"Accounting and banks", 2013, N 9

It is no secret that every Russian commercial bank must have a development strategy. Its format, of course, is different, there are banks where it takes 2-3 pages and it suits them, which is clearly not normal. However, control over the implementation of the bank's development strategy is a much rarer phenomenon in banks, since, in principle, it is not given due attention, since there are no direct requirements from the Bank of Russia on this issue.

Control over the implementation of the development strategy in many Russian banks is not carried out, according to at least in terms of drawing up relevant documents and regulatory procedures.

It can be noted that such control applies, among other things, to issues strategic planning bank activities. It is this control that allows answering the question: is the bank's mission being fulfilled in the context of its activities as credit institution in terms of achieving targets? The milestones of the report on the implementation of the development strategy provide a picture of the whole bank.

Development Strategy Implementation Plan

It is expedient for the bank to annually adopt by the board of directors a plan for the implementation of the development strategy for this year with financial performance. This plan contains the strategic goals of the bank's development for the current year. All departments of the bank are working on its implementation.

One can even talk not about the expediency, but about the need to adopt such a plan, since it significantly reduces the strategic risk of the bank from the point of view of the Bank of Russia. At the same time, many banks do not even have such regulatory documents as "Methodology for assessing strategic risk" or "Policy in the field of strategic risk", or they are considered purely formal.

The strategic goals of the bank, the achievement of which should be ensured by the plan, are:

development of an internal methodological base on planning and control of the bank's activities;
introduction of a system of planning and control of the bank's activities at a qualitatively new technological level.

To this end, the plan should include the following main tasks:

develop and approve a number of internal documents on strategic planning and control over the implementation of the strategy, prepared taking into account those recognized in the business community modern approaches. When developing these documents, it is supposed to use the methodology of the Balanced Scorecard - BSC (Balanced Scorecard) as the main methodology used to control the implementation of the strategy;
update internal documents on current planning and control in conjunction with the provisions of:

documents reflecting the above approaches to the development of the strategic planning and control system;
documents defining a new system of remuneration and incentives for bank employees;

automation on a single software platform of planning and control procedures, including the implementation of strategy control, determined by the bank's internal documents, will be ensured as part of the transfer to a new technological level of procedures in the field of asset and liability management.

In terms of improvement organizational structure the bank's plan should include mechanisms for solving the following tasks:

creation of collegial working bodies with the participation of representatives of subsidiary financial organizations, as well as non-credit organizations to bring together methodological approaches to solving a number of problems in the field of management in those areas where applicable. In particular, among the issues requiring the development of coordinated approaches, it seems appropriate to include:

issues of funding the activities of subsidiary financial organizations, including those related to the involvement of these organizations borrowed money in the capital markets;
issues of development of the methodological base, including the assessment of credit, structural risks of the bank and the aggregate risk assessment;
issues of personnel management;

in connection with the planned expansion of the geography of the bank's presence, the following should be done:

create its new representative offices in the regions of the Russian Federation and abroad;
if necessary, create new divisions within the internal organizational structure of the bank in accordance with the decisions of the management bodies;
provide conditions for the functioning of the created structural units;

definition of functionality, powers and responsibilities in relation to new elements of the organizational structure. To carry out related improvement of the bank's internal documents.

In addition, the need to improve the organizational structure or the functionality of its constituent elements may be due to changes in the legislative and other regulations governing the activities of the bank. legal acts, namely:

making decisions on the creation of new subsidiaries;
reorganization of individual structural divisions bank in order to develop a management system for its activities.

In order to solve the problems of improving the personnel management system, the plan should be focused on the application of modern approaches and best world practices in the field of personnel management, the continuation of work aimed at increasing the flexibility of this system, which means the possibility of its rapid and effective adaptation due to changes:

legislative and regulatory acts regulating the activities of the bank;
labor market conditions;
socio-political situation and other factors.

The solution of issues related to the search, selection and hiring of personnel should be carried out primarily through external hiring of highly qualified specialists, based on the labor market situation. Along with this, the approach to the formation of staff through internal recruitment will continue, taking into account the formed personnel reserve. For these purposes, it is planned to develop a system of adaptation of new employees, as well as further implementation of the "Employee Career Management" program.

To increase the level of motivation of employees, the plan should provide for the introduction of a new system of remuneration and motivation of employees. As part of the activities aimed at improving the system of training and professional development, the plan should ensure the solution of the following tasks:

expanding the list of educational activities aimed at developing certain personal qualities and managerial skills;
continuation of the implementation of training programs focused on the development of leadership and managerial qualities of managers, the acquisition of the necessary professional knowledge and skills.

In order to implement best practice in the field of personnel management, the plan should achieve the following goals:

expansion of interaction within the framework of interstate associations on issues of professional development of personnel and exchange of experience, including within the framework of the development of the Cooperation Agreement between member banks of the Interbank Association of the Shanghai Cooperation Organization and the Memorandum of Cooperation between the state financial institutions for the development and support of exports of the BRICS member countries;
studying and using the experience of Russian and foreign development institutions by organizing events for the exchange of experience;
transfer of the personnel management system to a single software platform.

In the field of development of information technology support for the bank's activities for the planned period, the plan should provide:

development of IT services required by the bank's business processes, in terms of their composition and level, determined by functionality, availability, capacity, security, continuity of IT services;
improvement of the bank's IT management system;
effective management financial and human resources necessary for the provision of IT services and the operation of the IT activity management system.

It should be noted, however, that such a plan is not identical financial plan, as well as the bank's budget for the current year. The plan for implementing the development strategy also contains qualitative guidelines for the bank's activities, not excluding quantitative indicators of the balance sheet. The development strategy implementation plan is one of the mandatory issues corporate governance and is an indicative planning document in the bank.

The strategy implementation plan for the current year is very closely intertwined with budgeting issues at the bank. In principle, one can express the idea that such a plan also includes many budgeting issues in the context of strategic goals. At the same time, the plan does not fully reflect all issues of the bank's budget in the context of activities by departments.

It is impossible not to touch upon the fact that indicative planning, i.e. goal-setting planning based on key indicators (indicators) leads to a clear understanding by the bank's management of the goals that need to be achieved in the short term. Such planning allows you to choose the right and best practices achieving the set goals. It is also necessary to consider the dependence or influence of indicators of change external environment(legislation, actions of competitors, the emergence of new technologies, customer base, etc.) and the internal environment of the bank (personnel, management organization, applied banking technologies, resources, etc.).

An assessment of indicators of changes in the external environment may look like this:

the bank is purposefully increasing its client base, while remaining focused on serving small businesses real sector economy;
considers the competitive environment favorable from the point of view of the applicability of the norms of legislation;
systematically purchases equipment to improve the reliability of the bank's functioning as a credit institution;
notes the high difficulty in funding resources for development in the market.

Evaluation of indicators of changes in the internal environment of the bank may look like this:

the bank evaluates the existing team as a team of professionals capable of solving all the tasks;
improves corporate governance procedures, considering the current management system as optimal.

Overall rating:

indicators of the external environment are currently unfavorable for the bank in terms of funding resources, however, the accumulated resources of the bank make it possible to overcome these unfavorable moments for its development;
indicators of the internal and external environment of the bank are conditions or variables of the dynamic part of the development strategy in the context of the dependence of the bank's actions on indicators as a variational model of business development. Basically, not all big banks the top 100 include such indicators in their development strategies, since these indicators very often cannot be assessed due to both their qualitative nature and the unexpected appearance of new aspects of phenomena in the country's public life. It should be noted that the influence of indicators is one of the issues for self-assessment of corporate governance in commercial banks.

Example 1. Bank strategy implementation plan for ____ year

1. On the strategic goals of the bank

The bank's development strategy involves strengthening and expanding the bank's position by financial market in the following areas:

strengthening and expanding the bank's position in the financial market should be developed in accordance with the directions of its development strategy.

