The Management Pattern of Financial Institution

The nature and the structure of the financial institutions may be different in each institution, because the financial institutions may be of various types. The management aspects of these institutions may be different according to the provision of law. Therefore, the structure of the management of the financial institution is described hereinbelow:

1. General Meeting

Any financial institution has a general meeting. The general meeting is the most powerful body of a financial institution. Hence, the general meeting is the supreme body of any financial institution. It determines policies, increases or decreases capital, removes and ads the objective of the institution. Including the election of directors, only this body has the right to do so. Such right is not provided to any authority of this institution. The board of directors should discharge the function within the power delegated by the general meeting.

2. Board of  Directors

There is a board of directors in each financial institution. This body gives aliveness to the institution. The board of directors of a financial institution is the second powerful body. The board of directors is an unavoidable body of each institution. Any institution cannot be operated without the formation and management of a board of directors. so, the power and right to the general management of the institution are vested on the BODs within the current law. Some financial institutions are formed under special acts and rules and some are formed based on articles of association and articles of the memorandum and other necessary documents. It depends on the nature and objective of the financial institution. In some financial institutions, there are persons appointed by the government and institutions in the BODs.

3. Chairman or General Manager of Financial Institution

Some financial institutions have a chairman; some financial institutions have a general manager. Who is the head of the institution, whatever it is, there is no controversy that there is a chairman or a general manager in any financial institution. Moreover, if there is the provision of the General Manager in the act and regulation accordingly, he is appointed and if there is the provision of the Chairman in the act, rules, memorandum, and articles of association, accordingly he/she is appointed. Their functions, rights, and duties are fixed by the financial institution or they cannot function or use their right over the right given and the objective of the institution. The other employees of the institution should do their work under their direction.

4. Officials Who operate the Financial Institutions

A financial institution itself can do nothing because it exists and burns by the law or in other words, it is a legal person. There are two bodies of general meetings and the BODs to operate it. These are too created by law. These bodies themselves do nothing. The persons who operate the financial institutions are natural persons. Some of these persons are appointed by the government, some are appointed by the general meeting and by the BODs and the Chairman or General Manager and the Executive Manager appointed the employees of the institution. In fact, the functions, duty, right, and liability are defined by these persons because the institution itself does nothing. nd the operation of the institution is done by the high post holders and the small officials. The persons do the work of ruining or building the institution.

5. Department and Sections

There is no dispute that financial institutions may have many departments and sections for the purpose of running and exiting the institution. We can see so many departments and sections in the financial institutions because these organs help to make the functions of the institutions. We cannot imagine that without making and forming these types of departments and sections by the institutions to run the organization smoothly and systematically. The division of the work and other necessary things can be done through these organs. Hence, the departments and sections are too included in the management patterns of the financial institutions.