What are the principles for setting up the organizational structure of a commercial bank?

Principles for the organizational structure of commercial banks.

1. The principle of competition and efficiency. Western economic circles believe that the ideal state in the financial field is to achieve "free competition". Only in this way can financial institutions improve their efficiency, provide high-quality financial services, and promote the healthy development of the economy and finance.

According to this principle, there should be new financial institutions that can continue to enter the financial field, and according to the principle of survival of the fittest, financial institutions that are not highly efficient should be constantly eliminated and withdrawn from the financial field.

2. The principle of safety and stability. While the financial industry is competitive, it must also follow the principles of sound operation and security. In order to ensure the safety and soundness of the heads of commercial banks, it is necessary to restrict excessive competition among them to a considerable extent, and it is necessary to restrict some of their business activities.

Because the competition between them is often one of the important reasons for the failure of some banks.

Many of the financial regulatory measures formulated by the Western financial regulatory authorities are of a precautionary and prudent nature, and as long as the requirements of these regulatory measures are followed, business risks can be reduced, business management will be sound and safe, and the possibility of bankruptcy will be reduced.

3. The principle of appropriate scale. From the point of view of Western economics, there is a problem of "reasonable size" of economic units or entities in any economic field. The so-called "most reasonable scale" means that at such a scale, the cost per unit of output is the lowest, and the profit is the largest.

Below or beyond this scale, the cost per unit of product will increase and the profit will fall.

Financial institutions are also businesses, so they must be moderate. If a financial institution is too small, it is not conducive to its competition; If a financial institution is too large, it often leads to monopolies. When a financial institution is in the most reasonable state, it has the lowest management costs, the largest profits, and the financial services it provides to customers will be "high quality and low price".

The organizational structure of a commercial bank is affected by many factors such as the financial system, business objectives, geographical environment, and traditional habits. Generally speaking, the following principles should be followed when setting up the organizational structure of a commercial bank:

The first is the principle of lean and reasonable.

The second is the principle of division of labor and coordination.

The third is the principle of magnitude hierarchy.

Fourth, the principle of efficiency and effectiveness.

2. The composition of the organizational structure of a commercial bank.

Generally speaking, the organizational structure of a commercial bank consists of three parts: the decision-making body, the executive body and the supervisory body.

The organizational form of China's commercial banks is:

Unit system, head office and branch system, bank holding company system, and cross-border joint system.

The organizational form of China's commercial banks:

1. Wholly state-owned commercial banks;

2. Specialized banks may take the organizational form of shares (banks) controlled by state capital;

3. The organizational form of a limited liability company (bank) with a public legal person as the main shareholder.

See the concept of the Commercial Bank Law, the promulgation of the Commercial Bank Law of China, and the provisions on the principles of operation and management of the national specialized banks into real state-owned commercial banks.

Extended Materials. The unit system refers to the organizational form in which a bank only sets up business offices in one region for independent operation, and does not allow the establishment of branches. Historically, the United States has been the most typical country to adopt the unit system.

Prior to 1994, banks were not allowed to operate or branch offices across state lines in the United States, and states had rules on the types and number of branches a bank could open. This system is conducive to preventing monopoly and establishing a local foothold. However, the unit system is not conducive to financial innovation, and the operating cost is high, making it difficult to achieve economies of scale.

In view of this, in 1994, the U.S. Congress passed the Ropes-Neal Interstate Banking and Branch Effectiveness Act, which allows commercial banks to establish branches across state lines. The Act stipulates that starting in June 1997, banks can operate across state lines in all aspects, transforming U.S. banks from a unit system to a head office and branch system.

The bank shareholding company system refers to the organizational model in which a large bank or large enterprise forms a holding company, and then the company merges and acquires two or more banks. There are usually two models of bank holding companies: one is that a large bank forms a holding company and acquires other banks; The other is the formation of a holding company by a non-bank enterprise to own bank shares.

Transnational confederation.

It is an organizational model of an international banking consortium established by a joint venture of large commercial banks of different nationalities. This is the main way of internationalization of the banking industry, and it is the product of the internationalization of production and capital.

The head office and branch system is conducive to raising and adjusting funds and improving the efficiency of capital utilization, while the head office and branch system is also conducive to resisting risks and enhancing competitiveness. However, the head office and branch system also has drawbacks, which may not only lead to excessive concentration and monopoly, but also lead to greater difficulty in management.