We need to develop our client base. For this you need:

organize efficient, high-quality, high-tech settlement and cash services customers that meets modern business development requirements;
create a mechanism that will attract and effectively allocate cash and resources, which is able to provide a balance between such indicators as reliability, liquidity and profitability of assets;
create a mechanism that will facilitate the rapid search and financing of the most profitable production, trade and investment transactions and projects. At the same time, urgency, repayment and payment must be ensured;
implement effective support for the risk assessment and management system, an integrated management system that complies with the requirements current legislation and regulations relating to the activities of the bank. This prevents the risk of unforeseen losses and does not damage his reputation;

implementation of procedures internal control.

Also, in order to expand the positions of the bank, it is necessary to carry out an internal control procedure. In order to achieve a more efficient functioning of the internal control system, it is necessary to carry out periodic inspections of compliance by bank employees with regulations, current legislation, standards regarding professional activity, an appropriate level of reliability, which corresponds to the nature of the operations carried out in the bank, and minimizing the risks of its activities.

By conducting continuous monitoring, weaknesses in the internal control system can be quickly identified and corrected. The development strategy of the bank and its development prospects provide for a clear distribution of powers and responsibilities of each of its structural units responsible for conducting operations. In cases where the functions of departments intersect or the transaction poses a high risk, additional control should be carried out, a collegial decision should be made and a legal assessment of the operations and transactions conducted by the bank should be carried out;

implementation of internal control rules in order to counter the legalization of proceeds from crime and the financing of terrorism.

Expanding the client base by attracting new clients, whose activities at the initial stage of interaction with the bank are not sufficiently studied, increases the risk of using the bank's mechanism for the purposes of legalization (laundering) of proceeds from crime.

When expanding the client base and the proposed product range, the bank uses a special program for studying, identifying the client, as well as monitoring ongoing operations. Introduction of automated banking system, which provides for the functions of identifying a client, monitoring payments from the position of identifying suspicious transactions or transactions subject to mandatory control, excludes the possibility of legalizing proceeds from crime through the bank's settlement instruments.

Compliance with the adopted internal control procedures is carried out by employees of the relevant structural divisions of the bank at all levels of risk management in a preliminary, current and subsequent order through administrative and financial control.

2. About incentives for labor activity

Ensuring the compliance of bank employees appointed to managerial and other positions to which the current legislative and regulatory legal acts (including acts of the Bank of Russia) apply special requirements regarding education, qualifications, length of service and other aspects of their biographies, this established requirements. Strict observance by all employees of the bank, regardless of their positions and official functions, of the corporate governance code, which contains the main provisions relating to the business culture of the bank.

In the near future, the goal of banking policy will be to improve personnel management with its subsequent maintenance at a modern level in order to solve the strategy of banking development.

The main direction of personnel policy consists of the following main points:

building relationships with the team on a long-term basis, directing funds and efforts to improve the personality of absolutely every employee with his subsequent consolidation in the team;
establishing a remuneration system that will adequately take into account the results and costs of the work of the team;
installations in relation to the team effective financial policy, which will include social benefits and systems of non-material incentives for the process of labor activity;
the process of adaptation in the team of new employees, as well as the effective and timely implementation of recruitment;
improvement of the team;
improving and maintaining the qualifications of employees and managers;
development within the communication bank;
formation and subsequent maintenance of the banking corporate culture;
optimization of the socio-psychological situation;
creation of benefits and guarantees for personnel, which are provided for by the legislation of the Russian Federation.

Professionalism in the work of bank employees, based on the observance of business ethics and the principles of corporate culture, is perhaps the most important condition for the development of the bank.

3. On the competence of the banking board of directors

The bank's board of directors, as a rule, is responsible for the general management of the activity. Exceptions are issues related to the executive bodies of the bank and the competence general meeting participants.

The exclusive competence of the banking board of directors in accordance with the charter includes:

creation of internal effective banking control with its subsequent functioning;
regular consideration at meetings of the board of directors of the bank of the organization of internal control and measures to increase its effectiveness, as well as their discussion with the competent executive bodies;
consideration of documentation on the implementation of the internal control system, which is prepared in advance by the executive banking bodies, the internal control service or the employee responsible for combating money laundering and the financing of terrorism, other structural banking divisions, the audit organization performing the audit;
taking measures that contribute to the active implementation by the executive banking bodies of the comments and instructions of the internal control service, oversight bodies, an audit organization performing an audit;
timely verification of compliance of internal control with the conditions and scope banking when they change;
consideration with subsequent approval of the regulation on the banking internal control service, plans for the implementation of audits of the banking internal control service and reports and proposals for their implementation;
consideration of reports of the controller of banking activities in the securities market in the role professional participant;
approval of the appointment of a candidate for the position of the bank head of the internal control service;
making proposals for candidates whose appointment to positions requires approval from the Bank of Russia;
recommendations in resolving issues related to the reorganization of the bank, the conclusion of transactions, the distribution of profits, participation in associations commercial organizations and other priority areas of its activities;
recommendations on the amount of compensation paid, remuneration to the bank auditor or members of the audit commission;
consideration of other issues that are not related to the exclusive competence of the general banking meeting of participants, as well as banking executive bodies.

4. On the banking development strategy

The basis for achieving the strategic goals set for the bank is institutional development. It should provide an infrastructure that meets the needs of the development and support of the business of the bank's clients.

The Bank solves the problems of creating risk management systems, management reporting systems, automated document management, personnel management and modernization of accounting systems. One of the main projects of the bank is the optimization of its organizational structure. Special attention given to the system of control and risk management, without strengthening which it is impossible to create a large and stable financial institution.

Banking activity is formed on the basis of the following principles:

the first and main one is work that is within the limits of available resources. This is ensured by matching the nature of the bank's assets to the characteristics of the resources mobilized by it, ensuring a favorable match between the attracted resources and its own funds, as well as control over bank liquidity;
The second important principle is the economic viability on which banking activity is based, it implies economic banking responsibility for the results of its activities. This independence is expressed in the free disposal of one's own bank funds or borrowed resources, as well as in the freedom to choose partners and clients. However, it should be noted that freedom of action implies strict compliance with the requirements of current legislation. The consequence of economic independence is economic responsibility. The Bank assumes the risk as a result of its operations, answering with all its property and funds for its obligations;
building mutual understanding with partners and clients on a mutually beneficial basis, while combining the client's interests with their own means, is the third principle;
The fourth principle of banking is that it is regulated.

The scope of banking activities is focused on all segments of the financial and banking services market in full compliance with the license. This provides:

reduction of possible risks due to the banking services and diversification of ongoing operations;
improvement and improvement of the quality level banking service;
exclusion of a possible worsening of the situation for investors.

provision by the bank of high-quality and comprehensive financial services to their clients;
creation of reliable guaranteed conditions for servicing customer operations;
introduction of new competitive banking technologies;
development of a stable client base with its subsequent expansion through involvement in customer service;
introduction of new products, as well as an increase in the range of banking services;
subsequent expansion of the statutory banking fund;
strengthening the financial position, as well as achieving profitability of ongoing operations with possible risk, but not higher than acceptable.

Thanks to banking development in these areas, the efficiency of its functioning will increase, the scope of activities will expand, mechanisms for responding to changes in the situation in the economy will be developed, and most importantly, a stable financial situation will be ensured.

The above promising directions activities imply the achievement of the main goal - ensuring further growth own funds, including bank profits. In addition, successful work in these areas is a source of the bank's own development and progress.

Report on the implementation of the development strategy

Every six months, the Board of Directors approves a report on the implementation of the development strategy plan. It is also possible to consider the report in a shorter time, for example, once a quarter. Such a report contains a description of the main operations of the bank by line of business and the control figures for its financial planning. The report allows the board of directors to get an idea of the current state of affairs in the bank and, accordingly, those issues that need to be paid attention to due to insufficient efforts on the part of the executive bodies of its management.

The report can be built according to two main models:

thematic approach - blocks of questions on the main areas of the bank's activities. In this case, the report contains the main management indicators of the work of the bank and its structural divisions;
problematic approach - grouping on problematic issues of the bank's activities that require resolution and response from its board of directors in a strategic perspective.

If a thematic approach is applied, then it is advisable to include such areas as lending, customer base, currency control, transactions with precious metals, interbank lending, bill transactions. Information for each area should provide the members of the board of directors with generalized information on indicators, without delving into unnecessary details. The report should not be of a formal nature, but should allow presenting a picture current state cases in the bank, being a management reporting document. We can say that it is the most important document of the bank's management reporting or management accounting information.

