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Factors Affecting the Effectiveness of Bank Management

Author

Listed:
  • Lada Shirinyan

    (National University of Food Technologies, Kyiv, Ukraine)

  • Denys Shyrai

    (National University of Food Technologies, Kyiv, Ukraine)

Abstract

The effectiveness of bank management is determined by the ability of bank managers to influence and achieve the realization of the interests of bank owners and planned goals, to increase the profitability and value of the bank with optimal use of resources, risk reduction and implementation of technologies. The traditional approach to assessing the effectiveness of bank management focuses on financial management and financial indicators, such as profitability, liquidity and costs. However, there is no comprehensive method for assessing the effectiveness of bank management based on considering all management components. In addition, there is a need to explore further the main factors that influence the effectiveness of bank management. In this regard, the article aims to identify and systematize the areas of effectiveness and factors that influence the effectiveness of bank management. The object of the study is the effectiveness of bank management. The subject of the study is the factors that influence the effectiveness of bank management. The study is based on the hypothesis that the effectiveness of bank management can be assessed using influencing factors. Within the framework of this approach, the work identifies 7 areas of bank management efficiency: corporate governance, strategic planning, financial management, operational management, organizational management, risk management, and the introduction of innovations and technologies. Influencing factors have been identified for each area, and their classification has been carried out based on the division into internal, external, and mixed factors. Bank managers and regulators can use the proposed approach to diagnose the level of management efficiency and identify weaknesses in the structure of bank management. The developed system of factors can serve as a basis for forming management decisions aimed at optimizing resources, reducing risks, and increasing banking institutions' profitability. The results obtained can also be used to develop training programs and methodological materials for training specialists in the field of bank management.

Suggested Citation

  • Lada Shirinyan & Denys Shyrai, 2025. "Factors Affecting the Effectiveness of Bank Management," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 114-120, June.
    • Handle: RePEc:iaf:journl:y:2025:i:2:p:114-120
    DOI: 10.33146/2307-9878-2025-2(108)-114-120
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    References listed on IDEAS

    as
    1. Inna Dominova, 2020. "Effectiveness Assessment of Electronic Banking Risk Management Based on the Normative Index Model," Oblik i finansi, Institute of Accounting and Finance, issue 1, pages 91-99, March.
    2. Aebi, Vincent & Sabato, Gabriele & Schmid, Markus, 2012. "Risk management, corporate governance, and bank performance in the financial crisis," Journal of Banking & Finance, Elsevier, vol. 36(12), pages 3213-3226.
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    Keywords

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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