home Walls Internal structural divisions of the bank. Transformation of branches into operational offices: problems and solutions Let's build ourselves “by growth”

Internal structural divisions of the bank. Transformation of branches into operational offices: problems and solutions Let's build ourselves “by growth”

The head office of Alfa-Bank is located in Moscow; in total, 511 branches and branches of the bank have been opened in the regions of Russia and abroad. One of the largest subdivisions is the "Nizhny Novgorod" branch of OJSC "Alfa-Bank", which also includes subdivisions located in the territory of Udmurtia.

OJSC "Alfa-Bank" in the territory of Udmurtia is represented by the following divisions:

Credit and cash office "Rodnik" (Izhevsk, Sovetskaya st., 13);

Operational office "Izhevsky" of the branch "Nizhny Novgorod" (Izhevsk, Sovetskaya st., 13);

Credit and cash office "Izhevsk-Ustinovsky" (Izhevsk, Molodezhnaya st., 87);

Operational office "Italmas" branch "Nizhny Novgorod" (Izhevsk, Molodezhnaya street, 87);

Credit and cash office "Izhevsk-Deryabinsky" (Izhevsk, Pushkinskaya st., 216).

Operational office "Izhevsky" of the branch "Nizhny Novgorod" was established on 22.11.2010. It currently has 17 employees. The organizational structure of the Izhevsk office of Alfa-Bank OJSC is shown in Figure 1.

Figure 1 - Organizational structure of the operational office "Izhevsky" of OJSC "Alfa-Bank"

The office manager directly manages all the sectors that exist in the office, united in blocks, under his leadership there is also a deputy office manager and a senior cash clerk (SOCR).

The deputy manager of the department controls and coordinates the work of the entire team (except for the manager), holds morning meetings every day, helps employees, can perform all types of work for employees, resolves conflicts and disputes, etc. When there is no manager, he performs his duties. The following employees are under his direct supervision:

Service administrator. Its functions include:

Client meeting

Identification of the primary needs of the client

Working with a queue

Transfer of the client to a specialist or manager-consultant

Direction of the client to ATMs and assistance in working with them

Assistance in filling out the questionnaire and the Western Union transfer form

The functions of credit officers include:

Conducting a credit interview with a potential client of the Bank;

Collection and verification of documents, as well as information declared by a potential client.

Conducting an assessment of the solvency of a potential client, as well as his application for a loan;

Making a credit decision;

Preparation of documents for granting a loan or refusing to grant a loan;

Attracting potential investors;

Registration of documents on the deposit.

Consulting manager:

Presentation and sales of Alfa-Bank products

Consultations (on loans, on tariff plans, etc.)

Transactions

Assistance in filling out forms for opening tariff plans, for a loan

Investment Advisor:

Advice on deposits, deposits, mutual funds (PIFs), etc.

Presentations

Making deals, etc.

The Senior Cashier (SOCR) organizes the work of settlement and cash services for clients, including accounting, sells standard banking products to clients, and builds an effective scheme for operational customer service.

Cashier functions include:

Carrying out cash transactions of CB;

Collection;

Periodic reporting on cash transactions.

The functions of an accountant include bookkeeping. accounting of on-farm operations, accounting of income, expenses, financial result, fixed assets, property and MC, receivables and payables, preparation of reports, daily follow-up control of office operations.

The social structure of the personnel of the operational office "Izhevsky" of OJSC "Alfa-Bank" for 2013 is presented in table 3.

Table 3 - Social structure of the staff of the Izhevsky office of Alfa-Bank OJSC for 2013

characteristic element	Number of people	Specific weight, %
Number of employees, including:
Management staff
Specialists
support staff

From 18 - 25 years old
From 25 - 40 years old
From 40 - 55 years old

Education:
Average
Primary vocational
Secondary vocational
Higher professional

Men
Women
Work experience in banking
From 1-3 years
From 3 - to 7 years
7 to 10 years

To carry out its activities, the operating office "Izhevsk" of OJSC "Alfa-Bank" has qualified personnel with sufficient work experience and level of education. An analysis of the movement of personnel of the operational office "Izhevsk" of OJSC "Alfa-Bank" is presented in table 4.

Table 4 - The movement of the personnel of the operational office "Izhevsky" of OJSC "Alfa-Bank" for 2012-2013

It can be noted that, in the operating office "Izhevsk" of OJSC "Alfa-Bank", there are sufficiently low turnover rates, which is explained by the ongoing personnel policy, working conditions and the existing wage system.

There are many worrying moments in the current state of the Russian banking system. This is both the excessive enlargement of the main players and the desire to leave the market of large foreign bankers. And the total number of banks in Russia is declining. But the remaining players have relied on development and are gradually increasing their presence in the regions.

