In this article, we will look at what investment banking is, its main goals, as well as the types and forms of investments.
The investment activities of banks are carried out in order to make a profit, maintain a sufficient level of liquidity, as well as to diversify assets. It implies purposeful work on education and capital growth.
At the same time, banks provide significant support to the development of relevant projects and innovative technologies around the world. That is why the role of banks in the development of investment activity is high. Bank investments bring benefits to all participants, banks - in the form of additional profit, and enterprises - in the form of a source of growth.
Bank investments are investments of funds for a certain, usually long-term, period in various instruments:
In a narrow sense, banking investments consist in investing resources, both own and borrowed, in securities.
In addition to investing in the development of other enterprises, financing innovation objects, creating a portfolio valuable papers, banks invest in improving their own business, including the opening of branches, the development of advanced technologies, new products and services.
The main thing in the process of managing the investment activities of banks is to extract maximum income which includes:
Growth or decline in the investment activity of banks depends on the availability of the necessary financial resources.
Sources of investment can be:
The main forms of investment include real and financial:
Despite the fact that the statistics of the investment activity of banks are usually not disclosed to a wide audience, it is known that financial investments are most often based on the acquisition and sale of securities. To create an effective portfolio, it is necessary to identify resources, conduct preparatory work to search for optimal investment objects, develop a strategy and development program.
Investment banking is aimed at solving a number of problems:
The investment policy of the bank means a set of actions to develop and implement the most effective investment management strategy.
The planning of investment activities by banks is carried out to obtain the following results:
IMPORTANT! When working on investment policy, it is necessary to identify the range of securities that are optimal for investing capital and creating a balanced portfolio in terms of maturity.
Planning activities in the field of investment is based on an analysis of possible ways of distributing finance and determining the most appropriate options that allow you to get the highest profitability. Good investment planning requires comprehensive assessment investment activities of the bank and the availability of reliable information.
In the process of developing strategic and tactical decisions, it is necessary to take into account:
The main criteria for investment planning are profit and risk level, as well as asset diversification and liquidity management. Exist different methods portfolio management of investments, one of which is a stepwise approach to the redemption of securities. This method makes it possible to reinvest funds (see) received from investments in securities or their sale.
Banks implement not only their own investment policy, but also act as intermediaries: agents or commission agents. They help clients to get additional profit, while not diverting their own funds.
The main investment banking services include:
Assistance to clients is carried out in the form of consulting, search for sources of financing, project evaluation, identification of attractive instruments. The price for the provided service depends on its type and the policy of a particular bank.
Investors are provided detailed instructions with clarifying photos, appropriate training is provided for independent asset management. For more details, watch the video in this article.
As already mentioned, statistics on the investment activities of banks are not published, therefore, data can be used as an acquaintance with the activities of the bank. rating agencies and specialized companies that provide general financial information.
Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.
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Introduction
The investment activity of commercial banks is of strategic importance not only for a particular element of the banking sector, but also for the country as a whole. Solving the problem of increasing the efficiency of investment activities by commercial banks is associated with economic growth, raising the living standards of the population, ensuring socio-economic stability and economic security. A rational investment policy will also ensure the effective development of the commercial bank itself. That is why consideration of the topic "Investment activity of commercial banks" is relevant today, in the context of the increasing role of the banking sector.
The subject of the study is the investment activity of commercial banks aimed at the development of investment in the banking sector. commercial bank investment financial
The purpose of this course work is a comprehensive study of the investment activities of commercial banks, as well as identifying the problems of investment activities of Russian commercial banks and ways to overcome them.
Based on the goal, the following tasks are defined:
To reveal the essence of the investment activity of a commercial bank.
· Consider the classification and forms of investment activities of commercial banks.
· To study the investment policy of commercial banks.
In the course of writing the term paper, research methods were used: the method of analyzing the economic literature on the theoretical and methodological foundations of the study of the investment activities of commercial banks, methods economic analysis, synthesis.
· The theoretical and methodological basis was the federal laws of the Russian Federation, magazines, newspapers, textbooks of domestic specialists in the field of banking, finance, data from electronic sites.
Chapter 1. Economic bases of investment activity of commercial banks
1.1 The essence of the investment activity of a commercial bank
Modern commercial banks- these are banks that directly serve the enterprise and organizations, as well as the population - their customers. Commercial banks are the main link banking system. Regardless of the form of ownership, commercial banks are independent subjects of the economy.
The main purpose of the functioning of commercial banks is to maximize profits. Commercial banks act primarily as credit institutions, which, on the one hand, attract temporarily available funds farms, and on the other hand, they satisfy various financial needs enterprises, organizations and population.
According to banking legislation, a bank is a credit organization that has the right to raise funds from individuals and legal entities, place them on its own behalf and at its own expense on the terms of repayment, payment, urgency and carry out settlement operations on behalf of clients. Thus, commercial banks comprehensive service clients, which distinguishes them from special credit organizations non-banking type, performing a limited range financial transactions and services.
The activity of a commercial bank is determined by the following functions:
Accumulation (raising funds in deposits);
Placement of funds (investment function);
Settlement- cash service clients.
Investment is the investment of capital in sectors of the economy at home and abroad for the purpose of making a profit. Based on this definition, investment activity is the investment of funds, investment or the total activity of investing money and other values in projects, as well as ensuring the return on investment. But it is important to note that investments are understood as all directions of placement of resources of a commercial bank and operations for the placement of funds for a certain period in order to generate income. In the first case, investments include the entire range of active operations of a commercial bank, in the second, its term component.
Bank investments have their own economic content. Investment activity in the microeconomic aspect - from the point of view of the bank as economic entity- can be regarded as an activity in which he acts as an investor, investing his resources for a period of time in the creation or acquisition of real and purchase financial assets to extract direct and indirect income.
At the same time, the investment activity of banks has another aspect related to the implementation of their macroeconomic role as financial intermediaries. In this capacity, banks help meet the needs of business entities for investment. Demand for them in terms market economy occurs in the form of money. In addition, banks provide an opportunity to turn savings and savings into investments.
The indicators of investment activity of commercial banks are:
Volume of investment resources of commercial banks;
Index of real value of investment resources;
Volume of bank investments;
The share of investment investments in the total assets of banks;
Structural indicators of banking investments by objects of their application;
Performance indicators of banks' investment activities, in particular, growth in assets and growth in profits based on the volume of investments;
Indicators of alternative profitability of investing in the manufacturing sector compared to investing in profitable financial assets.
The choice of optimal forms of investment by commercial banks in these conditions, taking into account various factors affecting their activities, involves the development and implementation of investment policy.
The economic interests of banks, arising from the essence of these institutions as commercial structures, are to ensure the profitability of their operations while maintaining their liquidity and reliability. Banks work mainly not with their own, but with borrowed and borrowed resources, so they cannot risk their clients' funds by investing them in large investment projects if this is not provided with appropriate guarantees. In this regard, when developing an investment policy, commercial banks should always proceed from real risk assessments, economic efficiency, financial attractiveness of investment projects, the optimal combination of short, medium and long-term investments. At the same time, the existing investment system is not only an internal affair of the bank itself. In accordance with the basic principles of banking regulation, an integral part of any supervisory system is an independent review of the bank's policy, operations and procedures related to the issuance of loans and capital investment, as well as the ongoing management of loan and investment portfolios.
