IMPORTANCE OF BANKING MANAGEMENT

Abstract

Current economic situation imposes its own rules and conditions and the banks have to implement them in order to survive at all.  The banks product is intended to clients and to satisfaction of their needs. This article deals about the importance of banking management in planning, actions and in achievement of the objectives of banks, and in their survival in the financial markets. At the beginning of this century, there appeared changes in the technological and economic development of the banking system that affect profit, operation and organization of banks. In today's business environment the main problem is the successful management of banks. In conditions of rapid changes in the business environment, bank's ability to achieve higher profits is increasingly coming to the fore. The phrase banking management refers to a person or persons conducting management of material, energy and informational resources through people and through knowledge. Management is not simply born, it’s a process in making. It has to master contemporary methods in conducting banking business. The main task of management is to ensure the use of banking resources and to transform the managerial function. In this conditions only management which is based on quality and ability can help the bank to reach its goals. Management needs universal, specific knowledge and abilities to be successful. Management in the banking sector can be a team, or an individual, who are responsible for the preparation, adoption, implementation, and decision analysis. In addition to the quality and professional skills bank management must possess also the knowledge, and leadership abilities and skills. Efficient and effective managing of banks business requires implementation of a numerous different activities. This is the reason that special attention is paid to the operations that management should carry out. The aim of banking management is creating of both, bank's vision and the best solutions for doing business. Through processes of planning, organizing, and the implementation, banking management should shape business policy. To achieve this aim, it is necessary to collect all the information about previous doing business.