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Essence, necessity and functions of anti-recessionary management by banks of commerce

In the conditions of activity of the Russian banks of commerce considered above stability and solvency depend first of all on quality and specificity of management, ability of bank quickly and adequately to react to occurrence of separate symptoms and crisis factors.

Specificity of activity allows to carry banks to type of the enterprise firms requiring the constant control over a degree of risk and presence of the program of anti-recessionary development.

anti-recessionary development is an operated process of prevention and overcoming of the crises, answering to the purposes of the organisation and corresponding to objective tendencies of its development. Management of such difficult organisation as bank in a certain measure should be always anti-recessionary.

Specificity of activity of bank and high probability of development of crisis in a bank of commerce dictates necessity of the special approach to the management, providing a prediction, prevention of crisis situations and possibility of an exit from crisis with the least losses. Such type of management recognises anti-recessionary management.

necessity of anti-recessionary bank management is connected with specificity of activity of bank as public institute. At bankruptcy, a condition of insolvency of bank interests of wide social classes are infringed, the payment facilities are broken, the patrimonial functions of bank connected with accumulation and placing of money resources, are not carried out by issue of credit tools of the reference, intermediary. Thus, the public and social importance of bank as institute, demands antikrizisnnogo the approach from operating and regulating bodies. Necessity of an anti-recessionary orientation of intrabank management is dictated also private
by interests of owners and the managers of bank interested in preservation of bank business and profitable, steady work of bank.

the majority of the phenomena occurring in economic sphere can be considered at various levels. Naturally, as anti-recessionary management is necessary for considering also depending on scale of the phenomena. Quite often problematics of anti-recessionary management reduce to enterprise or organisation level, and from all variety of the crisis phenomena stop on financial circumstances and liquidity problems.takoj the approach, despite its importance and integrity, suffers odnostoronnostju. For the analysis of system of anti-recessionary management it is necessary to allocate two levels: federal either state; organizational or individual:

First, influence on the enterprise-debtor at macrolevel with use of organizational - economic measures and normativnopravovyh ­ tools from the state has received definition of anti-recessionary regulation. The purpose of anti-recessionary regulation in a banking system is protection against system crises, prevention of bankruptcies and carrying out of liquidation in case of an inefficiency of the further functioning separate bank the organisations that Savinskoj N.A., Paramonovoj T.V., Tarasovym N.P. [162,138,175] is fairly underlined.

Secondly, application of anti-recessionary procedures at microlevel with reference to the concrete enterprise has received definition of anti-recessionary management in S.G.Beljaeva, V.I.Koshkina's works [176, ń.36], Korotkova E.M. [10, with 128].

Possibility of anti-recessionary management is defined by knowledge of cyclic character of development of the social and economic systems which special case is also the bank as system.

The bank as the open, self-regulated system is capable to adaptation, changes under
management influence. The essence of anti-recessionary management is expressed in following positions:

crises can be expected, expected and caused, in a certain measure it is possible to accelerate and remove;

to crises it is possible and it is necessary to prepare;

management in the conditions of crisis demands the special approaches, special knowledge and experience;

crisis processes can be to a certain limit operated and supervised;

management of processes of an exit from crisis is capable to minimise consequences.

anti-recessionary management of a bank of commerce is considered in narrow sense as the management directed on a conclusion of bank from crisis and (or) liquidation of the organisation. To the given point of view adhere Tarasov N.P, Gradov A.P., Cousins B.I. [175, 164].

According to V.V. Ivanov, anti-recessionary management includes not only management of crisis, but also bank management for the purpose of prevention of crisis and timely revealing of the reasons of occurrence of crisis situations [11, 70].

Anti-recessionary management is the special type of management possessing as general for management lines, and specific characteristics. Anti-recessionary management has an influence subject - problems and factors (assumed and real) crisis, t e. All displays of an unlimited cumulative aggravation of contradictions.

for finding-out of borders of a category «anti-recessionary management of banks of commerce» is necessary to correlate it with categories «bank management» and «risk - management».

