A bank executive is one of a financial institution’s most important administrators. These executives are in charge of a bank’s day-to-day operations, long-term planning, and regulatory compliance to ensure that it meets the needs of customers and shareholders. Bank executives typically have several years of industry experience and may hold college degrees such as a master of business administration (MBA) or an accounting degree. Compensation varies depending on the financial institution and the tasks performed.
The chief executive officer, chief financial officer, and chief operations officer are all candidates for key executive positions at a bank. Other top positions, such as regulatory compliance, commercial customers, retail customers, and risk management, may be maintained depending on the structure of a bank’s management. A bank executive usually has one or more assistants to assist with office tasks.
The bank executive reviews the bank’s operations on a daily basis, identifies problems and concerns, and develops policy. Each executive is likely to concentrate on a single area of operations, which may necessitate some collaboration with others. The chief financial officer, for example, meets with the commercial and retail banking divisions to discuss revenue, ways to boost profits, and other topics. Similarly, the risk management executive may meet with the chief operating officer to discuss ways to reduce the bank’s risk exposure.
If a bank is publicly traded, its executives must answer to shareholders. Regular meetings are held to discuss and set policy, develop product proposals, and improve the quality of the bank’s products and services. A bank executive can use an annual report to discuss the bank’s accomplishments from the previous year, make projections for future performance, and provide context for financial disclosures. If a bank’s revenue falls, for example, executives may want to reassure shareholders that the drop is due to a major investment or other activity that will benefit the bank in the long run.
In a crisis, a bank executive may be called upon to resolve the situation while also maintaining public communication to reassure the public. Meetings with bank personnel to discuss what is happening and how to resolve it, as well as holding press conferences to discuss the event, are examples of this. Banks are particularly vulnerable to panic, and public relations must be handled with caution to avoid situations such as panicked customers withdrawing large sums of money.