The professional banking resource Bankir.ru conducted a study among Russian bankers on the principles of development of territorial networks of banks. In their opinion, the industry is returning to a stage of active growth. Reviving retail banking requires expansion. Credit organizations today need personnel, space, real estate. Everyone has different strategies for building a branch network - from aggressive to conservative. However, it is obvious to the market that the banks have set their sights on growth and the capture of new territories.

Where to go

Among the most active players are representatives of the largest Russian state-owned banks and regional bankers who are not ready to give up their positions in the local markets they know well. For example, Vyacheslav Vorobyov, Deputy President - Chairman of the Board, Director of the VTB24 network department, said: “In 2010, we opened 55 offices, 90% of them in large cities with a population of more than 500,000 people.” The size of VTB24's sales network in the most capacious, Moscow, market has reached 90 offices. The largest increase in the VTB24 network in 2010 was in Moscow, where the bank opened 13 offices. There are five offices in St. Petersburg. Four offices each in Yekaterinburg, Samara, Chelyabinsk. “As of the beginning of this year, we have 530 branches in 203 cities,” said V. Vorobyov. “Now our services are available to 71% of the urban population of Russia in 69 regions.” This year VTB24 has grandiose plans - to open 70 points of sale.

Among the energetic regionals is Express-Volga bank. At the end of last year, the number of its branches doubled - from 30 to 60, and in the first half of this year, the target was announced - 100 branches. Another regional SKB-Bank has achieved nationwide coverage. To date, SKB-Bank is present in 96 cities of Russia in 35 subjects of the Federation. The new network expansion strategy has also been adopted by Pervobank. Today it serves clients in 33 offices in nine Russian cities: in Samara and the Samara region, Moscow, St. Petersburg, Ulyanovsk, Orenburg and Tarko-Sale (Yamalo-Nenets Autonomous Okrug).

It is also worth noting Metkombank, OTP Bank, First Republican Bank, Moscow Renaissance Credit.

Bank office development strategies depend on the “origin” of banks. As a rule, regional credit organizations first develop within their own region, and then spread their expansion to neighboring regions, focusing primarily on regional capitals, and then on large cities. Large banks, which form their strategies from Moscow, immediately focus on million-plus cities, and subsequently on the periphery.

The paradox of development: the presence of the economic potential of the region, and not the presence / absence of banking services, becomes a priority in choosing a direction for all players. That is, bankers are ready to compete with each other for an economically active region, and not build new areas with undeveloped infrastructure.

Many bankers agree with this opinion. For example, according to Oleg Shemyakov, head of the marketing department at Interkommerts Bank, the bank is not very interested in regions with low development of banking services. After all, the payback period of a branch in underdeveloped regions often stretches for several years.

Another important development factor is the presence of strong managers in the region. Priority is given to regions with well-developed specialized higher education.

In terms of the number of bank offices, the leaders are the Central and Volga Federal Districts. Based on banking strategies, it is unlikely that rapid development should be expected in the most backward North Caucasian and Far Eastern districts. The Siberian, Urals, Southern and Northwestern federal districts look more promising.

What departments are needed

Bankers again start not from market expectations, but from their own development strategy. Large banks prefer to open regular branches. This allows you to be closer to the client.

Regional banks work more directed. For example, Svyaz-Bank is increasing the number of points of sale in order to be closer to individual customers.

VTB24 is expanding its network for the same reasons. In all regions where VTB24 operates, "large formats" are already open. There are 120,000-140,000 inhabitants per one sales office. This is much better than three years ago. Now the benchmark is taken to a high network density in cities with high potential. If necessary, VTB24 creates additional backup points in areas where a large client base has already been formed, and the existing office is overloaded. The main formats opened in the last two years are standard departments with four to six workplaces, with an area of 150-250 sq. m. At the same time, the format of a standard branch has changed significantly: the client area and the 7 x 24 area have expanded, the number of ATMs has increased markedly.

Banks of medium size use all network formats, based on business objectives in a given territory, development prospects and achieved results. For example, PRB bank began to develop a regional network by opening full-fledged branches. In the process of development, efficient and successful branches were supplemented by a network of branches, and inefficient ones were transformed into "lightweight business formats" - operational offices. Bank Express-Volga believes that the format of a classic additional office is optimal. The same format is called the most promising in VUZ-bank, Chelyabinvestbank. SKB-Bank also considers an operational office to be a quite suitable format. Primsotsbank prioritizes additional office and branch.

Binbank advocates a more flexible approach: a reasonable compromise is needed in building the network. It all depends on the specific goals. If the goal is to expand the network in the same city or subject of the Russian Federation, then an additional office. If the goal is to enter new subjects of the Russian Federation, then through a representative office, which will subsequently grow into either a branch or an operational office.