Consequently, commercial banks must clearly work out and formally fix the most important activities related to the organization and management of investment activities. In essence, we are talking about the development and implementation of a sound investment policy.
1.2 Classification and forms of investment activities of commercial banks
Both in the economic literature and in banking practice, the forms of investment activity of commercial banks are classified on the basis of general criteria for systematizing investment types. However, it seems possible to single out a number of features of banking investment activity, which consists in the following classification of its types:
Real investments;
Financial investments;
Industrial investment;
Investments aimed at the bank's own development.
The most demanded forms of investment activity of modern commercial banks in Russian banking practice are production and financial investments.
Production investments made through the provision of investment loans, as well as various ways of participating in the financing of investment projects, represent a form of the bank's participation in the capital costs of business entities. Investing in an investment project is economically very beneficial for the bank - it receives not only profit, as in lending, but also the opportunity to participate in the management of an enterprise (both created and modernized). This opportunity arises for the bank as a result of its acquisition of the right fractional ownership(block of shares) on the property of the enterprise or the conclusion of an agreement on the participation of management, on the basis of which, among other things, the project is invested. The invested enterprise also benefits from cooperation with the bank - receiving the necessary resources on the terms of the bank's participation, it also receives the interest of this credit institution in the successful implementation of the project, which provides comprehensive assistance in its implementation. However, it should be noted that bank control over the invested enterprise may also have negative consequences due to the fact that a significant concentration of property in the bank manufacturing enterprises reduces reliability financial system, increasing banking risks. To prevent such negative consequences, the regulatory legal acts of the Russian Federation significantly restrict the participation of commercial banks in the activities of enterprises. These restrictions are related to the following provisions:
The ban on banks to engage in production, insurance, trading activities, established at the legislative level;
Limiting the participation of commercial banks in the capital of enterprises, according to which banks can only have up to 25% of their own funds in it;
Restriction to 10% of bank capital of investments in the acquisition of shares of one business entity;
Regulations of the Central Bank of the Russian Federation, limiting the bank's participation in financial and industrial groups.
Financial investments of commercial banks, in contrast to industrial investments, are mainly aimed at investing through securities and investment loans. With the development of the Russian stock market investments in securities, including debentures(bills, government and municipal securities, certificates of deposit, etc.), equity securities represented by shares of enterprises, as well as derivative securities, are becoming an increasingly popular form of investment. Modern Russian banking practice shows that commercial banks carry out this species investments, both at the expense of own funds, and at the expense of funds and on behalf of investors. At the same time, in order to bind excess liquidity, the Central Bank uses deposits in which, in particular, commercial banks make financial investments.
Another form of financial investment - an investment loan - is based on the provision of a targeted long-term loan aimed at production purposes, on the conditions characteristic of lending (payment, maturity, repayment). However, unlike productive investments, the bank does not acquire the right to a joint economic activity or shareholding. Investment loans are characterized by high risks, to reduce which banks impose a number of additional requirements on borrowers - financial guarantees from reliable banks or the government, highly liquid collateral.
Due to the complexity of obtaining industrial investments, practically the only form of obtaining the necessary financial resources is real investments, which are capital investments in production activities. the federal law“Investment activities in the Russian Federation carried out in the form of capital investments include investments made in the form of new construction, reconstruction, modernization of production, technical re-equipment of existing enterprises. Accordingly, real investments make up the following groups:
Mandatory investments aimed at ensuring that the enterprise can continue its activities (for example, changing the working conditions of the enterprise's employees to the relevant standard indicators established by law; pursuing the environmental policy of the enterprise, etc.);
Investments aimed at improving the efficiency of the enterprise and, accordingly, its competitiveness, with the aim of creating conditions for reducing production costs, carried out through the modernization of equipment, improvement of applied technologies, labor organization;
Investments aimed at expanding production, allowing the enterprise to increase its volumes within the existing production;
Investments aimed at the organization of new projects, as a result of which the production of completely new products or services is organized.
In addition, real investment is carried out in the form of investments in real estate, precious metals, intellectual and property rights. The income from investments in real estate is made up of both an increase in market value and rent. However, this type of investment is effective for large banks, because. has a significant payback period and, accordingly, requires significant long-term sources for investment.
The choice of optimal forms of investment by commercial banks in these conditions, taking into account various factors affecting their activities, involves the development and implementation of investment policy.
1.3 Investment policy of commercial banks
The economic interests of banks, arising from the essence of these institutions as commercial structures, are to ensure the profitability of their operations while maintaining their liquidity and reliability. Banks work mainly not with their own, but with borrowed and borrowed resources, so they cannot risk their clients' funds by investing them in large investment projects if this is not provided with appropriate guarantees.
In this regard, when developing an investment policy, commercial banks should always proceed from real assessments of risk, economic efficiency, financial attractiveness of investment projects, the optimal combination of short, medium and long-term investments.
Investment policy is the activity of a commercial bank, commensurate with the degree of risk, based on active operations with securities and aimed at ensuring the profitability and liquidity of bank funds in general.
The investment policy of commercial organizations should follow from the strategic goals of their business plans, i.e. from a perspective, and ultimately should be aimed at ensuring financial sustainability not only now, but also in the future.
When developing an investment policy, it is necessary to adhere to:
1) the focus of the investment policy on achieving the strategic plans of enterprises and their financial stability;
2) taking into account inflation and risk factors;
3) economic justification of investments;
4) formation of the optimal structure of portfolio and real investments;
5) ranking projects and investments according to their importance and sequence of implementation based on available resources and taking into account the involvement of external sources;
6) choice of reliable and cheaper methods of financing investments;
When these principles are taken into account, many mistakes and miscalculations can be avoided when developing the investment policy of a commercial organization.
The investment policy serves to determine the most priority areas for investing investments that affect the efficiency of the enterprise itself, as well as the country's economy as a whole.
For the development of investment policy and its implementation commercial organizations create special investment departments in the management structure, which should have at their disposal employees who are well versed in various issues investment program. Such specialists, in turn, should be able to independently analyze the market for purchased securities, determine whether a given class and issue of securities is consistent with the goals of the bank, build yield curves, thereby ensuring careful regulation of the investment activities of a commercial bank.
In the management structure commercial bank the activity of the investment department is subordinate. Priority is usually given to the lending and primary reserve departments. However, the management of a commercial bank is a group activity in which all operations must be carried out in concert and in accordance with the investment policy established by the board of directors.
As it changes economic conditions the investment policy of a commercial bank is reviewed and updated based on periodic reports and forecast data from the investment departments.
The state partially regulates the investment policy of banks in a legislative manner. From this follows the need for state control over the investment activities of banks in the banking sector.
Regulators require banks to formulate their investment policy in a written document, highlighting the following:
The degree of risk of late redemption of the security that the bank intends to accept, while all securities must be investment, not speculative.
Planned terms of circulation of securities to maturity, as well as the degree of liquidity of all acquired securities.
The goals that the bank wants to achieve with its investment portfolio.
The degree of diversification of the investment portfolio with which the bank intends to reduce risk.
Inspection authorities carefully analyze the bank's investment portfolio so that speculative goals do not crowd out more important investment tasks in the bank's investment policy.
