dr. gyorgyi virgula: executive information system in … executive... · · 2013-10-04dr. gyorgyi...
Post on 07-Jun-2018
214 Views
Preview:
TRANSCRIPT
:1e"'~-~·""""-A"'~~-:;"'-;'~",,,,~.,,~,,~,:",,,-"\,~,?>~'i:.:('~~:;'-~'- - '-- -'-" ~,
1
I.
ll.
dr. Gyorgyi Virgula: Executive Information System in Banking area
INTER-EUROPA BANK RT.
BACKGROUND:
INTRODUCTION:
Inter-Europa Bank is a medium large joint.;.venture ( main shareholders is
Istituto Bancario San Paolo Bank) commercial bank, it was established in
1981. During the last five years the Bank was in the best five banks in
Hungary. Inter-Europa is specially focused on the medium large (or large)
customers with good qualifications, and started its retail activity in 1993.
HARDWARE AND SOFIWARE ENVIRONMENT, NECESSITY OF EIS
The Bank is established it's Executive Information System (EIS) in 1992,
and from this time it is continuously developing. This system is specially
made for the top management of the Bank (member of the Board, general
manager and executive directors). The EIS is working and calculating all of
the figures on daily basis, and handling approximately 2 year-long trend
and daily database, helping the prognostic and planing procedure.
The Bank has an AS/400 hardware, and on it, working a MIDAS software
(from the BIS London) offering a multi-currency system, general ledger
possibility, daily accrual of interest rates, daily balance sheets, profit and
loss accounts ... MIDAS handle 95% of the Bank activity, but in it there is a
limited possibility· to use or to analyze together the information of each
modules, or to restructuring this information base. Due to this limitation
Dr Gyorgy Virgula (+361) 111·8488, Budapest, Szabadsig tar 15., Hungary
312
m.
IV.
the top management of the Bank really need a concentrated, analyzed,
calculated information base which is focused on the key point of the bank
activity and operation.
Questions, for what the lecture will give answers:
1: Requirements of a banking EIS - comparing to the EIS of the other
industries.
2: Logical way of EIS's development.
3: The information - and users level of EIS - "tip of the iceberg".
4: Structure of the each information level.
5: Plan of developing.
GENERAL REQUIREMENTS:
U1UITIES AREA
4.1. Strategy planning procedure
4.2. Supporting financial planning
4.3. Supporting decision makers
4.4. information base for controlling
Dr Gy6rgy VirguJa (+361) 111-8488, Budapest, Szabadsag t6r 15., Hungary
313
.' '. -~., -.. - .... -- -- --
".- ~ . - - - . _ .. ".
'~.
Development of a Multi-purpose Strategy 1
* Technology * Skills, Supply * Market
2 ..
r~~~~~~~··~:~·~;~~~···lilll
L~·
Changing Areas
Features In the changing environments.
Strengths, Weaknesses
5 ............................... ", ........................... "
t Purposes, Goals
: * Stability of the Profits : * Growth of the Equity
Possibilites Critical factors
of success Planning procedure
Results
If we leave
Dr Gyorgy Virgula (+361) 111-8488, Budapes~ Szabadsag tar 15., Hungary
314
* Regulation * Economy * New Entrants
.. ~ •....••.....•... - ....•...••....•••...•••••...
,··«··················t······························· ...... .
Feedback
How Often? EIS
~r~='X"',",=';"'''''=O:\""",'''''~'''''< - --""''''''''''''-"",.. """-."",..,.;;-,,-,,~:e.--""""~';"_~"l-~"l...-_~_,,-"'--~.-_~
I ~ v.
VI.
MULTI PURPOSE SAS USE
MJL TI-FLtJCTIQ\J SAS USE LOGICAL STRlJCT1R: a= EXEClJ11VE 1N=0RIVL4T1Q\J
SYSTBVI
LOGICAL WAY OF INTER EUROPA BANK'S EXECUTIVE
INFORMATION SYSTEM
STANDARD INFORMATION NECESSITY OF EIS
IN ANY COMPANY IN BANKS:
1. Sales (Quantity, volume) 1. Volume, total assets, stocks
2. Quality 2. Profitability and risk of services
3. Profitability 3. Profit and Loss account
4. Market position 4. Market position
5. Plan realization 5. Utilization of financial plan
Dr Gyorgy Virgula (+361) 111-8488, Budapest, Szabadsag tar 15., Hungary
315
-.-.-.-,...--." _. __ ._e __ • _. -_._~-~--_--_-.<, .. '~ .~-,_-.~.-,,'_ .~._ .. __ ... _~ ~._:_.-J __ :_.~:_ .• _."_ .. _- _ _:..