However, today the undisputed leader among all banking formats are additional offices, in second place are operating cash desks. Meanwhile, it is in these segments that the last six months there has been a drop in the number. At the same time, the number of credit and cash offices and operational offices is growing.

What if the calculation is not justified?

The open banking division falls short of the required level of efficiency. What to do? Firstly, it can be closed (however, bankers use this method less and less), secondly, it can be sold, and thirdly (by the way, this method is now the most relevant), the unit is either transferred or restarted in the same or another format . It happens that the point is ineffective for a long period, and all methods of business development do not work in it. In this case, the PRB, for example, tries to improve the economy by adjusting costs to the size of the business, changing the format of the territorial division (branch becomes an operating office, CCO, etc.). The last step is when bankers close inefficient divisions.

The stories are known not of closing, but of transferring the division, dictated by the development of the banking business in a particular region. For example, the BKF bank closed a branch in Krasnoyarsk last year, but opened it in Novosibirsk.

There are also more optimistic tasks: the existing outlet is temporarily closed in order to be reformatted into the next format in the hierarchy. Such a story is remembered in SKB-Bank: in Krasnoyarsk, the representative office was transformed into an operational office. Representative offices have fewer powers and can perform a limited number of transactions. Having received convincing results of work in this city, SKB-bank decided to transform representative offices into full-fledged offices. The Smolensk Bank temporarily suspended the work of one of the offices to expand its functionality. Before the transformation, there was only one cash desk for the services of customers, and only one teller could help them carry out the necessary banking operations. Over time, queues began to appear, there were clearly not enough specialists to service all those who applied to this office.

In connection with the active reduction in the total number of banks and the redistribution of their assets and divisions among the remaining players, another reason for the closure of banking divisions has appeared - internal competition. Thus, the branch network of the bank "Solidarity" after the merger in 2008 into a group with the bank "Potential" (Togliatti), accepted for reorganization, has doubled. Some additional offices of the two banks began to compete on the same sites. Therefore, in 2008-2010. the branch network was systematically optimized, five outlets had to be cut.

When it comes to closing business units, VTB24 prioritizes cost optimization. During the crisis, this approach was the most reasonable. As a result, 34 offices that did not correspond to the formats of a retail bank were closed. However, VTB24 acted not only with harsh methods. For a third of offices, VTB24 has reduced the rental rate by almost 20% and continues to negotiate with landlords to reduce rates. The total savings from the reduction in rental rates on an annualized basis amounted to almost 100 million rubles.

In general, the cost of renting premises for banking units is becoming an increasingly significant factor. In some cases, especially during a crisis, it is high rent that can lead to the closure of an additional office.

Number of bank offices in the federal districts of Russia

Structure of territorial subdivisions of banks

An internal structural subdivision of a credit institution or its branch is a subdivision located outside their location and carrying out banking operations on behalf of a credit institution, the list of which is established by the regulations of the Bank of Russia, under the license of a credit institution.

Types (forms) of possible internal structural subdivisions are established by acts of the Bank of Russia.

The authority of a branch of a credit institution to make a decision to open an internal structural unit must be provided for by the regulation on the branch of a credit institution (Parts 8-10, Article 22 of the Law on Banks and Banking Activities).

In this regard, we can highlight the general differences between the internal structural divisions of credit institutions:

a) from branches and representative offices - that they can be opened not only directly by credit organizations, but also by their branches;

b) from branches - that the list of operations that they can carry out is limited not only by the license of the credit institution, but also by the regulations of the Bank of Russia.

In addition, internal structural divisions of credit institutions are not provided for the opening of correspondent sub-accounts, but only personal accounts to the account of a credit institution or its branch.

There are also differences that are already characteristic for each type (form) of the internal structural unit separately.

A credit institution or its branch, provided that the credit institution does not have a ban on opening branches, is entitled to open the following internal structural subdivisions:

Additional offices;

Operational offices;

Credit and cash offices;

Operating cash desks outside the cash center;

Exchange offices;

Other internal structural divisions provided for by Bank of Russia regulations. In particular, banks or their branches have the right to open mobile points of cash transactions operating on the basis of a motor vehicle (PPKO).

1. Additional office may not be located outside the territory subordinated to the territorial institution of the Bank of Russia, which supervises the activities of the relevant credit institution (branch).

An additional office is entitled to carry out all or part of the banking operations provided for by the license issued to the credit institution for banking operations (regulations on the branch).

2. Operational office may be located both on the territory subordinated to the territorial institution of the Bank of Russia, which supervises the activities of the credit institution (branch) that opens an operational office, and outside such territory, but within the same federal district.