The effectiveness of the investment policy is evaluated by the payback period of investments, which is determined on the basis of business plan data and preliminary calculations based on the justification of investment projects.
Chapter 2. Organization of investment activity by example savings bank Russia
2.1 general characteristics Savings Bank of the Russian Federation
Sberbank of Russia is largest bank Russian Federation and CIS countries. The founder and main shareholder of Sberbank of Russia is the Central Bank of the Russian Federation, which owns 50% of the authorized capital plus one voting share. Other shareholders of the Bank are international and Russian investors. The Bank's ordinary and preference shares have been listed on Russian stock exchanges since 1996. American Depositary Receipts (ADRs) are listed on the London Stock Exchange, admitted to trading on the Frankfurt Stock Exchange and on the OTC market in the United States.
Founded in 1841, Sberbank of Russia today is the leader of the Russian banking sector in terms of total assets. The Bank is the main creditor of the Russian economy and holds the largest share in the deposit market. As of January 1, 2013, Sberbank accounted for 28.9% of total banking assets, 45.7% of deposits individuals, 33.6% corporate loans and 32.7% retail loans. The capital of Sberbank is 1.7 trillion rubles, which corresponds to 27.4% of the total capital of the Russian banking system.
Sberbank is a modern universal commercial bank that meets the needs of various customer groups in a wide range of banking services. Sberbank of Russia serves individuals and legal entities, including large corporations, small and medium-sized businesses, as well as state-owned enterprises, constituent entities of the Russian Federation and municipalities. More than 100 million individuals (more than 70% of the Russian population) and about 1 million enterprises (out of 4.5 million registered legal entities in Russia) use Sberbank's services.
Sberbank provides retail clients with a wide range of banking services, including deposits, various types of loans ( consumer loans, car loans and mortgages), as well as bank cards, Money transfers, bank insurance and brokerage services. All retail loans are issued using the "Loan Factory" technology, created for efficient assessment credit risks and ensuring the high quality of the loan portfolio. Sberbank is the largest issuer of debit and credit cards. joint bank, created by Sberbank and BNP Paribas, is engaged in POS lending under the Cetelem brand, using the concept of "responsible lending".
Sberbank of Russia serves all groups of corporate clients, with small and medium-sized companies accounting for more than 20% of the Bank's corporate loan portfolio, the rest is lending to large and largest corporate clients. The Bank also provides deposits, settlement services, design, trading and export financing, money management services and other core banking products. The integration of Troika Dialog's business, which was renamed Sberbank Corporate & Investment Banking (Sberbank CIB), enabled Sberbank to offer clients highly professional financial advice and a choice of investment strategies, including highly structured investment banking products, ECM, DCM, M&A, as well as transactions on global markets.
Sberbank of Russia provides banking services in all 83 constituent entities of the Russian Federation, having a unique branch network, which consists of 17 territorial banks and has more than 18,400 branches. In addition, the Bank provides services through remote service channels - one of the world's largest networks of ATMs and self-service terminals (about 68,000 devices). Sberbank is also actively developing its Mobile Bank and Sberbank Online@yn applications, with an impressive customer base of more than 9.4 million and 5.4 million active users, respectively.
AT last years Sberbank has significantly expanded its international presence. In addition to the CIS countries (Kazakhstan, Ukraine and Belarus), Sberbank is represented in nine countries of Central and of Eastern Europe(Sberbank Europe AG, formerly VBI) and in Turkey (DenizBank). The acquisition of DenizBank was completed in September 2012 and was the largest acquisition in the Bank's 170-year history. Sberbank of Russia also has representative offices in Germany and China, a branch in India, managed by Sberbank Switzerland AG.
2.2 The main directions of the investment policy of the Savings Bank of Russia
The Savings Bank of the Russian Federation is one of the largest banks in the country and, in a number of ways, economic indicators occupies a leading position in the credit system.
Savings Bank carries out the following banking operations:
Attracts and places funds of legal entities and individuals;
Opens and leads bank accounts individuals and legal entities, carries out settlements on behalf of clients, including correspondent banks;
Collects cash, bills, payment and settlement documents and provides cash services to legal entities and individuals;
Buys and sells foreign currency in cash and non-cash forms;
Attracts deposits and places precious metals;
Issues bank guarantees.
In addition to the banking operations listed above, the Bank carries out the following transactions:
Issues guarantees for third parties, providing for the fulfillment of obligations in cash;
Acquires the right to demand from third parties the fulfillment of obligations in cash;
Confidentially manages cash and other property under an agreement with individuals and legal entities;
Carries out transactions with precious metals and precious stones in accordance with the legislation of the Russian Federation;
Leases individuals and legal entities special premises or safes located in them for storing documents and valuables;
Implements leasing operations;
Provides brokerage, advisory and information services.
The Bank is entitled to carry out other transactions in accordance with the legislation of the Russian Federation.
The investment policy of NPF Sberbank adheres to a moderately conservative investment strategy aimed at preserving capital and its long-term growth with a moderate level of risk. The investment of pension assets in the Fund is carried out through management companies with a reliability rating of at least AA, which are selected on the basis of a tender and a decision of the Fund's Council.
In order to preserve and increase pension assets, the investment activity of the Fund is based on clear and precise investment principles:
1. Ensuring safety is the fundamental principle of the Fund's activity, which ensures the confidence of our clients in the stable receipt of a pension, regardless of the situation in the economy;
2. Ensuring profitability, diversification and liquidity of investment portfolios -- The Fund strives not only to preserve, but also to increase assets to ensure a decent future for our clients;
3. Taking into account the reliability of securities - we never forget about the risks that arise when investing assets, in order to minimize them, the Fund complies with legal restrictions on the placement of pension reserves and investment of funds pension savings, every quarter the Fund reviews the investment portfolio in the direction of industries and companies with better dynamics. In order to minimize risks, the Fund quarterly coordinates the List of Issuer Companies included in the investment portfolio with OJSC Sberbank of Russia;
4. Information openness of the process of investing pension assets -- in order to achieve mutual trust between the Fund and its clients, all the main indicators NPF activities Sberbank are published in the public domain on the website;
5. Transparency of the process of investing pension assets for state, public supervision and control bodies, a specialized depository - the Fund's activities are constantly monitored Federal Service on financial markets and an independent organization - Sberbank Special Depositary LLC, which exercises daily control over the composition and structure of pension reserves and pension savings, as well as compliance with investment declarations by the Fund's management companies;
6. Professional management of the investment process.
The NPF of Sberbank, adhering to the established legal restrictions and striving to achieve the set goal, when investing pension savings and placing pension reserves, uses the following benchmark (synthetic index): 20% of shares, 80% of fixed income instruments (bonds, deposits).
In practice, this means the following: the share of shares in investment portfolios is limited to the amount of fixed income that the Fund receives from investing in bonds and bank deposits. The return on investments in liquid stocks included in the top-level quotation lists may vary from year to year, but over long periods of time it exceeds the return on investment in bonds. Briefcase financial instruments with fixed income (bonds, deposits) allows you to receive a constant coupon / interest income, as well as market income. Coupon/interest income is determined by the issuer and represents a constant component of growth. Market income depends on the situation in the bond market.
