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Strategic Division. Financial management

Category: Bank Management

Financial Function is to ensure the perenniality of the bank and keep it solvent; it has three main functions:

To ensure that accounting information can be trusted and is in accordance with regulations: it is the accounting function.

To guarantee that the accounts balance and to manage the major banking risks (rate — liquidity — counterparty). In most banks, this mission is given to the Assets/liability management department.

These are imposed by banking regulations.

Besides, in today’s banks, a good part of the profitability comes from cash management; this is seen on the balance sheet and should be managed together with the assets/liabilities functions and the dealing rooms to collect or lend funds at the best conditions. Commercial and industrial characteristics of a modern bank imply efficient steering of the levels of activity, productivity and profitability to maximise results.

This is mostly done by the Management Control function.

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