MECHANISMS OF COMMERCIAL BANK FINANCIAL MANAGEMENT

Abstract. The article examines the main financial management mechanisms of a commercial bank, as well as the prospect of creating a modern financial mechanism. The article analyzes the approach to the definition of the term "finances" and the focus of management on the placement of financial resources to obtain income. Emphasis is placed on the importance of productive financial relations between the bank and clients through financial management. The role of elements of planning, operational management and controlling in the creation of modern financial management methods is also considered. The stability of the banking sector largely determines the stability of the economy in general and its successful development. Therefore, the primary task of state bodies at the macro level and the management of credit organizations at the micro level should be to ensure such stability through the implementation of a rational monetary policy; assessment and monitoring of the state of the real and financial sectors of the economy; the fall of all types of risks and the acquisition of income, which multiplied aggregate costs. All this will contribute to the modernization and improvement of the quality of banking services provided to individuals and legal entities. An unreasonable and hasty policy in the field of banking business will not only lead to a decline in the financial stability of credit organizations, but will affect the economy as a whole. The article analyzes the financial management of foreign banking organizations, as a result of which the author came to the conclusion that the most important indicators in the development of a bank's financial strategy are the value of a financial organization, the level of bank capital, a certain number of active innovative projects, an increase in the range of products and services provided by banks, an increase management of external and internal risks, as well as development of an effective investment policy. As a result of the study, the relationship between effective financial management and a high level of liquidity management of the bank and the adequacy of its capital was revealed. The theoretical recommendations made by the author can be used by bank managers during the development of tactical measures aimed at increasing the financial stability of the credit organization, as well as during the clarification of the bank's development strategy in the phases of economic growth and decline in the interests of owners and other economic entities that enter into financial relations with banks

The Impact of Knowledge Management on Organizational Innovation

CC BY-NC 4.0Every organization wants to create unique products and services, but not all organizations achieve this. Those that successfully offer exceptional products and services thanks to better execution processes can be called innovative organizations. However, the desire to be an innovative organization alone is not enough, organizations need to develop new processes in order to be successful and to properly manage the knowledge of the organization. This article analyzes the impact of knowledge management on organizational innovation, and presents the research conducted in Lithuania. Many researchers see a positive impact on organizational innovation, as knowledge management practices that prioritize the generation of new knowledge and learning at the organizational level are important for achieving positive results in innovation. Thus, knowledge generation has a positive correlation with organizational innovation creation, but some researchers, e.g. Donate and de Pablo (2015) consider this relationship to be indirect. The results of a study by Lee, Leon, Hew, and Ooi (2013) revealed that knowledge acquisition is not strongly related to an organization’s technology innovation process. Capon, Farley, Lehmann, and Hulbert (1992) argue that the acquisition of knowledge does not affect an organization’s ability to innovate. However, there are other studies, e.g. Darroc and McNaughton (2002) and Tan and Nasurdin (2011) argue that knowledge acquisition strongly influences the process of technological innovation. The aim of this article is to determine whether this impact is direct or indirect, not only to limit technological innovations, and to determine which trends are typical for Lithuanian organizations

Assumptions of Corporate Social Responsibility as Competitiveness Factor

The purpose of this study was to examine the assumptions of corporate social responsibility (CSR) as competitiveness factor in economic downturn. Findings indicate that factors affecting the quality of the micro-economic business environment, i.e., the sophistication of enterprise’s strategy and management processes, the quality of the human capital resources, the increase of product / service demand, the development of related and supporting sectors and the efficiency of natural resources, and competitive capacities of enterprise impact competitiveness at a micro-level. The outcomes suggest that the implementation of CSR elements, i.e., economic, environmental and social responsibilities, gives good opportunities to increase business competitiveness

Expression of the impact of social business on the economy in Lithuania

Research background: Social business solves problems that cannot be solved by traditional businesses, government agencies, and traditional non-governmental organizations. The secrecy and uniqueness of social business in solving the most sensitive problems of society, being able to survive independently and ensure the continuity of activities gives this form of activity an advantage and determines its growing popularity. Such businesses are based on the laws of the market, use effective ways based on proven business principles to meet social needs and solve existing societal problems. Purpose of the article: The aim of the article is to substantiate the impact of social business on the country’s economy, which allows to calculate the benefits of social business according to the established criteria. Methods: The benefits for social business were assessed using social performance and impact assessment studies, which assessed changes in key areas such as: change in income, change in housing, change in criminal activity, change in health, and change in income. The benefit-cost ratio and return of social business was determined by conducting the following studies: evaluation of the results of work in a social enterprise using two questionnaires, evaluation of the impact of work in a social enterprise using two research groups and two questionnaires. Findings & value added: The significant positive increase in gross income and labour income over the last month, as well as the number of avoided arrests and changes in stable housing and reduced number of persons counseled on alcohol and drug addiction, led to a positive current net benefit per person employed in the social enterprise for all groups. It amounts to EUR 1.63 per year, with a return of EUR 0.63 per euro spent on social enterprise support