In terms of pension savings, a number of specific restrictions are imposed on operations. In particular, the investment portfolio of shares to a greater extent consists of "blue chips", which does not include a number of issuers acceptable for the placement of pension reserves (for example, Gazprom, Rosneft and most of the metallurgical companies).
Due to its leading positions in the banking system and based on the tasks it solves, Sberbank of the Russian Federation is the founder of a number of other credit - financial institutions: Industrial commercial "AvtoVAZbank", Vneshtorgbank of the Russian Federation, Corporation "Housing Initiative", financial and trading company "Sovfintrade", International Moscow Bank, etc. In addition, Sberbank of the Russian Federation is a member of the Moscow Interbank Currency Exchange, Moscow and St. Petersburg stock exchanges, the Association of Savings Banks and the Association of Russian Banks, the International Institute of Savings Banks (Switzerland), a number of societies and associations for the dissemination plastic cards(Association VISA International, Great Britain), Society for International Interbank Financial Telecommunications - SWIFT (Belgium).
2.3 Analysis of the investment activity of Sberbank of Russia
Sberbank of Russia is the oldest and largest enterprise in the national banking sector. Thanks to my position. Sberbank implements a number of government investment and social programs. By 2011, Sberbank significantly increased its investments in the real sector of the economy from 495.0 billion rubles to 710.1 billion rubles, which is 82.3% of the total balance of loan debt. The increase in the needs of this segment in credit resources allowed the bank to expand the volume of operations and strengthen cooperation with large enterprises, federally significant and structures, exporters and importers, as well as enterprises of the most investment-attractive industries.
In 2011, there was an increase in loan debt in all industries: in industry by 52.7 billion rubles to 361.1 billion rubles ( specific gravity in the portfolio of legal entities decreased from 56.8 to 48.8%), in agriculture by 8.5 billion rubles to 31.3 billion rubles (the share remained unchanged - 4.2%). in construction by 2.1 billion rubles to 20.5 billion rubles (a decrease in the share from 3.4 to 2.8%). in trade and catering by 57.7 billion rubles to 148.6 billion rubles (an increase in the share from 16.7 to 20.1%). in transport and communications by 30.5 billion rubles to 69.6 billion rubles (growth from 7.2 to 9.4%).
The changes that have taken place in 2011 in the structure of investments in various industries indicate that Sberbank of Russia, being a nationwide bank, is not limited to lending to enterprises of the most highly profitable export-oriented enterprises in certain industries, but forms its portfolio in a balanced way in relation to all sectors of the economy giving priority to those projects that aim to shift the economy from a commodity export model to a model focused on sustainable economic growth based on domestic demand.
The Bank's customers and borrowers include the majority largest enterprises DIC of Russia.
Sberbank continued cooperation with OAO Gazprom and major oil companies: OAO Tyumenskaya oil company". OAO NK Rosneft. The volume of the oil company has been increased. OAO NES Rosneft. The volume of lending to enterprises of the Russian Aluminum Group (the largest aluminum producer in Russia) has been increased. OJSC "Siberian-Ural Energy Company". The bank's long-term cooperation with the enterprises of RAO "UES of Russia" and affiliated structures has been strengthened. Cooperation with the State Enterprise RVO "Zarubezhneft", FSUE PO "Sevmash" has begun. CJSC Sevmorneftegaz, as well as with the Financial and Industrial Group INTERROS, within which credit funds were provided for the implementation of the statutory activities of CJSC INTERROS ESTATE.
Significant amounts of credit resources were provided by the Federal State Unitary Enterprise All-Russian State Television and Radio Broadcasting Company to carry out its statutory activities and to replenish working capital, the bank continued cooperation with Acron, the largest producer of nitrogen and complex mineral fertilizers.
Sharply intensified competition in the Russian credit market from non-resident banks, mainly competitive advantage which became the interest and collateral policy, as well as the active replacement by Russian companies, incl. and borrowers of Sberbank of Russia, bond loans placed on Russian and foreign markets, demanded that the Bank take a set of measures to increase the attractiveness of loan products Sberbank of Russia for current and potential borrowers.
In order to strengthen the competitive position of Sberbank of Russia in the corporate lending market, as well as to fulfill the tasks of increasing the volume of the loan portfolio, the bank approved a number of regulatory documents aimed at liberalizing the conditions for lending to bank customers.
Financing investment and construction projects
The Bank is consistently implementing a strategy to increase the volume of long-term lending operations for enterprises in various sectors of the economy, by increasing the flexibility of lending conditions, expanding the product range, and taking into account the individual needs of the client.
Loan debt of Sberbank in terms of investment lending, project financing and financing of construction projects for 2011 increased in ruble terms by 1.6 times and reached 153.0 billion rubles by 2012, of which 88.7 billion rubles (58.0 %) and 2.2 billion US dollars (42.0%).
Chapter 3. Problems and prospects of investment activity of Russian commercial banks
3.1 Problems of investment activity of Russian commercial banks
At present, the financial resources of the Russian banking system are not enough to effectively support the real sector, meet the needs of all sectors of the economy - in particular, industry, which (unlike the banking system, characterized by the predominance of small and medium-sized banks) is highly concentrated. At the same time, the problem lies in the fact that in the current situation, banks do not effectively redistribute even the investment potential available to them.
As a result of the growth of disproportions between the development of the real and financial sectors of the economy, the prerequisites were formed not for involvement, but, on the contrary, for ousting banking capital from the real sphere. The current dependence of banks on the market of short money with the deterioration of the financial situation of enterprises and organizations in the real sector of the economy has led to the accumulation of crisis potential.
The rise in risks was the most important factor, which discourages the investment activity of banks, since with an increase in risks, the contradiction between the activation of investment and the task of maintaining the financial stability of banks increases, and the gap between interest rates increases (with an increase in the risk premium included in the interest rate) and the profitability of production.
The main factors hindering the activation of banking investment in production are:
1. High level of investment risk in the real sector of the economy;
2. Short-term nature of the existing resource base of banks;
3. Unformed market for effective investment projects.
The next risk factor is the discrepancy between the short-term liabilities of Russian banks and investment needs, as a result of which investment lending threatens the bank's liquidity. The calculation of the ratio of funds attracted and placed by banks indicates that short-term investments are the most balanced in terms of resource endowment. As the terms of investments increase, the gap between their volumes and sources of their financing increases up to five times for funds invested for a period of more than three years.
In essence, the market for investment projects has not been formed either. The proposed projects are characterized by insufficient elaboration. Banks are forced to independently deal with the entire range of work associated with project finance.
The main problems in the implementation of investment activities by commercial banks are high capital intensity and long payback periods for infrastructure projects, lack of transparency legal framework, providing protection for long-term investments, in particular concession legislation. No clear practice tax incentives for investors investing in capital-intensive and long-term projects. There is no systematic approach to investments, investments are fragmented. But according to leading experts of the banking sector, this problem can be solved. To do this, at the state level, it is necessary to determine the priorities of the areas of investment activity, stimulate the flow of funds through the provision of benefits and the creation of free economic zones.
The administrative burden placed on banks in connection with the diversion of resources to perform functions that are unusual for them is still significant. The procedure for capital consolidation (mergers and takeovers of credit institutions) is unreasonably complicated.