In our opinion, anti-recessionary bank management should become a component of bank management, identically problem
to the management (crisis-management) entered as concept and as direction Hovardom CHejzom in system of the theory of management.

for finding-out of a parity of concepts «anti-recessionary bank management» and «bank management» we will consider evolution of categories, levels of application of management, subjects and objects of administrative influences, management functions.

if to consider anti-recessionary bank management as a category it should pass all stages of development of a category: occurrence, development, formation, a maturity, disclosing of potentialities, decline or transformation. The considered category has passed the occurrence and birth periods, connected first of all with researches of crises and recurrence of business activity of D.Gamiltona, D.Kejnsa, M.Fridmena, A.Shvarts, X.×ĺéçŕ. The first attempts of introduction crisis - management concern large world crises of financial and bank communities in 30, and then in 80th years of 20 centuries.

in Russia favorable conditions for development and category formation «anti-recessionary bank management» are created by a train of system crises.

the category receives a new life as a direction of the general management and develops in the industrial environment, is widely applied in management practice by the problem enterprises. And then, also as in due time bank management has gemmated in the form of an independent direction of management, and anti-recessionary management separates from industrial anti-recessionary management and gets the specificity for banks.

feature of modern anti-recessionary management in bank is applied character, transferring of the legislation, methods and receptions of anti-recessionary operation of business on banks of commerce without specificity of a banking. Anti-recessionary bank management as the category has in present conditions all characteristics of the practical management realised in daily practice first of all
of insolvent banks, and also lines of the applied management characterised by attempts of a formulation of methodical approaches on perfection of practice of management. Thus, it is possible to ascertain, that there is no academic level in application of concept which should be formed on the basis of the general theory of management.

disclosing of potential of a category of anti-recessionary bank management will occur at formation of the favorable environment. It is necessary to consider as such environment environment in which there will be a requirement for anti-recessionary management at macrolevel and microlevel. At a present stage there is a formation of environment and accordingly category formation «anti-recessionary bank management».

Stages of formation of a category «bank management» are connected with stages of development of the theory of management and evolutionary transformations in economy. As consider V.Pjatenko and 3. The pine forest, bank management has passed depozitno-loan, investment, marketing, ­ sotsialnoorientirovannyj stages [30, with. 16].

As first two stages are defined depending on concrete functions and management concentrates on internal activity according to O.N.Litun, it is expedient to unite stages in functional management [92, with. 17]. In functional management all basic administrative influences are directed on resources and their distribution, and also to reduction of costs. Such absence of orientation to an environment cannot produce administrative decisions concerning occurrence of risks, krizisnosti separate bank. Transition to marketing management occurs at occurrence of necessity of an exit for frameworks of own system when internal influences do not lead to effective results. In the end of 20 centuries there is a transition by the postindustrial epoch characterised by a high competition, higher level of the technical progress, new principles of the organisation of manufacture and management, together with
dependence of objects of management on uncertainty, a randomness of an environment, dispersal of the property, variability of behaviour of consumers of bank products. This stage of bank management is formed as the socially-focused management. In our opinion, at this stage there is an anti-recessionary management of banks as special type of bank management and as requirement of a society for imposing of frameworks of responsibility of management for spent

activity.

Bank management - wider concept also covers «a scientific control system of a banking and the personnel occupied in a banking sector, defines purposes in activity of bank and creates the realisation mechanism, characterises quality of management i.e. Efficiency of the organisation and a management of bank in constantly changing conditions» [190]. Object of management is the bank of commerce and processes occurring in it. Administrative influences are directed on organizational, legal, technological structures of bank, the basic operations, realised bank products, the personnel and intrabank relations, information streams, safety, risks, profitableness and liquidity, and also all mutual relations with an environment.

Object of anti-recessionary management also is activity of a bank of commerce, administrative influence is directed on liquidity, profitableness, a soundness of bank in relation to internal and external factors krizisnosti which special case are separate risks of activity.

to management functions carry the organisation, planning, the analysis, coordination, the control. These functions are inherent also in anti-recessionary management. But characteristic properties of these functions is tselenapravlennnost - prevention of symptoms of crisis and decrease in their influence all directions of activity of bank, dynamism - development
crises in banks differs in the high speed and irreversible social and economic consequences, adaptability - made administrative decisions in the conditions of crisis are individual and have situational character. Modern Russian researchers of management of banks in the conditions of sanitation, crises name anti-recessionary management «the most advanced type of management», characterise it as more adaptive and socially - the focused control system of bank [190].

Definition of specific functions, objects of anti-recessionary management and risk management gives understanding of action of these categories at different levels.

in a basis the risk - management lays the work organisation by definition and decrease in degree of risks of activity. By A.N.Myrinjuka's definition, «risk - management» - a control system of risk and economic (first of all financial) the relations arising in the course of this management »[12, with. 108].