MAIN PART OF EIS:
1. CONCENTRATED INFORMATION ABOUT TOTAL ASSETS AND
PROFIT:
In the first screen the executives managers can find the main important
figures in several form. These are the daily data of total assets and profit,
showing them in number form, showing the changes in % (comparing to
previous day) on the type of screen, and they can also see the daily data
base trends of the actual business year and comparing it to the previous
year's trends also.
l.SUMMARY TABLE:
Showing the following main important indicators of any companies, and of
the bank also:Cyou can find them on daily bases, collected together five
working days, and a changes column)
1. total assets
2. total income
3. total expenses
4. profit of the day
5. Shareholders" funds
If there is any more interest the users can go down and down to the
system for having more and more information. How can they do that?
There are able to go down through the following four logical way:
Dr Gyorgy Virgula (+361) 111-8488, Budapes~ Szabadsag tar 15., Hungary
316
2. VOLUME: TOTAL ASSETS:
2.1.STRUCTURE (MAIN GROUPS) OF ASSETS AND LIABILITIES
2.2.STRUCTURE OF ASSETS AND LIABILITIES BY BRANCHES
These tables show together five working day data, which means business
week together, and in the last column we can find the volume of changes
comparing it to data of previous day. We would like to emphasize the
direction of changes, and due to it we used the three main color. Red:
reduction, yellow: stabile without heavy changes, green: growth.
In these screen the users can find the items of assets and liabilities
calculated them in the following structure:
*
*
*
grouping them by sectors: government, corporates, banks,
private individuals
grouping them by periods: assets and liabilities within one year,
and over one year
grouping them by foreign or domestic customers
2.1.1. and 2.2.1. (by branches) DRILL SCREENS:
When the managers would like to know more details about these above
mentioned groups, they can click with using mouse, any number on the
screen. If they do it, after a minute they can get information any product or
service of the Bank, which take part in the choose group. For example: at
the liabilities side in over one year own funds group you can find the last
two days stocks of the following items: 1. capital base, 2. retained
earnings, 3. profit of the year, 4. profit of previous year,S. reserves etc.
Dr Gyorgy Virgula (+361) 111·8488, Budapest, Szabadsag tar 15., Hungary
317
'1i"''l'''=o~=,-"=""",,",,,,,""===-==,,,,,,,=-~·,,,o·.'E''''·'-"'"'--,.' ) ;;
These level of infonnation based on the general ledger balances of the
bank.
3. PROFIT AND LOSS ACCOUNT:
Main table: showing a week together, with colored changes column. There
are two version of this table: the first one is calculated the following
methods on cumulated basis (started the calculation on the 1st of January
and finished it on the current day, the second type is the monthly basis
calculation, which started on the first day of the month and do it until the
end of the month, and start it again. This two way of calculation makes the
managers able to comparing the changes of the profitability tendencies, to
comparing the average interest rates of the month to the whole year, and
emphasize for them the changes direction of the interbank interest rates
trends. These type of calculation offer a good tools for planning managers,
help them in a prognostic procedure. Average stocks and average interest
rates, their changes is a very important infonnation base during the
controlling and planing activity.
DRILL SCREEN OF PROFIT AND LOSS ACCOUNT
You can choose any number of the screen, and if you click on it with
mouse, you can find more infonnation, and the breakdown of them.
4. STRUCTURE OF PROFIT AND LOSS TABLE:
Interest income (for the forint (HUF) interest bearing assets)
On the drill screen behind of the main table the managers can find the
daily basis calculated average stocks of any type of interest bearing assets
Dr Gyorgy Virgula (+361) 111-8488, Budapest, Szabadsag tar 15., Hungary
318
in forint, and the income earned by it. So after a simple calculation we can
get the average interest rates of each of the products.
Interest expenses (for the HUF interest bearing funds)
Drill screen: like· in the above mentioned but show the data of the
liabilities side, calculate the average stocks of each type of deposit, and
you can see their cost also.
Interest income
Income (commissions) of services
Drill screen: Commissions earned by current account, documentary
transactions, EUROCARD project etc.