Management accounting information is financial and operational data on the types of activities and processes carried out in the bank, the functioning of its structural divisions, the products and services it produces, and the bank's customers. To date, there is no unambiguous definition of management accounting. Any normative the legislative framework no management accounting. Sometimes, for simplicity, management accounting is limited only to the tasks of collecting, aggregating (grouping) information and generating management reporting, i.e. the formation of an information environment for managers and managers who make management decisions.

Management reporting in the bank is aimed at additional disclosure of operational issues that require constant monitoring by the bank's management. In most Russian banks, it is in the nature of situational monitoring, rather than reporting on an ongoing basis. At the same time, it should be noted that a number of parameters of such reporting are mandatory, including documents of the internal control service, the responsible AML/CFT officer.

An important issue is that the board of directors should always have an idea in the short term about the implementation of the strategic goals of the bank's development. The issue of such informing is decisive for the performance of the functions of control over the activities of management bodies. The board of directors should always have a comprehensive understanding of the situation in the bank, both in general in the form of a perspective, and on individual development issues. Thus, the board of directors must always be aware of what is happening in the organization in order to make strategic decisions on the management of the bank's business.

Instruction of the Bank of Russia No. 2005-U dated April 30, 2008 "On the assessment economic situation banks" refers to the strategic risk issues of control of the bank's development strategy by the board of directors. The Bank of Russia considers such control in this case as mandatory. The very nature of the assessment questions of this instruction indicates a certain focus of the regulator on increasing the responsibility of banks in monitoring the implementation of their own development strategies and excludes to some extent a formal approach to business.

Along with the bank's management and accounting reports, the report on the implementation of the development strategy should contain an analysis of the achievement of a number of summarizing indicators that comprehensively cover its progress. Such a mechanism is created on the basis of the balanced scorecard (BSC) widely used in modern practice of strategic management, which includes the following elements:

a strategic map of the bank and strategic maps of independent structural units. The strategic map visualizes the strategy in terms of goals and main areas of activity, united by cause-and-effect relationships;
a system of balanced financial and non-financial key performance indicators (KPIs) characterizing the strategic goals of the bank;
a portfolio of strategic initiatives needed to implement the strategy;
the bank's strategic budget, which is an integral part of its budget and includes the costs of implementing the bank's programs and projects aimed at achieving strategic goals.

An integral indicator of the implementation of the development strategy is the bank's competitiveness. It is assessed by building a dynamic model of competitiveness that reflects the dynamics of the integral indicator during the analyzed period.

Competitiveness assessment commercial bank includes building a model of its activities and a model for assessing the level of its competitiveness. The developed dynamic simulation model for assessing the level of competitiveness of CB allows you to determine the values of the main financial and economic indicators in future periods that characterize the effectiveness financial activities bank, analyze the level of its competitiveness, changing its main components, and also contributes to improving the efficiency of bank management.

A dynamic model consists of a set of interrelated elements that are included in the model as variables. The main component of the dynamic simulation model of KB is profit.

To assess the competitiveness of design bureaus, the following indicators are defined:

the level of competitiveness of the service;
level credit risk;
banking risk index.

The developed model allows to determine the level of competitiveness of the bank in general view; for a more accurate assessment, it is necessary to introduce additional parameters that characterize the bank's competitiveness. The results obtained will allow its management to more accurately develop a development strategy, taking into account its competitiveness.

Based on the calculation of the level of competitiveness and the identification of factors, the bank's management can determine it competitive advantages and determine the prospects for business development.

Further research into assessing the level of competitiveness should be directed, on the one hand, to the development of a mechanism for assessing competitiveness, which will allow, based on the existing stages of assessment and appropriate analysis methods, to develop management decisions to increase the level of competitiveness of the bank, and on the other hand, to develop an information and analytical assessment system competitiveness of the bank, will reduce the loss of information between different levels of management and will contribute to the adoption of sound, operational management decisions.

Example 2. Report (every six months) on the implementation of the plan for implementing the bank's development strategy for __ ____ years

As of ________ 20__, the bank's assets amounted to ________ thousand rubles. Net loan debt reached _______ thousand rubles. Profit based on the results for the first half of 20__ amounted to ________ thousand rubles. As of 1 __ 20__, customer funds reached ________ thousand rubles.

Authorized capital

In the first half of 20___ authorized capital Bank did not increase and amounted to ________ rubles.

Interbank lending

Permanent counterparties for interbank lending are _______ banks, among which are the leading Russian banks. According to the results of the first half of 20__, the turnover on interbank loans averaged ________ billion rubles per month. Placed at a maximum in ____ 20__ ________ million rubles, attraction in ___ 20__ at a maximum of ________ million rubles. Banknote operations are actively developing.

Currency control

On an average monthly basis in the first half of 20__, ________ transaction passports were serviced by the bank, transfers abroad in dollars - an average of ________ million dollars per month, at a maximum in ________ 20__ in the amount of ________ thousand US dollars. Transfers in euros are negligible, with a maximum of ________ euros in February 20__.

Bill transactions

On average, monthly in the first half of 20__, the bank issued ________ own bills in the amount of ________ million rubles monthly. Transactions with third-party promissory notes amounted to an average of ________ million rubles per month. The main issuers of discounted promissory notes ________.

Client base

Client account balances tend to increase. In the first half of 20__, debit turnovers on customer accounts averaged more than ________ billion rubles on a monthly basis. The client base is stable. On average, ________ accounts were opened monthly.

Lending

On average, it was credited monthly in the first half of 20__ to ________ clients. Loan debt amounted to _______ million rubles. The enterprises of the Moscow region are credited.

Future - strategic audit

More broadly, the question is whether the mission of the bank as a credit institution is being realized in principle. For such an assessment, it is necessary to conduct a strategic audit as an assessment of the entire bank, taking into account the external environment. A strategic audit is about as difficult an assessment as the effectiveness of a bank's business processes.

Standard internal control services are unable to conduct such an assessment due to the lack of the necessary qualifications and managerial experience. Internal control services, as part of the internal control of banks, usually evaluate Bank operations only in terms of their compliance with the regulatory documents of the Bank of Russia.

Probably, to conduct a strategic audit, it is advisable to form a temporary working group based on the decision of the board of directors. The time interval for such an audit is one year; the report on the results of the strategic audit is approved by the board of directors. Such a report would allow comprehensive assessment strategic vision of the bank's place as part of the Russian banking system.

The form of the report, as a proposed questionnaire, is also subject to approval by the board of directors of the bank. It would probably be right to develop a separate regulation on strategic audit in the bank, and it would hardly be reasonable to include strategic audit in the audits of the bank's internal control service. Members working group must have the necessary access to all the internal documentation of the bank for reliable conclusions about its activities. It would be expedient to determine the working time of such a working group in the range of 15 - 30 calendar days.

It should be noted that in normative documents The concept of a strategic audit is absent from the Bank of Russia, barely touching on the procedures for implementing the bank's development strategy. And in the near future the Bank of Russia does not intend to pay close attention to this issue. Recommendations in the form of a questionnaire are also absent from the side of the regulator, the recommendations relate only to the development of a bank development strategy and its content. For now, the Bank of Russia aims to develop business planning as part of ongoing financial planning.

* * *

Thus, we reviewed the main procedures for monitoring the implementation of the bank's development strategy and provided practical forms of this procedure. We hope that in the future banks will pay closer attention to this issue, albeit with a certain degree of formality. Unfortunately, we emphasize once again that the Bank of Russia treats these problems as insignificant.

Ordinance N 2005-U regarding the assessment of strategic risk requires the bank to exercise such control. However, this applies only to strategic risk, and nothing more. On a permanent basis, the regulator does not require banks to carry out such monitoring, applying more "heavy" criteria for evaluating banks by its supervisory block.

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Implementation of the strategy

The Development Strategy of Sberbank Group until 2018 was approved by the Supervisory Board on November 11, 2013. In 2014, the bank developed and implemented a strategy implementation mechanism and started implementing key strategic programs. The systemic transformations envisaged by the Strategy do not lose their relevance in the changed conditions, and some qualitative changes require even faster implementation.