3.2 Prospects for development and ways to increase the investment activity of Russian commercial banks
The development potential of the banking sector has not been exhausted. The Government of the Russian Federation and the Bank of Russia proceed from the fact that the banking sector can and should play a more significant role in the economy.
Internal obstacles include poor management systems, weak business planning, poor management in some banks, their focus on questionable services and unfair commercial practices, and the fictitious nature of a large part of the capital of individual banks.
External constraining factors include high lending risks, unresolved a number of key problems of pledge legislation, limited resource capabilities of banks, primarily a shortage of medium-term and long-term liabilities, and an insufficiently high level of confidence in banks on the part of the population.
Besides, Russian economy in general and banking in particular, they have a relatively low investment attractiveness, as evidenced by the dynamics of investments, and, in relation to the banking sector, by the declining share of foreign capital.
A significant role in improving the efficiency of the current system of channeling credit resources into production is played by interest policy commercial banks, which should be built in such a way that the provision of investment loans is beneficial for both the bank and the borrower. important and promising areas lending in need of development are syndicated and mortgage loans in the manufacturing sector.
The use by banks of such a credit instrument for financing investments as leasing remains very limited. Meanwhile, leasing could become one of the most important tools for mobilizing investment resources and boosting investment activity, acting as a means of strengthening the ties between bank capital and production in conditions where the limited liquidity of enterprises hinders the large-scale development of production, and banks are faced with the need to diversify risks and investment areas to increase its reliability. For banks, leasing operations could be an attractive form of asset allocation. In this case, the bank can act as both a direct lessor and a party financing a leasing transaction.
The scale of such a form of investment activity of commercial banks as investments in securities and shares of enterprises is also insignificant. .
When investing in shares and equity securities of organizations (both residents and non-residents), banks mainly pursue investment goals. The share of securities purchased for investment in total investments ranges from 85 to 90% [APPENDIX No. 3]. The participation of banks in subsidiaries and dependent companies is growing. This reflects, first of all, the growth of banking investments in the development of the financial business itself, the growing trend towards integration financial structures.
Of great importance in increasing the investment activity of the banking system is the creation of a system for stimulating and insuring investments. One of the conditions for the provision of long-term loans by banks for investment projects with high credit and investment risks in the production sector is the availability of state guarantees. Differentiation of economic standards depending on the share of their investments in the real sector of the economy and preferential taxation.
Revision of the former regulatory system in accordance with the stated priorities economic policy involves changing the forms and methods of influencing the banking sector, restructuring the banking system, taking into account the tasks of implementing the investment functions of banks in the economy. The restructured banking system must meet the requirements high reliability, manageability and investment orientation, to guarantee the necessary level of supply of credit resources at interest rates affordable for the production sector.
Conclusion. Thus, one of the most important tasks of the banking sector is to increase the efficiency of the activities carried out by the banking sector to accumulate funds from the population and organizations and their transformation into loans and investments.
Conclusion
In the course of this work, the tasks set for me were achieved, the organization of the investment activities of commercial banks in the aggregate was considered, a single bank was considered using the example of the Savings Bank of Russia, problems and solutions were identified, the implementation of the investment activities of commercial banks. Based on everything, we can conclude:
The functions of a commercial bank are closely interconnected, that is, the accumulation of funds by the bank implies the further execution of the investment function. The instrument for implementing the latter is investment activity.
The choice of optimal forms of investment by commercial banks, taking into account various factors affecting their activities, involves the development and implementation of investment policy.
The economic interests of banks, arising from the essence of these institutions as commercial structures, are to ensure the profitability of their operations while maintaining their liquidity and reliability. Banks work mainly not with their own, but with borrowed and borrowed resources, so they cannot risk their clients' funds by investing them in large investment projects if this is not provided with appropriate guarantees.
After analyzing the activities of one of the leading banks in our region - Sberbank of the Russian Federation, I came to the conclusion that an effective investment policy plays an important role in the commercial success of its activities. In this regard, when developing an investment policy, commercial banks should always proceed from real assessments of risk, economic efficiency, financial attractiveness of investment projects, the optimal combination of short, medium and long-term investments. At the same time, the existing investment system is not only an internal affair of the bank itself. In accordance with the basic principles of banking regulation, an integral part of any supervisory system is an independent review of the bank's policy, operations and procedures related to the issuance of loans and capital investment, as well as the ongoing management of loan and investment portfolios.
Considering the investment activity of Sberbank of the Russian Federation, it can be said that a large share of the Bank's investment funds was directed to the acquisition of an investment portfolio. The Bank's managers have formed a portfolio that is sufficiently protected from investment risk, and in addition to this, they regularly audit it. Thus, the investment portfolio is constantly up to date. One of the trends in the development of this portfolio was an increase in the share of corporate shares in it.
Also in recent years, the Bank began to develop operations with investment property, which is an asset with a constant growth in value.
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Hosted on Allbest.ru
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COURSE WORK
Subject: “Money. Credit. Banks»
on the topic: "Investment activities of commercial banks"
Introduction
Chapter 1. Theoretical aspects investment activities of a commercial bank
1 Essence and forms of investment activity of a commercial bank
2 The process of investment activity of a commercial bank
2 Classification of operations of credit institutions with securities
Chapter 3. Problems of development of investment of commercial banks
2 Conditions and prospects for the development of investment activities of a commercial bank
Conclusion
Applications
Introduction
The investment activity of commercial banks is of strategic importance not only for a particular element of the banking sector, but also for the country as a whole. Solving the problem of increasing the efficiency of investment activities by commercial banks is associated with economic growth, raising the living standards of the population, ensuring socio-economic stability and economic security. A rational investment policy will also ensure the effective development of the commercial bank itself. That is why consideration of the topic "Investment activity of commercial banks" is relevant today, in the context of the increasing role of the banking sector.
This course work is devoted to an important problem for a developing economy - the investment activity of a commercial bank. The need to intensify the participation of banks in the investment process stems from the interdependence of the successful development of the banking system and the economy as a whole. On the one hand, commercial banks are interested in a stable economic environment, which is a necessary condition for their activities, on the other hand, the stability of economic development largely depends on the degree of stability and elasticity of the banking system, its effective functioning. However, since the interests a separate bank as commercial entities are focused on obtaining maximum profit with an acceptable level of risk, the participation of banks in investing in the economy is carried out only under favorable conditions.
mobilization by banks of funds for investment purposes;
provision of investment loans;
investments in securities, shares, equity participations (both at the expense of the bank and on behalf of the client).
The purpose of the course work is to get acquainted with the investment activity of the bank, on the basis of this, to identify the conditions and prospects for the development of the investment activity of a commercial bank in the real sector of the Russian economy.
In accordance with the goal, the main tasks of the work are:
to study the theoretical foundations of the investment activities of commercial banks;
Consider the formation and organization of the investment activities of commercial banks: pay attention to the formation of the investment portfolio of commercial banks and, directly, to the classification of operations conducted by commercial banks with securities;
To reveal problems and ways of development of investment activity of Russian commercial banks at the present stage of economic development.
Methodological basis The work was served by the works of the authors: Alekseeva D.G., Tavasieva A.M., Lavrushin O.I., Zharkovskaya I.O. and other sources. Also, for writing a term paper, such electronic sources as: Research and Information Department of the Bank of Russia. Annual review financial market for 2012 and website Central Bank RF.