Objects of management in risk - management are separate risks of activity and economic relations between subjects in the course of realisation of risks. If to differentiate functions risk - management has narrower orientation. To risk management functions carry the work organisation on diagnostics, decrease, insurance of separate risks of activity.

functions of anti-recessionary management are kinds of activity which reflect a subject of management and define its result. Functions assume successful management on the threshold of, process and crisis consequences. It is possible to formulate the basic functions of anti-recessionary management: the strategic; the preventive; the analytical; the control; the communication; the information.

strategic function includes a number of actions of bank on working out of anti-recessionary strategy, tactics of carrying out brave bank

operations taking into account possibility of occurrence of crises. Preventive function consists in early prevention of bankruptcies and carrying out sanatsionnyh actions at occurrence of symptoms of crisis. Analytical and control functions of the anti-recessionary management are closely connected with it, allowing to find out possibility of occurrence of crisis situations at the financial analysis and separate indicators of activity, the internal control of divisions and the general management of bank. Communication and information functions find the expression in realisation of document circulation, public relation.

functions of anti-recessionary management have a current and strategic orientation and are defined by specificity of activity of bank at the different stages of crisis reflected on fig. 1.6.

a Fig. of 1.6 Directions of anti-recessionary management commercial

the Source: [10, with. 135]

On fig. 1.6 two basic directions of anti-recessionary management in bank - management of functioning and management

are reflected by development. The first direction is connected with financial and personnel management in bank-management of is active-passive operations, liquidity, profitableness as objects of financial management and shots as object of personnel management. Strategic management of bank development assumes prevention of crisis situations and possibility on an exit of their crisis at its various stages. On fig. 1.6 consideration of 3 stages of anti-recessionary management is offered: pre-crisis management, management in the conditions of crisis and management at a stage of end of crisis. Each of stages is connected with features of management - timely diagnostics crisis sosotjany, possible stabilisation of separate indicators of instability or minimisation of losses at an exit from crisis.

anti-recessionary management is a complex of following actions: the pre-crisis management, called to predict and prevent bankruptcy; realisation of monitoring (control) over bank risks; Complex diagnostics of an inconsistency and revealing of the reasons of occurrence of crisis situations; working out business - of plans, carrying out of marketing researches; a choice of optimum strategy of management and development (reorganisation, liquidation, licence preservation); working out of procedures on financial improvement and monitoring systems; carrying out of procedures of bankruptcy (supervision, an acting administration, competitive manufacture); practice of introduction of modern technologies in management.

thus, under anti-recessionary management of a bank of commerce it is understood a complex of the actions directed on the prevention of crisis, the organisation and work carrying out on a conclusion of bank from a crisis situation. Anti-recessionary management should become the important element of bank management in any, even prospering bank and to promote revealing of internal and external risk factors, nedopushcheniju transition of separate risks in complex crisis of bank.

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A source: DZJUBAN SVETLANA VIKTOROVNA. ANTI-CRISIS MANAGEMENT OF COMMERCIAL BANKS IN THE CONDITIONS OF RESTRUCTURING THE BANKING SYSTEM. Thesis for the degree of candidate of economic sciences. Orenburg - 2003. 2003

More on topic Essence, necessity and functions of anti-recessionary management by banks of commerce:

  1. the Maintenance of system of anti-recessionary management of banks of commerce and its development at the present stage
  2. 3.2 Directions of development of anti-recessionary management in banks of commerce
  3. Chapter 1 Theoretical bases of anti-recessionary management of banks of commerce
  4. Chapter 3. Development and perfection of the mechanism of anti-recessionary management by banks of commerce
  5. Chapter 2 the Role of anti-recessionary management of banks of commerce in the conditions of re-structuring of the Russian banking system
  6. 1.3. Necessity and features of anti-recessionary management of stability of the enterprise in market
  7. the Organization of anti-recessionary management of banks in the conditions of re-structuring of a banking system of the Russian Federation
  8. DZJUBAN SVETLANA VIKTOROVNA. ANTI-RECESSIONARY MANAGEMENT of BANKS OF COMMERCE In the conditions of BANKING SYSTEM RE-STRUCTURING. The dissertation on competition of a scientific degree of a Cand.Econ.Sci. Orenburg - 2003, 2003
  9. the Analysis of practice of anti-recessionary management of regional banks of the Orenburg area
  10. 3.1 Methodical approach to strategic management of the noncommercial organisation with use of tools of preventive anti-recessionary management