all the
banking concerns. And, effective bank management can help you derive maximum
profits with minimum risks.
 1.Changing Regulation of Banks

At the end of the 3rd decade of the 20th century, thousands of banks around the
world failed due to the economic recession called Great Depression.

Due to the bank failure, millions of depositors suffered from a great problem, as
they didn’t get back their deposited money. From this time, to protect the interest
of depositors, the deposit insurance scheme was made mandatory for banks.

me of the techniques followed by the bank regulatory authorities to control over the
activities of commercial banks are;

 Direction for the right price of bank services.

 Introduction of deposit insurance.

 Direction for adequate liquidity.

 Direction for capital adequacy.

 Direction for approval and non-approval of bank loan operation.

 Recruitment of directors and direction regarding recruitment and directing

their duties and responsibilities.
 Loan supervision, review, and examination.

 Direction for adequacy reserve etc.

2.Increasing Competition due to Changing Technological Development

A number of served client and quality dimensions of services are the basis of
competition. The bank, which provides better service with high quality, is capable of
being successful in competition.

3.Changing International Relationship

In the international banking business, the bank faces an extensive amount of

legislation in the event of a new problem. International relations, global or bilateral,
create more competition in the banking business.

Other factors, such as changes in international trade and commerce, laws of found
transfer, change in social and cultural factors establish new operational
management system which challenges the banking business.

CASE STUDY

Corporate policy and regulatory compliance auditing at European bank

Problem
The large European financial institution used to adopt the server monitoring system
to comply with regulations and prevent corporate policy violations. Since the
company grew, the server infrastructure became more complicated, and the
amount of insider threats rapidly increased, it turned to be rather hard to audit
corporate policy and prevent all possible violations. Besides, compliance demands
and rules in the banking industry continued to increase due to the government
policy implemented. Even nowadays, the risk and compliance field is one of the
hottest jobs in banking. Therefore, the bank's management executive team decided
to implement new security monitoring system. The main requirements were:

 universal coverage;  easy-to-use monitoring;  cost-effective solution

Solution
Several modern systems for corporate security audit were examined, and Ekran
System was in that list. In order to evaluate the product and in consequence make
the right choice, a pilot Ekran System project was announced. It included 15
terminal server licenses. Bank’s IT department team easily deployed our solution
and started to monitor test servers by recording all terminal and remote user
sessions. All user actions were logged, including privileged account activity. After a
half-year of product evaluating, the bank performed deep analytics of the obtained
monitoring statistics. The result was that Ekran System received a positive review
and was selected as the great solution for corporate policy and regulatory
compliance auditing.
The reason for choosing Ekran System was combination of software-based easy-to-
use and deploy system with proven security monitoring solution, which nothing can
be hide from. It resulted in deploying Ekran System server agents at all bank’s
locations to monitor terminal and remote sessions on each server and log all user
actions, regardless of their privileges. In order to provide more comfortable support
of the bank’s server architecture, Ekran System team still implements new features
according to their requests. With our solution, the bank has complied with all its
regulations and achieved total control on server infrastructure.

Case Study on Bank Management System:

Bank management system
 is the complicated software system which is aimed at the professional
management of the client’s activities in the bank and high-quality and quick
access to the client’s account. With the rapid development of the banking
system, the necessity of the high-quality bank management system has become
extremely relevant. Today, there is hardly a person in the world who is not
involved into the banking services and naturally, everyone has an account in a
bank and saves money there. It is obvious that everyone wants to have the
constant access to his finance but it is impossible without the high-quality
management system which provides clients with such opportunities 24/7.
Naturally, the financial institutions work only in the definite hours of the day, but
if the client requires the access to his finance at night or does not have the
opportunity to come to the bank, his wish will be failed. In order to enable clients
operate their accounts well, the bank management system was created.

Today, due to the development of the online banking the opportunities of both
the financial institutions and clients have become extremely wide. With its help
clients can operate their finance faster and fulfill more operations at a moment’s
notice making the whole banking system more rapid and dynamic. The system
stores the information about clients, their withdrawals and deposits and helps
them manage and monitor their finance effectively increasing the trust to the
banking services.

Bank management systems are extremely popular and effective nowadays,

because they improve the quality of the banking services and help clients
operate their finance better. When a student is asked to analyze the definite
case on bank management system, he will have to get to know about the system
itself in order to be able to analyze this question deeper later. A successful bank
management system case study should explain the purpose of the research of
the problem, describe the problem itself and touch upon its core aspects.
Furthermore, one should collect data on the problem to learn about its cause and
effect in order to be able to brainstorm the effective solutions to the problem and
demonstrate his professional and critical thinking skills.

In order to cope with the process of case study writing the student should take
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