CHAPTER 1. THEORETICAL ASPECTS OF THE INVESTMENT ACTIVITY OF A COMMERCIAL BANK
1.1 Essence and forms of investment activity of a commercial bank
Today, the banking system is one of the most important and integral structures of a market economy, in which commercial banks play a basic role. Commercial banks act primarily as specific credit institutions that, on the one hand, attract temporarily free funds from the economy, and on the other hand, satisfy the various financial needs of enterprises, organizations and the population through these borrowed funds.
Analyzing the essence of the investment activity of a commercial bank, let us turn to the consideration of some concepts that determine the theoretical basis of this issue.
Usually, investments are understood as long-term capital investments in any enterprise, business, project. However, the following definition should be considered more correct. Banking investments are the investments of banking resources on long term into securities in order to obtain direct and indirect income. The bank receives direct income from investments in securities in the form of dividends, interest or resale profits. Indirect income is formed on the basis of expanding the influence of banks on customers through the ownership of a controlling stake in their securities.
Investment activity is an investment and a set of practical actions for their implementation. The subjects of investment activity are investors, including banks, and the objects of investment activity are newly created and modernized fixed and current assets, securities, target cash deposits, scientific and technical products, other objects of property.
The main areas of participation of banks in the investment process in the most general view the following:
· mobilization by banks of funds for investment purposes;
· provision of investment loans;
· investing in securities, shares, equity participations (both at the expense of the bank and on behalf of the client).
These areas are closely related to each other. By mobilizing capital, savings of the population, other free funds, banks form their resources for the purpose of their profitable use. The volume and structure of operations for the accumulation of funds are the main factors influencing the state of the credit and investment portfolios of banks, the possibility of their investment activities.
The investment activity of banks is seen as a business of providing two types of services: increasing cash by issuing or placing securities on their primary market; connecting buyers and sellers of existing securities in the secondary market while acting as brokers and / or dealers.
The following indicators can be used as indicators of the investment activity of banks:
· the volume of investment resources of commercial banks;
· volume of bank investments;
· the share of investment investments in the total assets of banks;
· performance indicators of banks' investment activities, in particular, growth in assets per investment volume, profit growth per investment volume;
· indicators of the alternative return on investing in the manufacturing sector compared to investing in profitable financial assets.
It should be noted that from the point of view of economic development, the investment activity of banks includes investments that contribute to generating income not only at the level of the bank, but also of society as a whole (unlike those forms of investment activity that, while providing an increase in the income of a particular bank, are associated with the redistribution public income). Therefore, from the point of view of macroeconomics, the criterion for referring to investment activity is the productive orientation of the bank's investments.
The classification of the forms of investment activity of commercial banks in the economic literature and banking practice is carried out on the basis of general criteria for systematizing the forms and types of investments:
1.In accordance with the object of investment, investments in real economic assets (real investments) and investments in financial assets (financial investments) can be distinguished. Banking investments can also be differentiated by more specific investment objects: investments in investment loans, time deposits, shares and equity participations, in securities, real estate, precious metals and stones, collectibles, property and intellectual rights, etc.
Real investments, as a rule, make up an insignificant share in the total volume of bank investments. More typical for banks as financial and credit institutions are financial investments.
Banks' financial investments include investments in securities, term deposits with other banks, investment loans, shares and shares. As the stock market develops, investments in securities are becoming increasingly important: debt obligations (bills, certificates of deposit, state and municipal securities, other types of obligations issued by legal entities), equity securities (shares) and derivative securities.
2.Depending on the purpose of investments, bank investments can be direct, aimed at providing direct control the object of investment, and portfolio, carried out with the expectation of receiving income in the form of a flow of interest and dividends or due to an increase in the market value of assets.
3.According to the purpose of investments, it is possible to single out investments in the creation and development of an enterprise and organization and investments not related to the participation of the bank in economic activities.
Investments in the creation and development of enterprises and organizations include two types: investments in the economic activities of other enterprises and investments in the bank's own activities. The bank's investments in the economic activities of third-party organizations are carried out through participation in their capital expenditures, formation or expansion of the authorized capital. When participating in the authorized capital through the purchase of shares, shares, shares, commercial banks become co-owners of the authorized capital and acquire all the rights provided by law.
Investments in the bank's own activities include investments in the development of its material and technical base and improvement of the organizational level. Depending on the direction of investment, we can distinguish:
· investments that improve the efficiency of banking activities. They are aimed at creating conditions for reducing banking costs by improving technical equipment, improving the organization of banking activities, working conditions, staff training, research and development;
· investments focused on the expansion of banking services. Such investments involve expanding the resource and client base, increasing the range of banking operations, creating new divisions capable of providing the production of new types of banking services;
· investments related to the need to comply with the requirements of the authorities state regulation. These investments are made, if necessary, to meet the requirements of regulatory authorities in terms of creating certain conditions for banking activities.
4.According to the sources of funds for investment, a distinction is made between the bank's own investments made at its expense and client investments made by the bank at the expense and on behalf of its customers.
5.According to the terms of investments, investments can be short-term (up to one year), medium-term (up to three years) and long-term (over three years).
.Investments of commercial banks are also classified by types of risks, regions, industries and other characteristics.
Efficiency from investments in the development of the bank is achieved if, as a result of the costs incurred, it is improved financial condition. Determining the volume and structure of investments in own activities, carried out in the process of developing a bank's investment plan, should be based on accurate technical and economic calculations. Exceeding the required volume of investments may lead to liquidity imbalance, decrease in the bank's income base and decrease in the efficiency of banking activities.
1.2 The process of investment activity of a commercial bank
It is important to have an idea about the process of investment activities of commercial banks. The investment policy of commercial banks involves the formation of a system of targets for investment activity, the choice of the most effective ways to achieve them. In the organizational aspect, it acts as a set of measures for organizing and managing investment activities, aimed at ensuring optimal volumes and structure of investment assets, increasing their profitability with an acceptable level of risk. The most important interrelated elements of the investment policy are the tactical and strategic processes of managing the bank's investment activities.
Under the investment strategy understand the definition of long-term goals of investment activities and ways to achieve them. Its subsequent detailing is carried out in the course of tactical management of investment assets, including the development of operational goals for short-term periods and the means of their implementation. The development of an investment strategy is thus the starting point of the investment management process.
The formation of investment tactics takes place within the framework of the given directions of the investment strategy and is focused on their implementation in the current period. It provides for determining the volume and composition of specific investment investments, developing measures for their implementation, and, if necessary, compiling a model for making managerial decisions on exiting an investment project and specific mechanisms for implementing these decisions.
Banks, buying certain types of securities, seek to achieve certain goals, the main of which are:
· investment security;
· return on investment;
investment growth;
· liquidity of investments.
Security is always achieved at the expense of profitability and investment growth. The optimal combination of security and profitability is achieved by careful selection and constant revision of the investment portfolio.
