17.The organisation chart of a bank

Whatever size and category a bank requires the optimum form to service the needs of its clients effectively. Commercial banks have formed the organisation chart that guarantees the best performance, meets the business pattern and ensures continued prosperity of banks.

A great number of banks are small and medium size banks. They have close links with local businesses and reflect changes of the regional economic environment. Such banks attract consumer-oriented deposits, act as agents for their customers, make small business loans, pay cheques and perform other related services to the public. When a bank begins to grow it offers new facilities necessary to meet new challenges. With them come new sectors and departments shaping the organisation form. Large financial institutions concentrate upon servicing corporate customers. Depending on the size and type of business each bank has a different organisation chart. However, lending division, accounting and treasury, finance operation division, including FX market operations and market money operations, investment division, marketing division should be part of every commercial bank. Each division is broken down into departments, sections and groups or teams.

The organisation chart of a bank reminds of a pyramid with different subordination. The top of the pyramid is made by the chief administrative officers including the Chairman of the Board, the President who runs the bank from day to day and Senior Vice President who are in charge of the major divisions.

18. Priority number one for fma. Different points of view

There were two different point of this matter.

The point of view of Roscoe Heyward:

The profitability of FMA is their priority number one. The profit is their principal objective. It’s wrong that social issues influence too many decisions in banking. It lessens their bank’s strength, retards growth & reduces profits.

If the bank shows decreased earnings per share, confidence in banking decreased. Depositors & shareholders withdraw their funds or investment. Bank’s stocks tumble & it could lead to the public crisis.

How they achieve maximum profit?

• not to place more than a minimal portion of bank funds in housing mortgages, which are notorious for their low return of profit;

• refuse of dealing with minority business loans;

• not to concern unduly with matters of environment.

They should lend money only on the basis of the best return.

The point of view of Alex Vandervoot:

The corporate social responsibility is their priority number one. Improving the quality of life, stopping the pollution of the environment, preservation the resources left require new standards on the part of industry & business.

They will never achieve success by ignoring change.

They should accept more responsibility:

• to share in improving the life of the city & state, for example by financing of low-rental housing from saving deposits & gain profitability by volume. So they attain a threefold objective: profit, fiscal stability & a major social contribution.

• not to ignore consumer business including small savings. It will become the major money force, although industrial loans & commercial business will remain pillars of the activity.

• To open 9 new branches in suburban areas through the state & reorganize Fame’s structure to improve their efficiency.