The operational office has the right to carry out all or part of the banking operations provided for by the license issued to the credit institution for banking operations (the regulation on the branch).

However, in relation to an operating office located outside the territory subordinate to the territorial institution of the Bank of Russia that supervises the activities of a credit institution (branch) that opens an operating office, restrictions are imposed on certain operations. For example, such operating offices may not:

Carry out operations for the purchase and sale of foreign currency;

Provide loans to credit institutions, place deposits and other funds with credit institutions, as well as receive such loans and attract deposits;

Open and maintain correspondent accounts of credit institutions (branches), as well as open such accounts in other credit institutions;

Issue bank guarantees;

Perform acceptance and avalization of bills of exchange.

Such operating offices also have restrictions on the sale and purchase of securities.

3. Credit and cash office may be located outside the territory under the jurisdiction of the territorial institution of the Bank of Russia, which supervises the activities of the credit institution (branch) that created it.

The credit and cash office has the right to carry out:

ü operations to provide funds to small businesses and individuals, as well as to return (repay) them;

ü cash services for legal entities and individuals;

ü acceptance of cash currency of the Russian Federation and foreign currency for the transfer on behalf of an individual without opening a bank account.

The credit and cash office is also entitled to carry out banking operations provided for exchange offices with foreign currency in cash and checks, the nominal value of which is indicated in foreign currency.

4. Operating cash desk outside the cash center may be located outside the territory under the jurisdiction of the territorial institution of the Bank of Russia, which supervises the activities of the relevant credit institution (branch).

The operating cash desk outside the cash node has the right to carry out the same operations as credit and cash offices, except for lending to small businesses and individuals.

5. Exchange office may be located outside the territory subordinated to the territorial institution of the Bank of Russia, which supervises the activities of the credit institution (branch) that opened it.

The following types of transactions can be carried out in exchange offices:

ü purchase and sale of cash foreign currency;

ü exchange of one foreign currency for another (conversion);

ü exchange of banknotes of a foreign state;

ü replacement or purchase of damaged banknotes of foreign countries;

ü acceptance of banknotes of foreign countries for sending for examination;

ü purchase and sale of checks denominated in foreign currency;

ü payment of checks;

ü acceptance of cash foreign currency and the currency of the Russian Federation for crediting to the accounts of individuals using payment cards;

ü issuance of cash foreign currency and the currency of the Russian Federation from the accounts of individuals using payment cards;

ü acceptance of cash foreign currency and the currency of the Russian Federation for the transfer from the Russian Federation on behalf of an individual without opening a bank account and a number of other operations.

Data on all listed structural subdivisions of credit institutions are entered by the Bank of Russia in the Book of State Registration of Credit Institutions.

The date of opening of an additional office, credit and cash office, operating office, operating cash desk outside the cash center is the date the credit institution sends a notification to the Bank of Russia. From this date, internal structural divisions are entitled to carry out banking operations and transactions delegated to them.

The exchange office has the right to start working only after receiving a positive conclusion from the Bank of Russia on the compliance of its premises for performing transactions with valuables with the requirements established by the regulatory acts of the Bank of Russia.

By opening these internal structural divisions, a credit institution, directly or through its branches, can create an extensive customer service network.

The internal structural divisions of a credit institution include: additional, operating and credit and cash offices, operating cash desks outside the cash center.

The procedure for opening bank branches is regulated by:

Article 22 "Branches, Representative Offices and Internal Structural Subdivisions of a Credit Institution" of the Federal Law "On Banks and Banking Activities";

Instruction of the Central Bank of the Russian Federation dated April 2, 2010 No. 135-I (previously - No. 109-I dated January 14, 2004) "On the procedure for the Bank of Russia to make a decision on the state registration of credit institutions and the issuance of licenses for banking operations" (hereinafter - Instruction No. 135-I)

Additional office- an internal structural subdivision of the bank or its branch. May carry out banking operations or part of them, provided for by the license of the Central Bank for the credit institution or branch that created it. It opens only on the territory of the same settlement where the bank itself or its branch is located.

Credit and cash office- an internal structural subdivision of the bank or its branch. Carries out operations for the provision of funds to small businesses and individuals and their return (repayment), as well as cash services for legal entities and individuals. Such a definition can be found in Instructions of the Bank of Russia No. 135-I.

Operating cash desk outside the cash center- an internal structural unit of the bank, which provides only cash services to the population: accepting and issuing deposits, accepting utility and other payments from individuals, buying and selling securities (Instruction No. 135-I).

By Decree No. 1794-U dated February 21, 2007, the Bank of Russia gave credit institutions the right to open a new type of internal structural unit - an operational office.