In addition to general goals, the development of an investment policy in accordance with the economic development strategy chosen by the bank provides for taking into account specific goals, which are:
· ensuring the safety of banking resources;
· expansion of the resource base;
· diversification of investments, the implementation of which reduces the overall risk of banking activities and leads to an increase in the financial stability of the bank;
· minimizing the share of non-income-generating assets (cash, funds on correspondent accounts with the Central Bank) by replacing part of them with short-term investments that have a degree of liquidity comparable to cash, but at the same time bring some income;
· obtaining an additional effect when acquiring shares of financial institutions, purchasing branches, establishing subsidiary financial institutions as a result of increasing capital and assets, a corresponding expansion of the scale of operations, mobile redistribution of existing resources, diversifying funds, entering new markets, saving current costs.
After determining the investment objectives and types of securities to purchase, banks choose a portfolio management strategy. According to the methods of conducting operations, strategies are divided into active and passive.
All active strategies are based on forecasting the situation in various sectors of the financial market and the active use by banking specialists of forecasts for adjusting the securities portfolio.
Passive strategies use the forecast for the future to a lesser extent. A popular approach in such management practices is indexing, i.e. securities for the portfolio are selected based on the fact that the return on investment must correspond to a certain index and have a uniform distribution of investments between issues of different maturity. A real portfolio strategy combines elements of both active and passive management.
A prerequisite for the formation of investment policy is the general business policy of the bank's development. The process of forming the investment policy of the bank in the most general form is presented in Appendix 1.
Determining the optimal ways to implement the strategic goals of investment activities involves the development of the main directions of investment policy and the establishment of principles for the formation of sources of investment financing. In accordance with these criteria, the following areas of investment policy can be distinguished:
· investing in order to receive income in the form of interest, dividends, payments from profits;
· investing for the purpose of generating income in the form of an increase in capital as a result of an increase in the market value of investment assets;
· investment with the aim of generating income, the components of which are both current income and capital gains.
When choosing the first direction of investment policy, the stability of income is of decisive importance. This direction provides for investing in fixed income assets for a long period of time with minimal risk, high investment reliability, guaranteed income, risk level and the possibility of their hedging. Particular attention is paid to the retrospective and current aspects of the analysis, the collection and processing of information characterizing the movement interest rates, profitability of securities, rating of the company - issuers of securities.
When the investment policy is oriented towards capital growth, the stability of the increase in the market value of investment assets comes to the fore, and their profitability is considered only as one of the factors determining the value of assets. A policy aimed at capital growth is associated with investing in investment objects, which are characterized by an increased degree of risk due to the possibility of depreciation of their value.
In the practice of banking, both directions of investment policy can be combined in various forms, which, as a rule, make it possible to enhance the advantages and mitigate the disadvantages. A variant of such a combination is a moderate investment policy, in which the preference is for a sufficient amount of income in the form of both current payments and capital growth with an investment period not limited by strict limits and moderate risk.
The Central Bank of the Russian Federation regulates the investment activities of commercial banks, defining priority investment objects and limiting risks by establishing a number of economic standards (the use of bank resources to acquire shares, issue loans, reserve for the depreciation of securities, bad loans), differentiated risk assessments for investments in various types of assets.
Chapter 2. Formation and organization of investment activities of a commercial bank
1 Formation of an investment portfolio by a commercial bank
To implement the developed investment process: the choice of the purpose of investment activity, the most favorable strategy from the possible ones, an investment portfolio is formed.
The bank's securities portfolio is a set of bank securities, selected in a certain way for the purpose of increasing capital, making a profit for the bank and maintaining its liquidity. The procedure for compiling a securities portfolio is the bank's portfolio strategy. The content of the securities portfolio determines its structure - the ratio of specific types of securities. The priority of certain goals corresponds to different types and types of the bank's securities portfolios.
There are portfolios of securities:
) balanced, fully consistent with the investment strategy of the credit institution;
) unbalanced, not corresponding to the investment strategy of the credit institution.
The goals of formation of securities portfolios include:
) receipt of income;
) preservation of capital;
) ensuring capital gains in case of an increase in the price of securities.
The formation of a portfolio of securities includes a number of stages:
) choice of portfolio type and definition of its nature;
) assessment of portfolio investment risk;
) portfolio structure modeling;
) portfolio structure optimization.
The portfolio may be focused more on reliability or profitability. The nature of the securities portfolio may be:
) conservative or balanced;
) aggressive:
) unsystematic.
The conservative investment strategy is based on the maximum security of the safety of invested funds. This strategy is most suitable for those investors who do not want to risk their money. This strategy is also suitable for investors who are not going to make long-term investments.
An aggressive portfolio uses an aggressive investment strategy that is characterized by high rates possible profit in the future. It serves the interests of those investors who are willing to take on a high degree of risk of incurring losses in order to obtain high profits. An aggressive investment strategy corresponds to an investment portfolio made up of stocks of various companies.
An unsystematic portfolio is formed randomly without a specific system.
Securities portfolios can be fixed, that is, maintain their structure for a specified period, and changing, having a variable structure of securities, the composition of which is constantly updated in order to obtain the maximum economic growth.
In terms of maturity, securities portfolios can be oriented towards including only short-term or medium-term and long-term securities.
An important stage in the formation of an investment portfolio is the selection of specific investment objects for inclusion in the investment portfolio based on their assessment. investment qualities and formation of an optimal portfolio.
In accordance with the purpose of investment, the formation of a portfolio of securities can be carried out on the basis of a different ratio of income and risk, characteristic of a particular type of portfolio. Depending on the type of portfolio chosen, securities with appropriate investment properties are selected.
The investment portfolio management process is aimed at maintaining the main investment qualities of the portfolio and those properties that correspond to the interests of the holder. The set of methods and technical capabilities applied to the portfolio is called the management style. There are active and passive styles of portfolio management.
The active management style consists in predicting the amount of possible income from investing funds. With active management, any portfolio is considered temporary. When the difference in expected returns disappears, then the components or the entire portfolio are replaced by another.
Passive management is based on the notion that the market is efficient enough to be successful in stock selection or timing and involves building a well-diversified portfolio with long-term expected returns and risks. Passive style is characterized by low turnover, minimum level overhead and low level specific risk.
A bank that forms a portfolio of securities constantly solves the problem of optimizing the structure of this portfolio - achieving the optimal degree of diversification of securities in the portfolio.
To find an efficient portfolio of stocks, it is necessary to calculate all admissible sets of portfolios based on the risk-return ratio and display the boundary on which the resulting portfolios with minimal risk will lie for a given return.
The efficient frontier is the frontier that defines the efficient set of portfolios. Portfolios located to the left of the efficient frontier go beyond the boundaries of the admissible set, and therefore are not admissible for consideration. Portfolios located to the right and below the effective frontier are inefficient, because there are portfolios that provide a higher return for a given level of risk, or a lower risk for a given level of return. The effective frontier starts with the portfolio that has the lowest standard deviation. Portfolios that lie on the efficient frontier and are above and to the right of the efficient portfolio with minimal risk will also be efficient.
2.2 Classification of operations of credit institutions with securities
As noted earlier, there are three main classes of banking operations with securities - active, passive and intermediary (commission) operations.
To the main active operations securities include:
· Investments in shares for the purpose of investment;
· Investments in shares, bonds of a speculative (short-term) nature (form the bank's own portfolio of shares);
· Promissory notes discounting - purchase of interest-bearing or discount bills from their issuer or from their holder before maturity at a discount;
· REPO operations - the purchase of securities under resale agreements (one party buys a package of securities, less often bonds, with a simultaneous obligation to sell it back to the other party at a certain time at an agreed price).
