CORPORATIVE BANK DEVELOPMENT STRATEGY FOR FINANCIAL SYSTEMS DEVELOPMENT OF COUNTRIES IN TRANSITION
Strategic directions of bank development of are a driving force of the long-term determination of bank’s business in the countries in transition. It refers to the right vision and mission of the bank as well as its profit centers. In numerous banks in the countries in transition, strategic development plan is frequently neglected, because of the transitory phases of the bank life cycle, bank mergers and acquisitions and globalization of banking services. Unlike the assumed vision of the bank which provides the opportunity of choosing the legal bank development, its mission is to determine its own goals and tasks. The realization of the bank mission is made in the process of determining the vision and strategic plans for the bank development. After determining the bank vision, mission and goals, the bank management chooses the corporative bank strategy on the basis of SWAT analysis. Bank corporative strategy can have the form of 1) the strategy of defeated institution (the specialized strategy, comparative advantage strategy, and bank acquisition strategy), 2) the strategy of dominant institution (confrontation strategy, positioning strategy, and bank offensive strategy), 3) possible loss strategy (hijacking strategy, testing strategy), 4) the strategy of definite loss (strategy of detour, strategy of hope in the future). The bank managers have the task to choose the most appropriate strategy at the given point of time. Therefore, bank managers should first set the bank goals and time span for their realization; afterwards they analyze the possibility of realization of the bank corporative strategy in order to eventually choose the final version of the bank corporative strategy, which thus becomes part of the bank strategic plan.