Branch Banking Case Study

2073 Words9 Pages
Banks establish their branches all over the country to maximise their respective market shares in banking. The basic characteristic of branch banking is that the branch operations are controlled by head offices and each branch is regarded as a profit centre. Each branch is regarded as a profit centre instead of a cost centre because each of them has the ability to produce revenue through lending and investment activities.

TASK

You are the Senior Manager of Bank Berjaya’s Branch Banking Department at head office. Your bank has 50 branches throughout the country.

(a) Explain how do you assess the performance of your branches?

Contact centers regularly measure and manage their agents’ performance to make decisions to support organizational
…show more content…
A much more rewarding approach is, then, to start with imperfect information assumption and reduce its negative effects by information selection (i.e. introducing an ordering on the information set to identify the most relevant ones) and (or) by information aggregation. Therefore information aggregation is either ignored or when it is implemented, except in the well-defined world of accounting, it is done without paying sufficient attention to its rather delicate methodological problems. The findings in the preceding section indicate that, a bank management should not overstate its information gathering and processing ability and also shouldn’t undermine the role of the head office’s function as the sole supplier of the collectively used inputs. Therefore a proper strategy for the bank management to handle the profit maximization problem is to try to reduce the informational dimension of the problem. In practice, a bank management can only observe the following variables (admittedly with some errors of

More about Branch Banking Case Study

Open Document