At the end of 2014, the bank achieved significant progress in each of the strategic areas of development. Sberbank showed the most significant successes in the area of innovative banking, operational efficiency and cross-selling.

With a client for life:

“We will build very deep trusting relationships with our clients, become useful, sometimes invisible and an integral part of their lives. Our goal is to exceed our customers' expectations"

Sberbank is systematically working to constantly improve the quality of services provided to customers and expand its product line.

The results of the annual survey showed that customer perception of Sberbank has grown significantly in a number of ways:

In 2014, the bank improved the model of work with all segments of corporate clients. One of the results was an increase in the number of products per client in all mass segments of the corporate business:

Sberbank pays great attention to promoting cross-selling in the retail segment. In 2014, the number of products per active retail customer increased to 2.0.

Sberbank has created one of the largest and most accessible banking loyalty programs in Russia. At the end of 2014, the number of clients connected to the program reached 14.2 million people. The partner network includes more than 1000 leading companies.

Team and Culture:

“We strive to ensure that our employees and the corporate culture of Sberbank become one of the main sources of our competitive advantage”

In 2014, Sberbank ranked 3rd among the best employers in Russia for students and graduates in the Universum Global ranking.
The level of staff turnover at Sberbank in 2014 decreased by a quarter, and the engagement index increased from 61% to 69%.
In 2014, the Corporate University of Sberbank began its work. Given educational institution has no analogues in Russia among corporate universities. In 2014, 26,100 people were trained under the programs and projects of the Corporate University.
As part of the communication of the strategy, mission and values at all levels of the organization, strategic conferences were held in all territorial and subsidiary banks. Each manager at his level took part in promoting the renewed mission and values of the Group. This ensures a uniform understanding of Sberbank's development paths and well-coordinated work of the entire team.

Technological breakthrough:

“We will complete the technological modernization of the Bank and learn how to integrate into our business all the most modern technologies and innovations"

In the Development Strategy 2014-2018, two key vectors for the development of technologies were identified: the completion of the modernization started in 2008 and the creation of conditions for the implementation of the most innovative solutions. In 2014, Sberbank Group made significant progress in all areas:

DenizBank is recognized as the most innovative bank in the world according to the Bank Administration Institute (BAI) for the quality and innovativeness of its internal processes.
Sberbank Online was recognized as the best mobile bank and Internet bank in Russia and Central and of Eastern Europe(according to Global Finance and Synnovate).
The number of active users of the Mobile Bank SMS service grew by 40%, Sberbank Online by 109%.
1.65 million customers use the Sberbank Business Online service. More than 1 million documents are processed daily.
The process of merging the Automated Banking Systems (ABS) of the territorial banks of Sberbank and switching to a single IT platform has been completed by 95%.
Work has begun on developing the concept of an optimal product offer for the client as part of projects to develop Big Data technologies.

Financial performance:

“We will increase the financial return of our business through better management of costs and risk/reward ratio”

Sberbank has achieved good results and continues to work on improving operating efficiency - income growth significantly exceeded the growth of expenses, as a result, the ratio of expenses to operating income decreased to 43.4% (-2.7 percentage points compared to the result of 2013).
A methodology has been introduced for using the return on capital indicator taking into account risks ( Risk Adjusted Return on Capital (RAROC) - risk-adjusted return on capital RAROC). The use of RAROC provides flexibility in the price offer for the client for individual products, based on the ratio of the level of risk and total return in all areas of the bank's business with this client.
Implemented tools and infrastructure for calculating Basel III liquidity ratios in subsidiary banks.

Mature organization:

“We will develop organizational and management skills, create processes that correspond to the scale of Sberbank Group and our level of ambition”

Significant progress has been made in implementing effective risk management systems in the Group's subsidiary banks.
At the end of 2014, the Sberbank of Talents career portal entered the TOP-8 of the best Internet sites in the world in the Buried treasures nomination. This portal was successfully integrated with the internal SAP Recruiting system and with three leading online job search sites (www.hh.ru, www.superjob.ru, www.job.ru).
In 2014, within the framework of improving the level of corporate governance and compliance with the best world practices, the implementation of the plan for the implementation of the provisions new edition of the Corporate Governance Code of the Bank of Russia, the Corporate Secretary Service was created, and a decision was made to reduce the number of members of the Supervisory Board from 17 to 14 people in accordance with the best international corporate governance practice standards.
The management reporting system (Management Information System), which provides the management with information about the bank's key business indicators, has been further developed. As part of the improvement of the MIS system in 2014, it was possible to achieve the presentation of information in the context of key indicators with details down to an individual client or business unit. The MIS system is used as a basis for business planning and motivation schemes at all levels of the bank's management.

Tools

The main principle of our strategy is a high level of integration of corporate and retail business. Having firmly secured its place in the market as universal bank we continue to develop dynamically.

Dmitry Orlov
Chairman of the Board of Directors

Bank Vozrozhdenie's strategy is based on development in key areas related to the needs of the corporate and retail sectors Russian economy, and ensuring long-term growth in the value of the business in the interests of its shareholders.

The main priority of the bank is to provide comprehensive services to legal entities and individuals, improve the quality of service in order to strengthen competitiveness and develop the brand. The Bank seamlessly combines investment in business expansion with a cost optimization policy to increase efficiency and ensure high profitability of operations.

Corporate business is a key area of development for Bank Vozrozhdenie. In corporate business, the bank focuses on the development of long-term cooperation with clients while maintaining an optimal balance of risks. The increase in the client base is carried out by attracting small and medium-sized business clients, individual work with large clients, focusing on the bank's clients, whose branch network coincides with the regional presence of the bank's branches.

The key success factor is an integrated approach to servicing each corporate client and its employees, improving the quality of service, and different approaches to working with different client segments. The bank builds relationships with the client based on his needs and offers a separate service, but the necessary set of products for each client.

The retail segment is the second key area for business development, both in the coming years and in the long term.

The main product lines of the retail segment are:

Contributions;
Consumer and mortgage credit lending;
Operations with bank cards, including lending based on them;
Payment and cash service for individuals, including through remote banking.

At the same time, it should be noted that the bank considers deposits of the population as the most important source of funding credit operations and as a factor stabilizing the activity of the bank, even during significant changes in market conditions.

The main technological challenges that need to be addressed to implement the bank's strategy include:

Optimization of internal business processes to ensure the financial stability of the bank by improving the efficiency of its business model, high quality standards for transactions and a conservative risk policy;
Formation of a modern service infrastructure, provision of high-quality banking services on its basis and ensuring a high level of information security for customers;
Improving the quality of customer service through the use of advanced information and telecommunication technologies;
Improving the quality and efficiency of interaction with public authorities, as well as other organizations;
Professional development of personnel in the field of information and telecommunication technologies;
Opposition to the use of information and telecommunication technologies that threaten the bank's activities.

Given the geographic diversification of its business, the bank adheres to a regional development strategy based on expanding its presence in those regions where the bank's branches are already located. It is planned to increase the sales infrastructure based on offices and self-service devices in combination with Internet and mobile banking with the aim of long-term and balanced growth of all business lines and in accordance with the needs of the market in each specific region.

The marketing strategy of Vozrozhdenie Bank is inextricably linked with the bank's business objectives and is aimed at increasing the competitiveness of products and increasing customer loyalty and satisfaction by:

Development of sales channels (including branch network);
Creation and support of products that more fully meet customer needs than competitors' products;
Ensuring high standards of customer service;
Bank brand development.

The bank's strategy provides for the continuous development of the corporate governance system in accordance with the best world practice and the interests of shareholders. The Bank seeks to improve the efficiency of the Board of Directors, including through the use of self-assessment procedures and optimization of interaction processes with executive management. The participation of the Board of Directors in the current activities of the bank is expanding by improving the procedures for monitoring the implementation of its decisions by the operational management of the bank.

