Banking Affairs and Developing Corporate Leaderships

No bank may survive without Corporate Support. The growing market oriented economy, digitization, globalization, liberalization, privatization, 24X7 efficiency and glocal model is rapidly transforming Corporate Governance in the banking system. In the banking sector the most followed Corporate Governance Structure has already collapsed everywhere but India is still following the obsolete style that has no in build capacity to develop the Corporate Leaders. As a results many banks facing the ultimate survival threat: a total collapse..

The Banking is not at all only monetary affairs. Fundamentally it’s dealing with the specific publics who trust a bank for safekeeping their financial assets and getting them back wherever and whenever they need. No doubt the banks play a very important role in the economic life of a country. If we wish to strengthen our economy, we will have to manage our banks very efficiently. Thus the soundness of any banking system depends on the corporate participants who are supposed to be accountable for the various performances. Hence the Corporate Governance of the banks cannot be ignored.

Since the Corporate Governance is an internal mechanism in the banks, it’s held absolutely responsible for building the image, reputation, confidence and long term relationships with the customers and all sorts of stakeholders apart from the normal banking operations. As a Public Relations Management Professional I feel that the baking system should also upgrade its Corporate Governance by developing the corporate leadership within the system in such a manner that may transform the entire work culture to suit the rapidly changing banking style of the society. Currently 83% of the banking staff is unaware of the ongoing and the future corporate challenges that may adversely hit most of the banks if they fail to upgrade.

Unfortunately most of our banks operate in such a traditional and obsolete manner that is of no use to the clients. What they consider important in the Corporate Governance is only related to their Boards, their Committees, the concerning Boards and Official Meetings, their legal disclosure and transparency, etc.

Despite 24X7 available online transactions, funds transfers, ATM operations and global existence hardly any bank have developed a system to regularly help, trouble shoot, assist, monitor or organize interaction with the clients. The banking staff also suffer this mismanagement as clients.

The baking system understands only the company laws and the corporate handbooks in this matter. They follow only what is mandated. They don’t try to reform unless there is some written instruction, although no banking law force them NOT to develop the Corporate Leaderships as an internal practice.

No bank may survive without Corporate Support. The growing market oriented economy, digitization, globalization, liberalization, privatization, 24X7 efficiency and glocal model is rapidly transforming Corporate Governance in the banking system. In the banking sector the most followed Corporate Governance Structure has already collapsed everywhere but India is still following the obsolete style that has no in build capacity to develop the Corporate Leaders. As a results many banks facing the ultimate survival threat: a total collapse..

It’s an established fact that no bank may survive without good Corporate Governance at all. Without functional transparency, client oriented operations, collective sensibility and accountability towards every stakeholder, no bank may attain the market confidence. And without this confidence no bank would ever grow.

The Corporate Governance not only include the structures, processes, cultures and systems that engender the successful operation of organizations but the public relations as well. The bankers must understand that the banking systems are not just their staff, rule books, passbooks, check books, ATM, offices, promotions, advertisements and the hi-fi location & appearance of the building. It’s much more than this. It’s the way banking staff behaves, superiors behave and connect to all sorts of the big and small clients.

It’s practically impossible to make a bank more successful by just changing its structure. Beyond doubt a poor corporate leadership may eventually lead to bank failure. It may result into disastrous & irreparable consequences impacting the deposits and reputation. It may cause credibility collapse and remarkable loss of clients’ confidence. No bank can reemerge from such disaster.

Control : We may easily develop a better corporate leadership by adopting region specific corporate and public relations strategies and setting clear cut time bound objectives for every member of the team. Such arrangements should be incentive based and communicated throughout the banking organization so that every contributing member know the responsibilities and the rewards. Every member should know their role in this exercise and the supervising officers must know and cross check, how a particular team is performing or lagging behind others.

Every bank has specific ethical values, objectives, strategy and control environment. The management should clearly understand, what is required from the which team. Such efforts should not only be focused to achieve and maintain the public and corporate confidence in the banking system, but also within the fabric of the bank. Any bank may not sail long with a poor corporate leadership, which could inevitably trigger a major bank run or liquidity crisis.

Without proper training, timely updates, rewards and incentives to the best performers, the structuring a strategic plan to attain the desired goals within a time frame is impossible. Without clearly designated, briefed and rehearsed roles and powers of the participating members, no bank may keep standing as a winner.

Therefore, the foremost requirement of developing a good corporate leadership hierarchy for the banks, is the clear identification of powers, roles, responsibilities and accountability of everyone. These roles and responsibilities should be invariably well documented. Every participant member of the bank should be encouraged to take independent judgment.

About Ashok Kumar Sharma

5 National, 3 State Awards. PR, MarCom, Lobby, & Content. Expert.Faculty.29 Best Sellers. Chairman prsilucknow.in.Chief Strategist digitalcafe.in

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