Cost of services
(For example the cost of money transfer)
Profit on services
Income of foreign currencies transactions (loans and money market deals)
Drill screen:interest income of FC loans
fees of FC loans
income of swap transactions
income of forward, and other future transactions
interest income of our FC deposit on money market
expenses of foreign currencies transactions (fees and interest paid)
Dr Gyorgy Virgula (+361) 111·8488, Budapest, Szabadsag tar 15., Hungary
319
Profit on Fe activity
Other net income
(Earning of given guarantees, leasings, investments etc.;)
Overhead expences
(Salaries, paid for used services, electricity etc .. )
Taxes
Provisions
(Minus with the value of the provisioned risk reserves for possible losses)
Net profit
5. MARGIN CALCULATION:
STRUCTURE OF mE MAIN TABLE:
BASIC POINTS:
The table is calculated on the FORINT (HUF) actives base, without handle
information from the foreign currency transactions. It is necessary to
divide the activity for this two main part because of the following reasons:
* it is impossible to compare the profitability of the forint activity to the
deals in foreign currency, the forint (domestic currency) is not convertible
* for any economist of the world is necessary to calculate the profitability
of each products by each type of currency, because of their different
interest rate basis, different expectation of their changes, several trends of
Dr Gyorgy Virgula (+361) 111·8488, Budapes~ Szabadsag tar 15., Hungary
320
!""[ ____ ~- ~'~~3C~~',~~~~-c~-_ --
,
exchange rate's changes, the macroeconomie backgrounds are not the
same etc.
* high inflation rate (15 to 30 %) in Hungary in the last few years
* difficult giving prognosis for a current changes interest rates
and for the forint devaluation during the business year
This table is available in cumulated and in monthly basis also.
Like in all of the other tables you have a possibility to go back until the 1st
January in last year. During this period you can see all of the details, and
you can use the drill screen possibility for having more information also.
The system offer to you to go back by week or by day as you like. In the
last comparing (changes) column you can find the differences between the
last day (as you wanted it before) and with the previous day of it.
ROW TITLES AND INFORMATION:
I.Total of interest bearing assets (average stocks)
Drill screen:
First column:
You can find any product of the bank in domestic currency: all type of
loans, statutory reserves, domestic interbank transactions, bills of trade,
bonds and securities etc.
Second column:
The average stocks of the above mentioned activities
Third column:
Dr Gyorgy Virgula (+361) 111.8488, Budapest, Szabadsag tar 15., Hungary
321
~'l ",-",~-""""'~"'?'r~-'~~""-"'---"'""'--""-~~":.-'~_'"'--'--"'_-_-:.-_-'
;-:~
:) .,
The income of the each product
II. Total interest income
Drill screen gives the same information like the previous one.
ID. Average interest rate (0/0)
IV. Total of interest bearing funds (average stocks of liabilities)
Drill screen: structure is the same like in the total interest bearing assets
side but giving information about the liabilities
v. Total interest expenses
VI. Average interest rate of funding (0/0)
VII. Net interest margin (0/0)
VIII. Spread (0/0)
5. TURNOVERS
5.1. About the active, asset side
5.2. About the passive (shareholders'" funds and liabilities)
portfolio
In this two tables the managers can follow with attention all of the bank's
products, seeing their turnover on monthly and cumulated basis. The
structure of the table give a possibility to compare the actual stock and
Dr Gyorgy Virgula (+361) 111-8488, Budapes~ Szabadsag tar 15., Hungary
322
-.-, -.- --.-. - ~~-.. --: .- -:'/':::~~'.~"~"~~~J .• __ ~~_-:'Y_'
turnover of them. You can find the answer for the following question in
this table: What is the changes direction of any products? ,
6. FINANCIAL PLAN UTILIZATION
Every table has an extra column with plan-data and utilization in % format.
VU. DEVELOPING PLAN OF INTER EUROPA BANK'S EIS
7.1. MODIFICATION OF TIlE CURRENT STRUCTURE:
* giving a possibility for moving between the tables without always using
the main menu
* there is an automatic calendar on the screen for making going back in
the period on a smoother way
* giving new structure of tables for making proper plan analysis in any part
of the system
* offer a possibility to using graph without heavy tables
7.2. SCREEN DESIGNER
* offering a tool for the EIS developer manager and make her able to set
up new tables automatically
* giving possibility for the new table to show them on the screen with
using this tool
Dr Gyorgy Virgula (+361) 111-8488, Budapest, Szabadsag tar 15., Hungary
323
1 ,
.1 ! I L
* setting up a well organized SAS method set, which help you to tell the
system how to calculate any of the information level of the new tables,
* showing a table set about the possible information base from the MIDAS
data base
* new graph handling methods as a part of a screen designer tools: after
testing you can directly input it for the top managers screen automatically
After all we need time and time for realization of the above mentioned
dreams.
I hope and 1 am sure that in SEUGI'95 we will see this new application as
a part of Inter Europa Bank's Executive Information System. And finally
we just need good luck.
Dr Gy6rgy Virgula (+361) 111-8488, Budapest, Szabadstg tar 15., Hungary
324
." '-. , "_" _ "_' ~~ • ,_'_"',_~: ~ __ ~ ~ ." ~ '.~ • __ J
J _ ." ,. __ • _ _ ~. ~_ .. ,.. ,,,-·,_c·~~v_~_~ ~_ •. _~ ___ .;; ____ . __ .. _ ~~ ,. ~~'-.
top related