Our strategy in action

	Balanced credit and resource policy	Reliable risk management	Corporate clients Service at every stage of business development	Retail clients Customer service at every stage of the life cycle	Improving operational efficiency
Progress in 2013	Increase in the share of working assets by 1.5 p.p. up to 79.9% Improvement in the ratio of loans and deposits by 8.4 p.p. up to 104.7% Increasing the responsiveness to market conditions in management interest rates	Tighter requirements for the concentration of credit risk in the corporate loan portfolio Establishment of the Operational Risk Management Department within the Risk Control Department Establishment of the Pledge Department	Growth in the number of customers compared to the previous year in all significant segments Completion implementation modern system remote banking service (Internet-Client) Successful cooperation with SME Bank Implementation of the microbusiness program in 19 branches	Growth of retail loan portfolio above the market Synergy of retail business lines and business based on bank cards, RBS development Conducting the second and launching the third securitization of the mortgage portfolio	Launch of a number of significant innovations as part of the operating model optimization project: FRAUD analysis, automatic payments, centralization of account opening, etc. Creation of the Operations Center Tight control over operating costs
Goals for 2014	Ruble/Currency ratio in the balance no more than 80/20 share liquid assets - 17-18% Loans/Deposits ratio - 100%±10 p.p.	Further decrease in the concentration of the loan portfolio Development of a risk assessment system in accordance with the requirements of Basel II and III Credit quality control	Increasing the share of lending to small and medium-sized businesses Formation of a diversified client base. Growth in cross-selling and commission income. Development of factoring. Optimization and development of the cash collection service Implementation of the micro business program in all branches provided by the project (28)	Active development of remote sales channels Implementation of a system of a single targeted product offer for customers across all sales channels Growth in cross-selling	Beginning of bank-wide implementation of major centralization changes Definition of a new format of offices Changing the planning system
Risks	Ruble devaluation Lack of liquidity in the market	Closed capital markets Economic slowdown (deterioration of macroeconomic indicators)	Economic slowdown (deterioration of macroeconomic indicators) Deterioration of creditworthiness of companies in the segment of small and medium-sized businesses Increasing competition in the market for products that generate non-interest income	Economic slowdown (deterioration of economic indicators) Project delay due to slow introduction of new technologies Decrease in incomes of the population and effective demand	Risks of slowing down implementation, damage to the quality of service Ruble devaluation and growth in IT spending Competitive environment and low business activity
KPIs	Net interest margin Asset Growth Loan/deposit ratio	Reserves/Bad debt 90+ Cost of risk Capital adequacy according to Basel III (N 1.0.)	Corporate Loan Portfolio Growth Rates Share of SME portfolio Portfolio share of microbusiness	Growth of the retail loan portfolio Mortgage portfolio growth Cross-selling ratio - number of products per customer	Cost to income ratio Growth rate of operating expenses Share of non-interest income
Key operating indicators for 2013	4,50% Net interest margin	108% Reserves / Bad debt 90+	2% Growth of the corporate loan portfolio	30% Growth of the retail loan portfolio	59,9% Cost-to-income ratio before provisions

Practical steps to implement the strategy

Practical steps to implement the Bank Vozrozhdenie strategy are divided into the main areas of the bank's activities (corporate and retail businesses) and are aimed at implementing a balanced credit and resource policy, reliable management risks and increase the efficiency of operations.

With regard to the development of corporate business, the bank intends to:

To increase the efficiency of interaction with the client base by working with the maximum number of enterprises in the regions of the bank's presence,
Develop sales in the medium and small business,
Diversify the client base to reduce the risks associated with the departure of large clients, primarily through work to attract small and medium-sized businesses to service,
Strengthen customer retention
Develop cross-selling
Develop new products based on emerging customer needs,
Attract new clients
Increase the number of payroll projects in order to expand the client base of bank card holders,
Develop an acquiring network.

In the retail business segment, the bank sets itself the strategic task of maintaining its position in the TOP-15 of Russian banks in terms of the amount of funds raised from the population. The share of household funds in the balance sheet of Bank Vozrozhdenie will be maintained at a level of at least 40%.

The bank's share in the deposit market is planned to be increased to 1%. At the same time, the level of return on deposits will be built on the basis of the market and the offers of the main competing banks, as well as the bank's internal needs for resources.

Bank Vozrozhdenie plans to constantly improve the consumer properties of deposits and related services, focusing on changes in consumer demand and other market conditions.

The formation of the bank's retail loan portfolio is planned to be carried out by issuing loans to existing customers with a confirmed credit or payment history, as well as to individuals working at enterprises that are the bank's customers under payroll projects.

At the same time, Vozrozhdenie Bank will continue to develop its bank card servicing infrastructure as a basis for attracting clients to payroll projects, followed by active cross-selling of the entire line of products and services for private clients.

The strategic goal of Bank Vozrozhdenie is the development of information and telecommunication technologies to increase competitiveness, reduce the cost and labor intensity of banking technological processes, improving the efficiency of the bank's management system.

To achieve these goals, the bank plans to:

Develop services provided through multi-channel remote banking (MDBO) for managing customer accounts and assets;
Constantly optimize and increase the mobility of information infrastructure through centralization and virtualization of computing resources, integration information systems and unification of banking technological processes;
Develop a monitoring system for banking technological processes;
Develop decision-making systems by centralizing reporting, risk assessment and management systems.

As part of the development of the regional development strategy, the bank plans to strengthen its positions in the following regions:

Moscow region. IN this region includes bank divisions located in Moscow, the Moscow region and the regions adjacent to it - Tula, Yaroslavl, Kaluga and Ryazan.
South Region. This region includes bank divisions located in the Rostov and Volgograd regions, Krasnodar and Stavropol regions.
Northwest region. This region includes bank divisions located in St. Petersburg, Murmansk, Petrozavodsk, Kaliningrad.

Strategic Priorities

The strategic priorities of Bank Vozrozhdenie are related to the development of the main areas of activity:

Development of the corporate business segment
Development of the retail business segment
An increase in non-interest income
Development of business technologies
Development of the bank's branch network
System improvement internal management
Development of the risk management system.

Roman PASHKOV, Head of Legal Department, International Bank for Finance and Investments OJSC

Control over the implementation of the development strategy in many Russian banks is not carried out, at least in the sense of compiling the relevant documents and regulatory procedures.
It can be noted that such control refers, among other things, to the issues of strategic planning of the bank's activities. It is this control that allows answering the question: is the bank's mission being fulfilled in the context of its activities as a credit institution in terms of achieving target indicators? The milestones of the report on the implementation of the development strategy provide a picture of the whole bank.

