Strategy and Organization of Corporate Banking (eBook)

Professor Giacomo De Laurentis is Professor of Banking and Director at the Banking and Insurance Department of Bocconi School of Management, Milan - Italy.

Foreword 5
Table of Contents 8
Introduction 9
1 Theoretical Drivers of Divisionalization 17
1.1 Chapter Outline 17
1.2 Foundations of Organization Theory - Main Approaches 18
1.3 Characteristics of Basic Organizational Structures and the Multidivisional Form 21
1.4 Divisionalization and its Evolution in Industrial Segments 26
1.5 Types of Divisionalization 32
1.6 Role of Divisionalization by Market Segments 34
1.7 Performance Measurement in Divisionalized Form 37
1.8 Drivers of Divisionalization and Future Trends in Banking Organizational Change 39
2 Corporate Banking Strategies: Products, Markets and Channels 45
2.1 Chapter Outline 45
2.2 Mission of the Corporate Banking Area 46
2.3 Market Segmentation of Corporate Banking Area 54
2.4 Products and Services Designed for Corporate Customer 58
2.5 IT and Training Emerging Needs 64
2.6 Critical Aspects of Market, Product and Channel Strategies in the Corporate Area 66
3 Organizational Structures 71
3.1 Chapter Outline 71
3.2 The Level of Divisionalization of Corporate Banking Structures 72
3.3 Models of Macro-Structure Organization 81
3.4 Basic Models for the Structure at Head Office Level 88
3.6 Major Interactions Between the Corporate Area and Other Bank Units 102
3.7 Objectives and Performance Valuation in the Corporate Area 104
3.8 External Communication and Brand Choices 104
3.9 Critical Aspects for the Successful Design of Divisionalized Organizational Structures 105
4 Corporate Banker's Role and Credit Risk Management 115
4.1 Chapter Outline 115
4.2 The Corporate Banker's Tasks 115
4.3 The Tasks of the Corporate Banker's Assistant 118
4.4 The Corporate Banker's Portfolio 119
4.5 The Corporate Banker's Involvement in Loan Underwriting 121
4.6 Credit Risk Analysis and Rating System Structure 125
4.7 Credit Risk Control 133
4.8 The Management of Non-Performing Loans 134
4.9 The Exploitation of Information Synergies 135
4.10 The Corporate Banker's Competencies and Tools 138
4.11 The Corporate Banker's Role and Credit Risk Management: Critical Aspects 142
5 Operating Mechanisms 147
5.1 Chapter Outline 147
5.2 The Degree of Differentiation in Human Resources Management 147
5.3 The Degree of Differentiation in Planning and Management Control 152
5.4 Specificity Required/Pursued in Leadership and Corporate Culture 155
5.5 IT and Training Emerging Needs 158
5.6 Choosing the Operating Mechanisms: Critical Aspects 160
6 Information Systems 163
6.1 Chapter Outline 163
6.2 Differentiation and Organizational Separation of IT for the Corporate Area 164
6.3 Organizational Basic Models for the Corporate Area Information Systems 164
6.4 Application Acquisition/Development Basic Models 165
6.5 Involvement of the Corporate Area Operating Units in IT Decisions 166
6.6 Information Technology Solutions for Emerging Needs 167
6.7 Management of IT Investments in the Corporate Area 168
6.8 Management of Information Systems in Corporate Banking: Critical Aspects 170
7 Conclusions 175
References 191
List of Contributors 198