Экономические науки/1. Банки и банковская система
Master of 1 course
of the Institute of World Economy and Finance
Bokova Natalia
Volgograd State University, Russia
Theoretical aspects and analysis of investment activity of commercial
banks
In foreign practice,
the term "investment" refers to, as a rule, the funds invested in
securities for the long term. This is a theoretical reflection of real-world
economic relations, as investment vehicles in a market economy is directly
related to the securities market. The investment activities of banks is viewed
as a business to provide two types of services. One of them - increase in cash
through the issue or placement of securities on their primary market. Other -
organizing virtual meetings of buyers and sellers of existing securities on the
secondary market, it is a function of brokers and / or dealers. Investments are
understood and how all the areas of commercial bank resources, and as
operations to place funds for a specified period for the purpose of earning
income. In the first case, to investment include the entire range of commercial
bank active operations in the second - his urgent component.
Bank investments have
their own economic content. Investment activity in the microeconomic aspect -
from the point of view of the bank as an economic entity - can be regarded as
an activity during which he acts as an investor, investing their resources for
a period of creation or acquisition of real and financial assets purchase to
extract the direct and indirect revenues. However, investment activity of banks
is another aspect related to the implementation of macro-economic role as
financial intermediaries. As such, banks are helping meet the needs of economic
agents in investments. Demand for them in a market economy appears in the
monetary form. In addition, banks make it possible to transform savings into
investments and savings. Thus, the investment activity of credit institutions
has a dual nature. Considered from the perspective of the economic entity
(bank), it aims to increase its revenues. The effect of the investment activity
in the macro-economic aspect is to achieve growth of social capital. It should
be noted that from the standpoint of economic development investment activity
of banks includes investments that contribute to income generation, not only in
the bank level, but also society as a whole (in contrast to those forms of
investment, which, providing an increase in income of a particular bank,
involve redistribution social income). Therefore, in terms of macroeconomics,
the criteria for investment is a productive orientation of the bank's
investments. Classification of forms of investment activity of commercial banks
in the economic literature is somewhat different from the standard, which is
determined by the peculiarities of the investment activity of commercial banks.
Bank investments are divided into the following groups: - in accordance with
the object of investing: investing in the real economic assets (real
investment) and investments in financial assets (financial investments).
Bank investments can
also be differentiated and more specific targets: investments in investment
loans, term deposits, shares and equity participation in securities, real
estate, precious metals and stones, collectibles, and intellectual property
rights, etc .; - Depending on the purpose of investment bank investment can be
direct, aimed at ensuring the direct control of the object of investment, and
portfolio, not intended to direct investment object management, and carried out
based on the receipt of income in the form of a flow of interest and dividends
or by increasing the market value of assets ; - Intended investment can be
divided into investments in the creation and development of enterprises and
institutions and investments, not related to the participation of banks in
economic activity; - On the sources of funds for investment distinguish the
bank's own investments committed for its own account (dealer operations), and
the client, undertaken by the bank for the account and on behalf of its clients
(brokerage); - On terms of investments may be short-term (up to one year),
medium term (three years) and long term (over three years). Investments of
commercial banks are classified as at risk species, region, industry, and other
attributes.
Under the investment
policy of the banks means a series of measures aimed at the development and
implementation of investment portfolio management strategy to achieve optimal
combination of direct and portfolio investments in order to ensure normal
operations, increase the profitability of operations, maintain an acceptable
level of riskiness and liquidity balance. The most important element of
investment policy - Development strategies and management tactics Monetary Bank
portfolio that includes, along with other elements of its investment portfolio.
Investment portfolio
(portfolio investment) - a set of funds invested in securities by legal
entities and acquired by the bank and placed in the form of term deposits of
other banking and financial institutions, including funds in foreign currency
and investments in foreign securities. The criteria for determining the
structure of the investment portfolio are the profitability and riskiness of
operations, the need to regulate the liquidity of the balance sheet and asset
diversification.
Different principles
and approaches to investment portfolio management companies and banks. The most
common is the principle of gradation maturity securities, which allows arriving
from redemption (or sold) securities funds to reinvest in securities with a
maximum maturity. The main content of the Bank's investment policy is the
definition of terms of securities, most suitable for investment, optimize
investment structure of the portfolio at any given time. In this part of the
banks (mainly medium and small) to carry out investment transactions, not being
guided by a pre-defined and approved the plan. There are banks, where employees
engaged in investment activities, guided by officially approved by the bank's management
installations in respect of the investment policy. At the same time the bank's
board makes it certain changes taking into account the prevailing market
conditions. In any bank, irrespective of the location of the country, both in
the implementation of credit and investment operations focuses on the problem
of liquidity of balance and control of limit values issuing loans. At the same time the overall
objectives and the "rules of the game" are basically the same, the
difference lies in the art of organization and operations. Similarly, the
problems faced by banks in the implementation of investment operations.
However, there is a fairly diverse set of techniques and measures used to
address them. The investment policy of commercial banks involves the formation
of the investment activity of the system of targets, selection of the most
effective ways to achieve them. In the organizational aspect, it appears as a
set of measures for the organization and management of investment activities
aimed at ensuring the optimum volume and structure of investment assets,
increase their profitability at an acceptable level of risk. The most important
elements of interrelated investment policy are tactical and strategic
management processes of the bank's investment activities. Under the investment
strategy to understand the definition of long-term objectives of investment
activities and ways to achieve them. Her subsequent detailing is carried out in
the course of tactical management of investment assets, including the
production of short-term operational objectives and the means of their
implementation. Development of investment strategy is thus the starting point
of the investment management process. Formation of investment tactics going on
within specified areas of investment strategy and focused on their
implementation in the current period. It provides for the definition of the
scope and composition of specific investments, development of measures for
their implementation, and, where appropriate, - drawing up models of decision
management solutions to the investment project and specific mechanisms for the
implementation of these decisions. Thus, banks are buying certain types of
securities are seeking to achieve certain goals, the main of which are:
- The security
of investments;
- Return on
investment;
- Increase
investments;
- The liquidity of
investments.
Under the investment
security is understood as the invulnerability of investments from various
shocks in the stock market, the stability of income and liquidity. Safety is
always achieved at the expense of profitability and growth investments. The
optimum combination of safety and profitability achieved by careful selection
and constant revision of the investment portfolio.
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