The office can carry out all or part of the banking operations provided for by the license of the Central Bank for the financial institution (branch) that created it. Subdivisions located outside the territory of the institution of the Bank of Russia, which controls the activities of a credit institution (branch), have a number of restrictions on the implementation of operations. For example, they are not entitled to carry out operations for the purchase and sale of foreign currency on the interbank and exchange currency markets, securities and other financial assets associated with the bank's taking financial risks, etc.

Unlike an additional office, operating cash desks outside the cash node, credit and cash and operating offices may be located outside the department of the territorial institution of the Bank of Russia, which supervises the activities of the bank (branch) that opened this unit.

It should also be noted that, in accordance with the instructions of the Central Bank No. 2423-U, since October 1, 2010, all exchange offices have been transferred to the status of internal structural units (with the exception of the mobile point of cash transactions) or closed.

"Settlements and operational work in a commercial bank", 2012, N 5

In the conditions of fierce competition, the modern banking sector needs to optimize its organizational structure and build a more flexible management system. In this regard, one of the most common trends in recent years in the development of the regional banking sector has been the transformation of branches of large commercial banks into operational offices, that is, the construction of the so-called matrix management structure. The topic discussed in the article is relevant for banks with a wide branch network, focused both on the development of retail business and on servicing a limited circle of legal entities.

Some large banks such as TRUST, VTB24, Alfa-Bank<1>, Raiffeisenbank<2>and Promsvyazbank<3>, this procedure has already passed and continue to move in the direction of centralization. Others, such as VTB Bank<4>and not very large banks (Bank "Otkritie", "Russian Capital"), this procedure is just starting.

<1>Alfa-Bank began the process of converting branches into operating offices back in 2008. The need for changes in the bank's structure was dictated by two main factors - changes in banking legislation and the introduction of the most modern and multifunctional IT platform that unites all the bank's regional clients.
<2>The Supervisory Board of Raiffeisenbank made a decision during 2010 to close 11 branches.
<3>48 branches of Promsvyazbank were transformed into operating offices.
<4>As part of the reform of VTB's regional network, 7 base branches, 80 operational offices, 17 additional offices and 3 operational support centers will be created.

Obviously, not only unprofitable branches are closed (transformed), but also profitable ones, as a rule, if the directions of delegated functions change due to a change in the policy of the head bank or if the programs under which the branch was opened did not bring the expected result.

Branches are transformed into operational offices, thus moving to a new management system. The most modern and efficient matrix structure is selected, which is designed to standardize the service throughout the network, minimize back-office functions at points of sale through centralization, save costs and concentrate on sales and service quality in places. Thanks to these transformations, the bank will be able to optimize the management of all resources and provide customers with new opportunities: the product range will be expanded and the quality of service will increase.

Positive aspects of the transformation of branches into operational offices

Let us list the main advantages of the banking sector transformation based on the experience of the largest Russian banks.

First of all, during the transformation of a branch into an operating office, a separate accounting unit is liquidated, that is, the need to form a separate balance sheet and other mandatory reporting in accordance with the requirements of the Bank of Russia disappears for the operating office. In other words, there is no need to form a separate accounting unit for the preparation of these reports, but the question remains where and to whom these functions will be transferred.

The next point is that the newly created structural unit of the bank does not have the position of chief accountant, which, in turn, frees the bank from the approval process at the Bank of Russia and reduces personnel costs, which is especially important for banks with small regional offices. In addition, the regime for appointing the head of the operational office is also changing: when the status changes, the need for coordination with the territorial department of the Bank of Russia changes to the obligation to simply notify him of his appointment.

Due to the fact that the legal operating office is not a separate (separate) structural subdivision of the bank, it only has a sub-correspondent account and does not make independent payments, which leads to a decrease in operational risks (including those associated with fraud) and a decrease in the amount of non-performing assets.

The requirements of the Bank of Russia regarding the premises of branches, including the requirements for technical strength and the availability of a vault (or safe room), which lead to significant additional costs, cannot be ignored, while the Bank of Russia does not impose such requirements on operating offices. As a rule, operational offices are equipped with credit institutions, depending on the degree of protection and the range of services offered by the office.

It should also be noted that the procedure for registering an operating office is much shorter than the procedure for registering a branch. This is extremely important to ensure the manageability of the network, that is, to ensure the continuity of the bank's activities in the region of presence (in case of relocation, opening, closing).

In general, the decision-making system remains the same as in branches: operational offices are left independent in making credit decisions, in using established credit limits, in concluding credit and economic agreements, that is, regardless of the status, regional points of sale can be endowed with all the powers necessary for making managerial decisions and successful business development.