Development Strategy Implementation Plan
It is advisable for the bank to annually adopt a plan for the implementation of the development strategy for the current year with financial indicators by the board of directors. This plan contains the strategic goals of the bank's development for the current year. All departments of the bank are working on its implementation.
One can even talk not about the expediency, but about the need to adopt such a plan, since it significantly reduces the strategic risk of the bank from the point of view of the Central Bank of the Russian Federation. At the same time, many banks do not even have such regulatory documents as the “Strategic Risk Assessment Methodology” or “Strategic Risk Policy” or they are regarded as purely formal.
The strategic goals of the bank, the achievement of which should be ensured by the plan, are:
development of an internal methodological base on planning and control of the bank's activities;
introduction of a system of planning and control of the bank's activities at a qualitatively new technological level.
To this end, the plan should include the following main tasks:
develop and approve a number of internal documents on strategic planning and control over the implementation of the strategy, prepared taking into account modern approaches recognized in the business community. When developing these documents, it is supposed to use the methodology of the Balanced Scorecard (Balanced Scorecard) as the main methodology used to control the implementation of the strategy;
update internal documents on current planning and control in conjunction with the provisions of:
1) documents reflecting the above approaches to the development of a strategic planning and control system;
2) documents defining a new system of remuneration and incentives for bank employees;
automation on a single software platform of planning and control procedures, including the implementation of strategy control, determined by the bank's internal documents, will be ensured as part of the transfer to a new technological level of procedures in the field of asset and liability management.
In terms of improving the organizational structure of the bank, the plan should include mechanisms for solving the following tasks:
creation of collegial working bodies with the participation of representatives of subsidiary financial organizations, as well as non-credit organizations to bring together methodological approaches to solving a number of problems in the field of management in those areas where applicable. In particular, among the issues requiring the development of coordinated approaches, it seems appropriate to include:
1) issues of funding the activities of subsidiary financial organizations, including those related to the attraction of borrowed funds by these organizations in the capital markets;
2) issues of development of the methodological base, including the assessment of credit, structural risks of the bank and the aggregate risk assessment;
3) issues of personnel management;
in connection with the planned expansion of the geography of the bank's presence, the following should be done:
1) create its new representative offices in the regions of the Russian Federation and abroad;
2) if necessary, create new divisions within the internal organizational structure of the bank in accordance with the decisions of the management bodies;
3) provide conditions for the functioning of the created structural units;
definition of functionality, powers and responsibilities in relation to new elements of the organizational structure. To carry out related improvement of the bank's internal documents.
In addition, the need to improve the organizational structure or the functionality of its constituent elements may be due to amendments to the legislative and other legal acts regulating the activities of the bank, namely:
making decisions on the creation of new subsidiaries;
reorganization of individual structural divisions of the bank in order to develop a system for managing its activities.
In order to solve the problems of improving the personnel management system, the plan should be focused on the application of modern approaches and best world practices in the field of personnel management, the continuation of work aimed at increasing the flexibility of this system, which means the possibility of its rapid and effective adaptation due to changes:
legislative and regulatory acts regulating the activities of the bank;
labor market conditions;
socio-political situation and other factors.
The solution of issues related to the search, selection and hiring of personnel should be carried out primarily through external hiring of highly qualified specialists, based on the labor market situation. Along with this, the approach to the formation of staff through internal recruitment will continue, taking into account the formed personnel reserve. For these purposes, it is planned to develop a system for adapting new employees, as well as further implementation of the Employee Career Management program.
To increase the level of motivation of employees, the plan should provide for the introduction of a new system of remuneration and motivation of employees. As part of the activities aimed at improving the system of training and professional development, the plan should ensure the solution of the following tasks:
expanding the list of educational activities aimed at developing certain personal qualities and managerial skills;
continuation of the implementation of training programs focused on the development of leadership and managerial qualities of managers, the acquisition of the necessary professional knowledge and skills.
In order to implement best practice in the field of personnel management, the plan should achieve the following goals:
expansion of interaction within the framework of interstate associations on issues of professional development of personnel and exchange of experience, including within the framework of the development of the Cooperation Agreement between member banks of the Interbank Association of the Shanghai Cooperation Organization and the Memorandum of Cooperation between the state financial institutions for the development and support of exports of the BRICS member countries;
studying and using the experience of Russian and foreign development institutions by organizing events for the exchange of experience;
transferring the personnel management system to a single software platform.
In the field of development of information technology support for the bank's activities for the planned period, the plan should provide:
development of IT services required by the bank's business processes, in terms of their composition and level, determined by functionality, availability, capacity, security, continuity of IT services;
improvement of the bank's IT management system;
effective management of financial and human resources necessary for the provision of IT services and the functioning of the IT management system.
It should be noted that such a plan is not identical to the financial plan, as well as the bank's budget for the current year. The plan for implementing the development strategy also contains qualitative guidelines for the bank's activities, not excluding quantitative indicators of the balance sheet. The development strategy implementation plan is one of the mandatory issues of corporate governance and is an indicative planning document in the bank.
The strategy implementation plan for the current year is very closely intertwined with budgeting issues at the bank. In principle, one can also express the idea that such a plan also includes many budgeting issues in the context of strategic goals. At the same time, the plan does not fully reflect all issues of the bank's budget in the context of activities by departments.
It is impossible not to mention the fact that indicative planning, i.e. goal-setting planning based on key indicators (indicators), leads to a clear understanding by the bank's management of the goals that need to be achieved in the short term. Such planning allows you to choose the right and optimal methods to achieve your goals. It is also necessary to consider the dependence or influence of indicators of changes in the external environment (legislation, actions of competitors, the emergence of new technologies, customer base, etc.) and the internal environment of the bank (personnel, management organization, applied banking technologies, resources, etc.).
An assessment of indicators of changes in the external environment may look like this:
the bank purposefully increases its client base, while remaining focused on serving small enterprises in the real sector of the economy;
considers the competitive environment favorable from the point of view of the applicability of the norms of legislation;
systematically purchases equipment to improve the reliability of the bank's functioning as a credit institution;
notes the high difficulty in funding resources for development in the market.
Evaluation of indicators of changes in the internal environment of the bank may look like this:
the bank evaluates the existing team as a team of professionals capable of solving all the tasks;
improves corporate governance procedures, considering the current management system as optimal.
Overall rating:
indicators of the external environment are currently unfavorable for the bank in terms of funding resources, however, the accumulated resources of the bank make it possible to overcome these unfavorable moments for its development;
indicators of the internal and external environment of the bank are conditions or variables of the dynamic part of the development strategy in the context of the dependence of the bank's actions on indicators as a variational model of business development. In principle, even far from all the top 100 major banks include such indicators in their development strategies, since these indicators very often cannot be assessed due to both their qualitative nature and the unexpected appearance of new aspects of phenomena in the country's public life. It should be noted that the influence of indicators is one of the issues for self-assessment of corporate governance in commercial banks.