Expression of the impact of social business on the economy in Lithuania

Research background: Social business solves problems that cannot be solved by traditional businesses, government agencies, and traditional non-governmental organizations. The secrecy and uniqueness of social business in solving the most sensitive problems of society, being able to survive independently and ensure the continuity of activities gives this form of activity an advantage and determines its growing popularity. Such businesses are based on the laws of the market, use effective ways based on proven business principles to meet social needs and solve existing societal problems. Purpose of the article: The aim of the article is to substantiate the impact of social business on the country’s economy, which allows to calculate the benefits of social business according to the established criteria. Methods: The benefits for social business were assessed using social performance and impact assessment studies, which assessed changes in key areas such as: change in income, change in housing, change in criminal activity, change in health, and change in income. The benefit-cost ratio and return of social business was determined by conducting the following studies: evaluation of the results of work in a social enterprise using two questionnaires, evaluation of the impact of work in a social enterprise using two research groups and two questionnaires. Findings & value added: The significant positive increase in gross income and labour income over the last month, as well as the number of avoided arrests and changes in stable housing and reduced number of persons counseled on alcohol and drug addiction, led to a positive current net benefit per person employed in the social enterprise for all groups. It amounts to EUR 1.63 per year, with a return of EUR 0.63 per euro spent on social enterprise support

Assessment of investment in higher education: state approach

By assessing what damage and benefits experience the state when investing in higher education, is faced with the following problems: the lack of data, the delay of data. Therefore, the state attitude to persons with higher education is very important, because the state for some people pays a part for their studies, and for part of them organizes the same system work. There should be a clear state approach to investment losses due to immigrants with higher education. Problem Statement - Is the state's investment in higher education useful? Personal factors include personal human qualities, attitudes, beliefs, norms, motivation, skills, knowledge, habits and routines. The research was carried out for public funds invested in higher education, loss due to emigration, showed that every year the state is losing its invested more money into the education system because of the “brain leakage.” The study showed that for the state is more worthwhile to subsidize university education than college studies.Lithuania, having a formed knowledge evaluation culture, insufficient uses its knowledge resources - people, education systems, scientists, businessmen and etc., resulting the loss of the ability to compete internationally and with potential economic and revenue growth opportunities

Comparison of Lithuanian, Italian and British social business models

Daily life in the world is accompanied by a variety of global social problems such as discrimination, ignorance, suicides, poverty, hun- ger, environmental pollution and several others frequently caused by human beings. These have been particularly exacerbated by the recent and arguably ongoing economic crisis. Traditional global mar- ket makers and participants are gradually getting involved in the creation of social welfare while acting in a socially responsible manner, however, such actions are often led by a certain “fashion” or public pressure. Social entrepre neurship is cited as one of those alternatives. This business model is driven by the desire to have so- cial impact, it is one of the main tools being used as a response to fight against growing social exclusion and unemployment, dealing with sensitive regional problems. According to European Commis- sion, one of four start-ups each year is a social business company. It is being championed as a new opportunity to reduce inequality and exclusion so as to encourage econ omic growth. However, although social entrepreneurship has won the attention of scientists, its in- consistent theoretical basis and very limited perception are widely argued. It is claimed that poor pe rception of the social business mo- del is a major barrier to the development of such entrepreneurship in Europe. Lithuania is mentioned as one of seven countries where social entrepreneurship development lags behind and, therefore, is not involved in most of comparative reports of European countries. Accordingly, a lack of concrete data about this business model deve- lopment and perception in Lithuania and its comparability with other countries is noted. The main object – Lithuanian, Italian and British social business models. .The aim of article – compared Lithuanian, Italian and British social business models. The main results of study. [...

Analysis and perspectives of the level of enterprises digitalization (Lithuanian manufacturing sector case)

The impact of technological advances in all industry sectors is being felt and, thus, there is no doubt that digital transformation will have significantly affect Lithuanian manufacturing sector. In order to assess the extent to which Lithuanian processing industry companies are digitalized, an in-depth descriptive analysis of installed digital technologies in these companies was executed.  The goal of this analysis – to determine whether Lithuanian companies of processing industry has been sufficiently digitalized and are ready to completely adopt the principles of Industry 4.0 in the installation of digital solutions within all segments of the value-chain creation. The research on already-applied digital tools and technologies in those companies was made during the phase of analysis.  There was also an attempt to define the most digitalized processes of operation and the least or non-digitalized processes of operations in those companies. After the assessment of a current digitalization level in the company was made,  there was an attempt to clarify the strengths and problematic challenges as well as the underlying reasons for its challenges. After the above-mentioned data was collected, recommendations on which additional tools and means to apply in order to encourage the process of digitalization in the companies were formulated and passed on to the companies