So, the main reason for the expediency of converting branches into operational offices is the need to increase the efficiency of the existing network of branches by reducing the cost of supporting operations, in addition, strict centralization increases the level of control and automation of processes and, as a result, reduces costs: such a transformation creates an organizational platform to transform the process of horizontal delegation of authority (when many large regional branches report to one head office of the bank) into a two-level (matrix) system, when the head office manages the so-called bushes, that is, several base branches, which, in turn, have operational control over several operating offices.

Stages of branch network transformation

The process of transformation of the branch network requires a large-scale analysis and involvement of special experts working in the market of such services. As a rule, a "pilot" branch is selected, where the transformation process is tested.

The main task of the bank is to develop a plan for the transition to a new structure and the introduction of a single reliable automated banking system. In this regard, business units are preparing a methodology for carrying out organizational measures related to the transformation of branches, and specialized firms, as a rule, provide the bank's IT specialists with the necessary advice on using the developed functions.

A huge amount of work also falls on the shoulders of the central accounting department, since it is responsible for inventory and reserving accounts, transferring balances with zero balance, transferring contracts, terms of servicing accounts, tariffs, interest rates, etc.

In the future, the development of a replicated solution and the mass transformation of the branch network are carried out. As for the organization and management of the project, after the "pilot branch" a typical matrix of project roles, standard methods of communication and interaction with bank departments, a standard plan for carrying out all IT and business activities to prepare and carry out the migration of branches, etc. are approved. The main effect is achieved through a reduction in the number of employees, who in the regions after the reform require less than before.

Accounting aspects in the context of centralization

As we have already said, building a matrix management structure allows you to standardize the service throughout the network, minimize back-office functions at points of sale through centralization, save costs and concentrate on sales and service quality in places. Operating offices are freed from the need to prepare and submit reports to the Bank of Russia, reporting to tax authorities is simplified, etc.

In the conditions of the so-called transitional period, a bank that has decided to reform its branch network approves regulatory documents regulating the issues of document circulation, accounting and areas of responsibility between newly created structural divisions, including, in order:

implementation of client settlement transactions (non-cash payments);
conducting cash transactions;
maintaining a file of settlement documents;
suspension of operations on customer accounts;
conducting operations with securities (usually promissory notes and certificates of deposit);
conducting credit operations;
conducting deposit transactions, etc.

The greatest difficulty, in our opinion, is caused by the issues of organizing document management when maintaining card files of settlement documents and suspending operations on customer accounts, since the originals of primary accounting documents (payment requests, collection orders, decisions and resolutions of authorized bodies on suspension of operations / blocking of funds) are received by operating office at the place of registration of a legal entity, and accounting is maintained in the bank's division that performs accounting and control functions.

Let us turn to some definitions and functions of the structural divisions of the bank, which directly affect the process of transforming a branch into an operational office.

Front office (front office) is a subdivision that concludes bank transactions. In the conditions of transformation, these functions fall on the divisions of the parent organization (additional offices) and base branches, which remain in the structure of the bank.

The back office (back office) is an internal structural unit of the bank that processes transactions, performs settlements and maintains accounting, that is, it performs auxiliary functions in relation to the front office. This subdivision carries out accounting, storage of primary accounting documents, prepares financial statements, monitors compliance with limits, if necessary, and provides information to the central accounting department in accordance with the requirements of the Bank of Russia.

Back office functions can be distributed among several departments. Advanced banks also distinguish the middle office (middle office) as a separate staff unit, emphasizing its difference from both the front office and the back office.

Middle office (middle office) - an internal structural unit of the regional operational office, interacting with customers in terms of signing contracts for banking services and other framework agreements (master agreements, etc.), accepting customer orders for transactions (settlements, purchases) sales, confirmation of accounts, transfer of funds, etc.), provision of statements / responses to customer requests in accordance with the established procedure. The middle office is subordinate to the front office.

The back office does not serve bank customers, unlike the middle office, but interacts with counterparties.

Centralized accounting<1>- an internal structural subdivision of the bank, formed in the area of presence of the base branch (can be formed on the basis of several branches), exercises control (in terms of accounting) over all regional operational offices subordinate to the branch.

<1>Operational Support Centers.

Centralized accounting takes over the operational functions of all branches, which allows you to concentrate the activities of regional points of sale on business development, as well as standardize service and improve the quality of customer service throughout the network.

The given distribution of responsibilities may vary slightly for different banks - for example, control over compliance with limits can be assigned to the internal control unit (which is methodologically more correct, but this raises the question of the levers of influence of this unit on the back office), in some cases, management reporting may also be transferred to other divisions (which, in turn, may lead to discrepancies in reporting), etc.