Example
Bank Strategy Implementation Plan for __year
1. On the strategic goals of the bank
The bank's development strategy involves strengthening and expanding the bank's position in the financial market in the following areas:
strengthening and expanding the bank's position in the financial market should be developed in accordance with the directions of its development strategy.
We need to develop our client base. For this you need:
1) organize prompt, high-quality, high-tech cash management services for customers that meet modern business development requirements;
2) create a mechanism that will attract and efficiently allocate funds and resources, which is able to provide a balance between such indicators as reliability, liquidity and profitability of assets;
3) create a mechanism that will facilitate the rapid search and financing of the most profitable production, trade and investment transactions and projects. At the same time, urgency, repayment and payment must be ensured;
4) provide effective support for the risk assessment and management system, an integrated management system that complies with the requirements of the current legislation and regulatory standards relating to the activities of the bank. This prevents the risk of unforeseen losses and does not damage his reputation;
implementation of internal control procedures.
Also, in order to expand the positions of the bank, it is necessary to carry out an internal control procedure. In order to achieve a more efficient functioning of the internal control system, it is necessary to carry out periodic checks of compliance by bank employees with regulations, current legislation, standards relating to professional activities, an appropriate level of reliability that corresponds to the nature of operations conducted in the bank, and minimizing the risks of its activities.
By conducting continuous monitoring, weaknesses in the internal control system can be quickly identified and corrected. The development strategy of the bank and its development prospects provide for a clear distribution of powers and responsibilities of each of its structural units responsible for conducting operations. In cases where the functions of departments intersect or the transaction poses a high risk, additional control should be carried out, a collegial decision should be made and a legal assessment of the operations and transactions conducted by the bank should be carried out;
implementation of internal control rules in order to counter the legalization of proceeds from crime and the financing of terrorism.
Expanding the client base by attracting new clients, whose activities at the initial stage of interaction with the bank are not sufficiently studied, increases the risk of using the bank's mechanism for the purposes of legalization (laundering) of proceeds from crime.
When expanding the client base and the proposed product range, the bank uses a special program for studying, identifying the client, as well as monitoring ongoing operations. The introduction of an automated banking system that provides for the functions of identifying a client, monitoring payments from the standpoint of identifying suspicious transactions or transactions subject to mandatory control, excludes the possibility of legalizing proceeds from crime through the bank's settlement tools.
Compliance with the adopted internal control procedures is carried out by employees of the relevant structural divisions of the bank at all levels of risk management in a preliminary, current and subsequent order through administrative and financial control.
2. About incentives for labor activity
Ensuring compliance of bank employees appointed to managerial and other positions, to which the current legislative and regulatory legal acts (including acts of the Bank of Russia) impose special requirements regarding education, qualifications, length of service and other aspects of their biographies, with these established requirements. Strict observance by all employees of the bank, regardless of their positions and official functions, of the corporate governance code, which contains the main provisions relating to the business culture of the bank.
In the near future, the goal of banking policy will be to improve personnel management with its subsequent maintenance at a modern level in order to solve the strategy of banking development.
The main direction of personnel policy consists of the following main points:
building relationships with the team on a long-term basis, directing funds and efforts to improve the personality of absolutely every employee with his subsequent consolidation in the team;
establishing a remuneration system that will adequately take into account the results and costs of the work of the team;
installations in relation to the staff of an effective financial policy, which will include social benefits and systems of non-material incentives for the process of labor activity;
the process of adaptation in the team of new employees, as well as the effective and timely implementation of recruitment;
improvement of the team;
improving and maintaining the qualifications of employees and managers;
development within the communication bank;
formation and subsequent maintenance of the banking corporate culture;
optimization of the socio-psychological situation;
creation of benefits and guarantees for personnel, which are provided for by the legislation of the Russian Federation.
Professionalism in the work of bank employees, based on the observance of business ethics and the principles of corporate culture, is perhaps the most important condition for the development of the bank.
3. On the competence of the banking board of directors
The bank's board of directors, as a rule, is responsible for the general management of the activity. Exceptions are issues related to the executive bodies of the bank and the competence of the general meeting of participants.
The exclusive competence of the banking board of directors in accordance with the charter includes:
creation of internal effective banking control with its subsequent functioning;
regular consideration at meetings of the board of directors of the bank of the organization of internal control and measures to increase its effectiveness, as well as their discussion with the competent executive bodies;
consideration of documentation on the implementation of the internal control system, which is prepared in advance by the executive banking bodies, the internal control service or the employee responsible for combating money laundering and the financing of terrorism, other structural banking divisions, the audit organization performing the audit;
taking measures that contribute to the active implementation by the executive banking bodies of the comments and instructions of the internal control service, supervisory authorities, and the audit organization conducting the audit;
conducting a timely check for compliance of internal control with the conditions and scale of banking activities when they change;
consideration with subsequent approval of the regulation on the banking internal control service, plans for the implementation of audits of the banking internal control service and reports and proposals for their implementation;
consideration of reports of the controller of banking activities in the securities market in the role of a professional participant;
approval of the appointment of a candidate for the position of the bank head of the internal control service;
making proposals for candidates whose appointment to positions requires approval from the Bank of Russia;
recommendations in resolving issues related to the reorganization of the bank, its conclusion of transactions, distribution of profits, participation in associations of commercial organizations and other priority areas of its activity;
recommendations on the amount of compensation payable remuneration to the bank auditor or members of the audit commission;
consideration of other issues that are not related to the exclusive competence of the general banking meeting of participants, as well as banking executive bodies.
4. On the banking development strategy
The basis for achieving the strategic goals set for the bank is institutional development. It should provide an infrastructure that meets the needs of the development and support of the business of the bank's clients.
The Bank solves the problems of creating risk management systems, management reporting systems, automated document management, personnel management and modernization of accounting systems. One of the main projects of the bank is the optimization of its organizational structure. Particular attention is paid to the system of control and risk management, without strengthening which it is impossible to create a large and sustainable financial institution.
Banking activity is formed on the basis of the following principles:
the first and main one is work that is within the limits of available resources. This is ensured by matching the nature of the bank's assets to the characteristics of the resources mobilized by it, ensuring a favorable match between the attracted resources and its own funds, as well as control over bank liquidity;
The second important principle is the economic viability on which banking activity is based, it implies economic banking responsibility for the results of its activities. This independence is expressed in the free disposal of one's own bank funds or borrowed resources, as well as the freedom to choose partners and clients. However, it should be noted that freedom of action implies strict compliance with the requirements of current legislation. The consequence of economic independence is economic responsibility. The Bank assumes the risk as a result of its operations, answering with all its property and funds for its obligations;
building mutual understanding with partners and clients on a mutually beneficial basis, while combining the client's interests with their own means, is the third principle;
The fourth principle of banking is that it is regulated.
The scope of banking activities is focused on all segments of the financial and banking services market in full compliance with the license. This provides:
reduction of possible risks due to the provided banking services and diversification of ongoing operations;
improvement and improvement of the quality level of banking services;
exclusion of a possible worsening of the situation for investors.
The main banking goals are considered to be:
provision by the bank of high-quality and comprehensive financial services to its customers;
creation of reliable guaranteed conditions for servicing customer operations;
introduction of new competitive banking technologies;
development of a stable client base with its subsequent expansion through involvement in customer service;
introduction of new products, as well as an increase in the range of banking services;
subsequent expansion of the statutory banking fund;
strengthening the financial position, as well as achieving profitability of ongoing operations with possible risk, but not higher than acceptable.
Thanks to banking development in these areas, the efficiency of its functioning will increase, the scope of activities will expand, mechanisms will be developed to respond to changes in the situation in the economy, and most importantly, a stable financial situation will be ensured.
The above promising areas of activity imply the achievement of the main goal - ensuring further growth of equity, including the bank's profit. In addition, successful work in these areas is a source of the bank's own development and progress.

Report on the implementation of the development strategy
Every six months, the Board of Directors approves a report on the implementation of the development strategy plan. It is also possible to consider the report in a shorter time, for example, once a quarter. Such a report contains a description of the main operations of the bank by line of business and the control figures for its financial planning. The report allows the board of directors to get an idea of the current state of affairs in the bank and, accordingly, those issues that need to be paid attention to due to insufficient efforts on the part of the executive bodies of its management.
The report can be built according to two main models:
1) thematic approach - blocks of questions in the main areas of the bank's activities. In this case, the report contains the main management indicators of the work of the bank and its structural divisions;
2) problematic approach - grouping on problematic issues of the bank's activities that require resolution and response from its board of directors in a strategic perspective.
If a thematic approach is applied, then it is advisable to include such areas as lending, the client base, currency control, operations with precious metals, interbank lending, bill transactions. Information for each area should provide the members of the board of directors with generalized information on indicators, without delving into unnecessary details. The report should not be of a formal nature, but should allow presenting a picture of the current state of affairs in the bank, being a management reporting document. We can say that it is the most important document of the bank's management reporting or management accounting information.
Management accounting information is financial and operational data on the types of activities and processes carried out in the bank, the functioning of its structural divisions, the products and services it produces, and the bank's customers. To date, there is no unambiguous definition of management accounting. There is no regulatory legal framework for management accounting. Sometimes, for simplicity, management accounting is limited only by the tasks of collecting, aggregating (grouping) information and generating management reporting, that is, creating an information environment for managers and managers who make management decisions.
Management reporting in the bank is aimed at additional disclosure of operational issues that require constant monitoring by the bank's management. In most Russian banks, it is in the nature of situational monitoring, rather than reporting on an ongoing basis. At the same time, it should be noted that a number of parameters of such reporting are mandatory, including documents of the internal control service, the responsible AML/CFT officer.
An important issue is that the board of directors should always have an idea in the short term about the implementation of the strategic goals of the bank's development. The issue of such informing is decisive for the performance of the functions of control over the activities of management bodies. The board of directors should always have a comprehensive understanding of the situation in the bank, both in general in the form of a perspective, and on individual development issues. Thus, the board of directors must always be aware of what is happening in the organization in order to make strategic decisions on the management of the bank's business.
Ordinance of the Central Bank of the Russian Federation dated April 30, 2008 No. 2005-U “On assessing the economic situation of banks” refers to the strategic risk issues of control over the bank's development strategy by the board of directors. The Bank of Russia considers such control in this case as mandatory. The very nature of the assessment questions of this instruction indicates a certain focus of the regulator on increasing the responsibility of banks in monitoring the implementation of their own development strategies and excludes, to some extent, a formal approach to business.
Along with management and financial statements The Bank's report on the implementation of the development strategy should contain an analysis of the achievement of a number of summarizing indicators that comprehensively cover its progress. Such a mechanism is created on the basis of the balanced scorecard (BSC) widely used in modern practice of strategic management, which includes the following elements:
a strategic map of the bank and strategic maps of independent structural units. The strategic map visualizes the strategy in terms of goals and main areas of activity, united by cause-and-effect relationships;
a system of balanced financial and non-financial key performance indicators (KPIs) characterizing the strategic goals of the bank;
a portfolio of strategic initiatives needed to implement the strategy;
the bank's strategic budget, which is an integral part of its budget and includes the costs of implementing the bank's programs and projects aimed at achieving strategic goals.
An integral indicator of the implementation of the development strategy is the bank's competitiveness. It is assessed by building a dynamic model of competitiveness that reflects the dynamics of the integral indicator during the analyzed period.
Assessment of the competitiveness of a commercial bank includes building a model of its activities and a model for assessing the level of its competitiveness. The developed dynamic simulation model for assessing the level of competitiveness of a bank makes it possible to determine the values of the main financial and economic indicators in future periods that characterize the efficiency of the bank's financial activities, analyze the level of its competitiveness, changing its main components, and also helps to improve the efficiency of bank management.
A dynamic model consists of a set of interrelated elements that are included in the model as variables. The main component of the dynamic simulation model of KB is profit.
To assess the competitiveness of design bureaus, the following indicators are defined:
the level of competitiveness of the service;
the level of credit risk;
banking risk index.
The developed model allows to determine the level of competitiveness of the bank in general; for a more accurate assessment, it is necessary to introduce additional parameters that characterize the bank's competitiveness. The results obtained will allow its management to more accurately develop a development strategy, taking into account its competitiveness.
Based on the calculation of the level of competitiveness and the identification of factors, the bank's management can determine its competitive advantages and determine the prospects for business development.
Further research into assessing the level of competitiveness should be directed, on the one hand, to the development of a mechanism for assessing competitiveness, which will allow, based on the existing stages of assessment and appropriate analysis methods, to develop management decisions to increase the level of competitiveness of the bank, and on the other hand, to develop an information and analytical assessment system competitiveness of the bank, will reduce the loss of information between different levels of management and will contribute to the adoption of sound, operational management decisions.

