What is the goal of a bank

Goals of banks

Goals are normative statements (prescriptive sentences) by one (or more) decision-makers at the bank, which describe a desired future state of reality to be striven for by him (them) or others. For a community or operational form of organization "banking company", what is jointly striven for becomes the objective ought and can, with institutionalized fixation - e.g. in statutes or directives - attain the rank of objectified ought. If one restricts the considerations to commercial banks, the owners of capital are at the center of the decision-making process in banking. Your striving for (reasonable) return on the capital employed is usually of decisive importance for the formulation of overarching goals. Bodies of the bank management as well as these supervisory and control bodies supervising on behalf of the owners or other interest groups are also assigned to the centers of decision-making. In addition, employees and their representatives are increasingly involved in the formulation of corporate goals. Without having fully captured the group of potential participants in the goal-setting process, it should be noted that a large number of individuals or groups with very different powers and intentions shape the goal-setting process within a bank and that regardless of the target compromises that are reflected in target systems that are individually tailored to the company , Group and individual goals remain effective and significantly influence the implementation or feasibility of banking-related goals. Basically, banking company goals can be divided into factual and formal goals as well as quantitative and qualitative goals. The latter distinction is based on whether the goals are numerical or species-specific. Furthermore, monetary and non-monetary as well as economic and extra-economic goals can be recognized in the banking company, the delimitation of which is based on whether the banking operational goals originate from the (immediate) economic sphere or not. Traditional banking management is based, implicitly or explicitly, on the pursuit of profitability, security and liquidity as the 3 main objectives of banking activity. No uniform statements are made about the possible order of precedence between these goals. Rather, there is little agreement in the weighting of these goals. Business administration assigns two essential functions to goals as normative statements or as set values: on the one hand, a more past-oriented control function, on the other hand, a future-oriented control function. Formulating the highest bank corporate goals and ensuring that these are implemented in operational, operable and consistent target systems can be seen as a decisive prerequisite for effective performance controls and decision-making coordination that is appropriate to the bank's goals. The fulfillment of your tasks is particularly closely linked to the existence and lasting success of the bank and is therefore - as a real management decision - to be assigned to the central field of activity of (top) bank management.