In our opinion, the process of centralization meets the requirements of the modern banking system. The purpose of creating a centralized accounting department (operational support centers) is to consolidate the functions of the back office, accounting department and the operations department, which processes client transactions. In practice, for clients, all the changes in principle remain imperceptible: it does not matter for them where and by what collegiate body of the bank their applications are considered, where the bank's accounting department is located and where their documents are stored. The main thing is the quality and speed of service. This network reform just allows you to achieve this. At the same time, the reduction of the bank's expenses will allow offering customers more profitable products, while the optimization of business processes will increase the speed and quality of service.

As noted above, with the full centralization of accounting in the staffing of the operational office, the position of chief accountant is not provided, the functionality of accounting services is significantly reduced. Settlement and monetary documents are executed by operational employees. All settlements are made through centralized accounting, operational offices do not open their own accounts with other credit institutions. Non-cash settlements are carried out centrally through the correspondent accounts of the base branches.

The parent organization of a commercial bank bears all obligations to the clients of the closed (reorganized) branch. Customer service continues on the basis of the operating office. Closing client accounts and opening new ones in this case is not required.

Only in the event of the complete liquidation of the branch, the bank can unilaterally change the numbers of bank accounts of the clients of the closed branch, loan and other intra-bank accounts, while the bank's obligation is to notify its clients in writing in advance.

The balance of funds from the accounts of the closed branch in the event of complete liquidation are transferred to the correspondent account of the credit institution (balance sheet account of the second order 30101).

The following accounts opened on the balance sheet of the branch are subject to closure:

accounts for accounting for income and expenses (in this case, the balances are previously transferred to the accounts for accounting for income and expenses of the head organization);
accounts of interbranch settlements (balance sheet account of the second order 30301/30302);
accounts for settlements with other debtors on business transactions (balance sheet account of the second order 60312).

Access to accounts for accounting of a card index of settlement documents (off-balance accounts of the second order 90901, 90902) and for other operations (credit, deposit, operations with securities - a purely technical issue, closing previously opened accounts in this case is not required until the expiration of contracts.

Upon the decision to close a branch, it should be removed from the register with the tax authorities and the territorial office of the Bank of Russia supervising the bank’s activities should be notified, as well as the territorial office of the Bank of Russia at the location of the branch should be notified. The date of closing of a branch of a credit organization is the date of sending the said notice.

Additional risks arising from settlements in the conditions of centralization of back office functions

Many years of experience in the formation of the banking sector in Russia has shown that opening a branch is too expensive for a bank, and therefore there is an opinion that an operating office is a sales point of a small bank with a limited range of banking services, which is subordinate to the branch. Operational offices were opened, as a rule, in the regions of the Far East, the Far North and Siberia, in hard-to-reach places. In some cases, some managers do not see any difference between the operating and additional offices. This has an impact on the bank's personnel policy and the ability to select a responsible, representative manager responsible for attracting customers. In other words, in some cases, the absence of branches in the regions where a commercial bank operates may affect its status and image.

Operating offices are, in fact, intermediaries between the bank (branch) and the client. The main task of their creation is the centralization of back-office functions and the reduction of document flow. At the same time, in the absence of your own correspondent account, the process of processing client payments becomes a little more complicated. Settlement documents of clients served at the operating office are processed in one region, and funds can be transferred to clients of other banks from the correspondent account of a branch or parent organization located in another region of Russia. In other words, if the operating office and the branch from which it is opened are subordinate to different territorial departments of the Bank of Russia, there is a certain delay in the payment traffic, which is also exacerbated by the bank’s internal procedures (accumulation of payments for a flight in a branch can occur without taking into account the urgency of payments operating office clients).

In regions far from the head office, the selection of clients was based, as a rule, on the human factor. Thus, when the branch is closed, the question of the safety of funds belonging to large corporate clients and individuals remains. Branch managers, having at their disposal a cash desk and a correspondent account, could guarantee a certain segment of customers a refund, despite the state of the parent organization and the bank as a whole. The head of the operational office is deprived of such an opportunity (only the balances on the cash desk remain under his responsibility). This fact significantly affects the relationship with VIP-clients in the regional markets.

It cannot be overlooked that the centralization of back office functions leads to increased operational risks. Despite the fact that there is a decrease in the staff of the bank's accounting apparatus and the bank is striving to switch to electronic document management, there is a high probability of incorrect processing of settlement documents on paper, which continue to exist in the settlement system of Russia: in the operating office, documents are received by one operating window, and its final processing - another division of the bank. The function of operational workers in such conditions is reduced only to the receipt of settlement and monetary documents, which "blurs" their responsibility.

In such conditions, the banks' duty is to develop and approve internal regulatory documents that clearly regulate the issues of document circulation and areas of responsibility between the newly created structural divisions of the bank.