Example

Report (every six months) on the implementation of the plan for implementing the bank's development strategy for __ years
As of ___ _____ 20___, the bank's assets amounted to ___ thousand rubles. Net loan debt reached ___ thousand rubles. Profit based on the results for the 1st half of 20__ amounted to __ thousand rubles. Client funds as of 01 __ 20__ reached ___ thousand rubles.

Authorized capital
In the 1st half of 20___, the authorized capital of the bank did not increase and amounted to ______ rubles.

Interbank lending
Permanent counterparties for interbank lending are ___ banks, among which are the leading Russian banks. According to the results of the first half of 20____, the turnover on interbank loans averaged ____ billion rubles monthly. Placed at a maximum in ____ 20___ ___ million rubles, attraction in ___ 20___ at a maximum of ____ million rubles. Banknote operations are actively developing.

Currency control
On average, in the first half of 20___, ____ transaction passports were serviced by the bank, transfers abroad in dollars - an average of ___ million dollars per month, at a maximum in ____ 20___ in the amount of ____ thousand US dollars. Transfers in euros are insignificant, maximum ____ euros in February 20____.

Bill transactions
On average, monthly in the 1st half of 20___, the bank issued ____ own bills of exchange in the amount of ____ million rubles monthly. Operations with third-party promissory notes amounted to an average of ____ million rubles per month. Principal issuers of discounted bills _____.

Client base
Client account balances tend to increase. In the first half of 20___, debit turnovers on customer accounts on average amounted to more than ____ billion rubles on a monthly basis. The client base is stable. On average, ___ accounts were opened monthly.

Lending
On average, it was credited monthly in the 1st half of 20___ to ___ clients. Loan debt amounted to ___ million rubles. The enterprises of the Moscow region are credited.

The future is strategic audit
More broadly, the question is whether the mission of the bank as a credit institution is being realized in principle. For such an assessment, it is necessary to conduct a strategic audit as an assessment of the entire bank, taking into account the external environment. A strategic audit is about as difficult an assessment as the effectiveness of a bank's business processes.
Standard internal control services are unable to conduct such an assessment due to the lack of the necessary qualifications and managerial experience. The internal control services, as part of the internal control of banks, usually evaluate banking operations only from the point of view of their compliance with the regulatory documents of the Bank of Russia.
Probably, to conduct a strategic audit, it is advisable to form a temporary working group based on the decision of the board of directors. The time interval for such an audit is one year; the report on the results of the strategic audit is approved by the board of directors. Such a report would allow for a comprehensive assessment of the strategic vision of the bank's place as part of the Russian banking system.
The form of the report, as a proposed questionnaire, is also subject to approval by the board of directors of the bank. It would probably be right to develop a separate regulation on strategic audit in the bank, and it would hardly be reasonable to include strategic audit in the audits of the bank's internal control service. Members of the working group must have the necessary access to all internal documentation of the bank for reliable conclusions about its activities. It would be expedient to determine the working time of such a working group in the range of 15-30 calendar days.
It should be noted that the concept of strategic audit is absent in the regulatory documents of the Central Bank of the Russian Federation, barely touching on the procedures for implementing the bank's development strategy. And in the near future the Bank of Russia does not intend to pay close attention to this issue. Recommendations in the form of a questionnaire are also absent from the side of the regulator, the recommendations relate only to the development of a bank development strategy and its content. So far, the Central Bank of the Russian Federation is aimed at developing business planning as part of ongoing financial planning.

***
Thus, we reviewed the main procedures for monitoring the implementation of the bank's development strategy and provided practical forms of this procedure. We hope that in the future banks will pay closer attention to this issue, albeit with a certain degree of formality. Unfortunately, we emphasize once again that the Bank of Russia treats these problems as insignificant.
Ordinance No. 2005-U regarding the assessment of strategic risk requires the bank to exercise such control. However, this applies only to strategic risk, and nothing more. On a permanent basis, the regulator does not require banks to carry out such monitoring, applying more “heavy” criteria for evaluating banks by its supervisory block.

World Bank Strategy for Russian Federation. Implementation progress report

Progress Report on the Implementation of the Strategy for the World Bank Group in the Russian Federation

Applications in English:

SUMMARY

i. Over the past 12 months, the Russian economy has consolidated its impressive recovery from the August 1998 financial crisis. At the same time, Russia has made progress in creating conditions for political stabilization conducive to longer-term structural reforms. This Progress Report on the Implementation of the December 1999 Joint Strategy for the Bank and IFC in the Russian Federation reflects these processes, which enable the Bank to carefully and gradually change its activities towards greater flexibility in the assistance program. The new strategy for the Russian Federation will be presented to the World Bank's Board of Executive Directors by the end of 2001. By that time, it is expected that more experience with reforms will have been accumulated, on the basis of which a decision will be made on further development assistance programs from the Bank Group.

ii. Positive developments in Russia in recent times - especially the increase in economic and political stability - as well as the adoption by the country of its own program economic reforms coupled with a significant improvement in the performance of projects supported by the Bank Group, provide the basis for the revitalization of the Bank Group's operations in Russia in comparison with the post-crisis period after August 1998. Although many challenges remain in Russia, it has (albeit slowly and with some notable exceptions, such as in the financial sector) made impressive progress in most areas that the Bank believes are critical to sustainable growth. In general, the program of the Government of the Russian Federation is a good basis for the implementation of structural reforms, which in the future will ensure the resumption of sustainable growth and poverty reduction.

iii. The main focus of the Bank Group's current strategy, as described in CAS-99, remains in place despite major changes in the operating environment. The agenda of the Bank Group will continue to focus on systemic and institutional reforms and appropriate actions at the regional and local levels in order to develop a common dialogue on economic policy and promoting the formation of sound economic policy frameworks at the federal, regional and local levels. Within this framework, the focus will continue to be on strengthening institutions and public sector accountability, further enterprise restructuring, improving investment climate and strengthening social protection population. If much of the IBRD's assistance is directed towards improving general economic conditions and government institutions, then the IFC will complement this work by providing direct assistance to the real sector. Such synergies are particularly important in terms of contributing to a more favorable investment climate.

iv. This report describes the change in the criteria for scaling up financial support for Russia from the World Bank. Since the most important reforms previously agreed under the canceled SAL-3 loan are now included in the program of the Russian Government, the relevant conditions that related to the implementation of the SAL-3 loan are now formulated as conditions related to the implementation of the program of the Russian Government, which expands the basis for assessing progress. Similarly, a central element of the Bank's assistance work further implementation structural reforms is now the very program of the Government of the Russian Federation. The Bank will monitor its implementation and may provide a Structural Adjustment Loan to support the program, depending on financing needs and implementation of reforms.