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3УДК 33 Turayeva J.B., Bazarova G.A., Jumayeva G.M.
Turayeva J.B.
Financial and economic secondary vocational school of Mary region
(Mary, Turkmenistan)
Bazarova G.A.
Financial and economic secondary vocational school of Mary region
(Mary, Turkmenistan)
Jumayeva G.M.
Financial and economic secondary vocational school of Mary region
(Mary, Turkmenistan)
INDICATORS USED BY MONITORING ORGANIZATIONS AND RATING AGENCIES TO ASSESS THE QUALITY OF BANK MANAGEMENT
Аннотация: this article provides a brief overview of Bank Management Quality Assessment. It also discusses the indicators used by monitoring organizations and rating agencies in evaluating the quality of management.
Ключевые слова: banking, banking management, banking policy, credit policy, banking system, risk.
Quality measures of management. The quality of bank management is the efficiency of its management system, that is, its ability to achieve the goals and objectives set for the bank.
Management quality is a characteristic of the management system of its subjects, objects, mechanisms, and tools. The management quality of each bank is analyzed and evaluated in the context of the market economy. Because the efficiency of the banking business depends on it to a great extent.
In turn, one of the criteria for evaluating the quality of management is the results of banking operations. When analyzing the results of banking operations, the following characteristics of financial management are taken into account: the adequacy of the bank's capital, the quality of assets, the adequacy of the created funds, the state of liquidity, profitability. There are also other dimensions of management quality: professional level of the bank's managers, their leadership ability, ability to quickly react to changes in the business environment and planning, efficiency of management of the bank's employees, etc. A favorable assessment of the above criteria ensures a high quality of management.
Currently, 10 key management characteristics have been identified by foreign
experts:
1) management culture,
2) the existence of common values,
3) it is profit-oriented,
4) satisfaction of customer needs,
5) willingness to invest in new products,
6) strong and consistent management and strategic thinking,
7) try to recruit more experienced employees,
8) investing in employee professional development,
9) availability of an information system that provides evaluation of the popularity of products or customers,
10) appropriate management of credit risks,
Indicators of the management quality of management, based on the analysis of foreign experience, differ in many ways.
In connection with this, it is possible to mention the indicators used by supervisory organizations and rating agencies in assessing the quality of management in banks.
The US regulator evaluates the quality of management with a set of measures that make up the financial stability of a bank. Management quality is assessed on a 5-point scale based on a wide range of objective and subjective factors.
Management evaluation begins with an analysis of the bank's performance. Well-managed banks have adequate capital, good asset quality, adequate profitability and satisfactory liquidity. Management is then evaluated in terms of compliance with laws, regulations, and standards.
In the next stage, the professional skills of managers, their management ability, and the composition of the middle and main part of management are evaluated. When evaluating bank management in the United States, special attention is paid to identifying factors of unsatisfactory management. In this regard, four types of unsatisfactory management are distinguished.
The first type of this management is bad management, its main symptoms are:
- excessive increase in credit operations and non-linear growth according to the bank's capital,
- bad credit,
- lack of internal control,
- poor planning.
The second type of unsatisfactory management is superficial management. Its essence is to hide past and current losses in order to waste time and maintain control.
СПИСОК ЛИТЕРАТУРЫ:
1. About credit institutions and banking. Law of Turkmenistan. Ashgabat, 2011;
2. About Credit Unions. Law of Turkmenistan Ashgabat, 2011.