The technology for processing accounting information for the operations of newly created operating offices is based on the principle of programmatic follow-up control and autonomy of the work of accounting departments. Opening of accounts, accrual of interest and other cash flows on customer accounts are carried out directly in the back office, while the responsible employees of the accounting department (operational support centers) monitor all operations of the regional operating offices subordinate to them. Compliance with a clear distribution of functions between the back, front and middle offices and the implementation of well-established interaction will make it possible to competently structure business processes within a credit institution and reduce banking risks.

Particular attention should be paid to the operational risks that arise in the course of settlement operations on customer accounts. There is a tendency to shift most of these risks to the back office, but the best solution to the problem is to work in such a way that the front office is directly involved in minimizing these risks.

As practice shows, the often overlooked operational risks of the back office are sometimes costly and potentially more significant than market risks. Examples of operational risks arising from settlement transactions through operational offices are:

software failures;
shortcomings in organizing the storage of documents on paper and in electronic form;
deficiencies in management, supervision, organization of control;
errors in reports submitted to the base branches;
attempts to hide losses or achieve personal gain (fraud by employees of operating offices);
third party fraud (by customers).

It is not difficult to establish and control certain levels of market and credit risks. But identifying and assessing the levels of operational risks and their sources is not an easy task. The main problem is that operational risks cannot always be identified in time. Losses often arise as a result of a complex combination of events, which makes it difficult to predict and model risk situations.

And it is no coincidence that the Bank of Russia pays great attention to the recommendations of the Basel Committee on Banking Supervision in the area of risk identification, which has done a lot of work in this area. In February 2003, Sound Practices for the Management and Supervision of Operational Risk was published. Thanks to the joint efforts of researchers and risk managers of large banks, on the basis of recommendations, it was possible to identify methods for managing operational risks. The final version of the Basel II agreement appeared in 2004. According to the decision of the Basel Committee, operational risk is the risk of losses associated with inadequate or unsuccessful internal processes, systems or human errors or external events. It should be noted that this definition does not take into account risks of loss of reputation, although it is clear that some operational events may affect the "good name" of a credit institution. The Basel Committee identified seven main categories of events that lead to losses, the likelihood of which increases significantly with a centralized form of accounting:

dishonest actions of employees of the operational office (internal fraud): losses associated with fraud, embezzlement of someone else's property or non-compliance with the law or internal regulations of the bank, in which at least one of the officials is involved;
external fraud: losses of the bank related to fraud, misappropriation of other people's property or non-compliance with the law by the bank's customers and other third parties (theft, robbery, hacker attacks and other similar factors);
work practices and work safety: losses associated with actions that are contrary to laws or agreements regarding labor, health and safety, resulting in the payment of compensation for claims for personal injury or for discrimination (litigation between the bank and employees of back offices);
Customers, Products and Business Practices: Losses arising from an unintentional or negligent error in the performance of professional duties for specific customers or from the nature or design of products offered to customers;
damage to physical resources: losses associated with the loss or damage of resources due to natural disasters or other events;
business disruptions and system failures: losses associated with business disruptions or systems failure. This category includes losses due to failure of computer hardware, software, networks or utility services;
execution, delivery and process management: losses associated with failures in transaction processing or process management, as well as losses caused by unsuccessful relationships with third parties.

With regard to operational risk management practices, the Basel Committee and various supervisory bodies prescribe a set of operational risk management (ORM) standards for banks and similar financial institutions.

In view of the foregoing, the parent organization (base branch) of the bank should pay great attention to identifying and minimizing operational risks when opening operational offices. In other words, the process of monitoring the activities of newly formed structures should include:

procedures for timely identification of risk factors;
operational risk assessment;
constant monitoring of all operations;
reduction of operational risk factors.

Back office staff should provide relevant information on settlement exposures, etc. However, overall planning, coordination and monitoring should be provided centrally - the centers of operational support.

conclusions

So, the main group of reasons that necessitated the reform of the branch network of large Russian banks is the low level of profitability of branches, excessive concentration of efforts on the development of those areas of banking activity that brought immediate, mostly speculative income. It should also be noted the insufficient qualifications of the management personnel of many banks, the lack of reliable methods for managing assets and the branch network, and the underestimation of the danger of risks adequate to the volume and nature of operations. It is not uncommon for banks to allow unreasonably high expenses for opening branches, building buildings, which increased the cost of their operations and, as a result, reduced profits.

The purpose of the reform is to reduce costs and achieve the reliability of the bank (quality and speed of service, ensuring the continuity of client payments). As practice shows, for banks focused on retail business, a wide network of cheap operating offices is more attractive, for universal and focused on servicing only large customers - legal entities and individuals in the region of presence - a branch.

O.Yu.Kashanova

Internal Auditor