Basic passive operations:
· Issuance, sale and servicing of own bills;
· Issue and maintenance of own shares;
· Sale/purchase of own deposit and savings certificates.
The main intermediary (commission) operations include:
· Implementation brokerage service clients - conclusion of transactions on behalf of and on behalf of the client on the exchange and over-the-counter market;
· Assistance in placement and sale of own client securities (bonds, promissory notes);
· Depositary (custodial) services consist of storage, accounting and re-registration of securities, corporate actions with issuers.
Appendix 2 presents the structure of Russian credit institutions' investments in securities for 2012, illustrating the main transactions and their volume.
In 2012, the growth in the volume of financial resources attracted by credit institutions contributed to the increase in their investments in securities. However, due to the continued uncertainty of price expectations on the Russian stock market, as well as a more significant increase in other areas of investment, the share of securities in the structure of their assets decreased.
In 2012, credit institutions applied predominantly conservative investment strategies in the capital market due to persistently high investment risks on the Russian stock market. Investments of credit institutions in equity securities in January-October 2012 decreased by 6.9%, mainly due to shares of non-financial institutions.
In 2012, credit institutions increased their investments in debt securities. In January-October 2012, the volume of investments of credit institutions in debt obligations increased by 10.5%, mainly due to debt obligations transferred without derecognition. This is probably due to the growth in the volume of REPO transactions. Investments in debt obligations of the Russian Federation decreased by 29.2%. Also in 2012, investments in foreign securities increased by credit institutions (by 3.9% in January-October 2012). At the same time, investments in foreign securities of credit institutions grew more slowly compared to the securities of residents.
There was no significant increase in the investment risks of credit institutions due to the increase in investments in foreign securities, since the share of such investments in the structure of securities portfolios remained relatively low. As of November 1, 2012, it amounted to 14.9% for credit institutions.
Summing up, it can be noted that the results of investment activities of credit institutions have improved compared to 2011. The net income received by credit institutions from operations with securities in January-September 2012 amounted to 251.6 billion rubles. Thus, in 2012 there was an increase in the securities portfolios of credit institutions.
Chapter 3. Problems of development of banking investment
1 Problems of banking investment at the present stage of economic development
The inflow of private national and foreign capital into the investment sphere is hindered by political instability, inflation, imperfection of legislation, underdevelopment of industrial and social infrastructure, insufficient Information Support. Commercial activity encounters many bureaucratic factors. The interconnection of these problems enhances their negative impact on the investment situation.
In a market economy, a set of political, socio-economic, financial, socio-cultural, organizational, legal and geographical factors, inherent in a particular country, attracting and repelling investors, it is customary to call it an investment climate. The ranking of the countries of the world community according to the investment climate index or its inverse indicator of the risk index serves as a general indicator of the country's investment attractiveness.
Russia still lacks its own system for assessing the investment climate and its individual regions. Investors are guided by the assessments of numerous firms that regularly monitor the investment climate in many countries of the world, including Russia. However, assessments of the investment climate in Russia, given by foreign experts at their regular meetings, held outside the Russian Federation and without the participation Russian experts, appear to be less reliable. In this regard, the task arises of forming, on the basis of research conducted at the Institute of Economics of the Russian Academy of Sciences National system monitoring of the investment climate in Russia, major economic regions and subjects of the Federation. This will ensure the inflow and optimal use of investments, serve as a guide Russian banks in own credit policy.
Although domestic market shares over the past few years has shown steady growth, its "narrowness" due to the reluctance of most companies to become public and infrastructure problems act as factors holding back investment. Moreover, recently there has been a tendency to move the trade in securities of domestic companies to Western exchanges.
Experts have serious complaints about pricing on the Russian stock market. Thus, in developed markets, the formation of the market price of a share occurs, as a rule, on the basis of fundamental factors, primarily an assessment of the financial condition of the company (its net profit, revenue and other indicators). In Russia, the current share price largely depends on speculative tendencies, which, of course, carries with it a high investment risk.
Among the negative factors of the current state of the Russian stock market, experts attribute the unwillingness of even the largest domestic companies to carry out initial public offerings. Since 1999, there have been only a few initial public offerings on the Russian stock market. Practice shows that if a company is interested in real capital raising, then it applies for this to London or New York, since foreign investors have greater financial opportunities compared to domestic investors. In part, the same reason leads to an increase in the share of Western trading floors in the total volume of trading in domestic shares. And, as you know, where the trading activity is higher, there the main formation of the share price takes place.
Thus, the Russian stock market in its current state can hardly be considered a reliable mechanism capable of ensuring the steady growth of the economy and the well-being of citizens. If Russia can create a strong stock market, then not only will companies be able to raise relatively “cheap” money in sufficient quantities, but ordinary savers will also benefit from a wider range of investment vehicles. That is, ordinary citizens will be able to receive more income on your savings and do so with less risk.
In recent years, a layer of enterprises and entrepreneurs who have accumulated large amounts of capital has developed in Russia. Due to instability economic situation in the country, large funds are transferred into convertible currency and deposited in Western banks. The outflow of monetary resources (potential investments) from Russia is several times higher than their inflow.
The technology of carrying out market reforms involves a sequence of steps, along with stimulating capital inflow, measures are immediately taken to prevent its outflow.
investment commercial bank credit
3.2 Conditions and prospects for the development of investment activities of commercial banks
In 2013, while the uncertainty of price expectations in the Russian stock market persists, credit institutions and most types of non-banking financial institutions will continue to apply predominantly conservative investment strategies in the capital market. The volume of their investments in securities will be determined by the situation on the Russian stock market. Some of the legal innovations of 2012 may favorably affect the investment opportunities of credit institutions and non-banking financial institutions in the capital market in 2013. For example, the influx of shareholders in unit investment funds (UIFs) will probably be facilitated by the emergence of new types of funds - exchange-traded mutual funds. Development of new areas of insurance, in particular compulsory insurance civil liability owners of hazardous facilities, will serve as an incentive to increase the volume of insurance premiums collected by insurers. Some experts do not exclude the possibility of softening in 2013 the legislative requirements for the composition and structure of the assets of insurers, NPFs and MCs participating in the GPT, which may also have a positive impact on the investment opportunities of these institutions in the capital market.
The participation of banks in the securities market will largely be determined by the pace of its development. In those sectors where the participation of banks is noticeable (these are government securities in rubles and in foreign currency, as well as the corporate bond market), they will retain their positions as issuers and as investors. However, it can be assumed that in the near future the financing of the economy will continue to be carried out mainly through lending.
In choosing investment objects, Russian investors often focus on the following principles.
First, it is necessary to choose the most promising sectors of the economy, the products of which are in the greatest demand, the markets for the products of these sectors should only grow. Traditionally, the first attractive sector is oil. Oil is an international commodity and is easy to value. A company's market capitalization per barrel of reserves or production is already a basis for comparison Russian companies with foreign ones. The next sectors of interest to investors are telecommunications and energy.
Secondly, it is necessary to choose enterprises, information about all aspects of whose activities is fully available to shareholders, that is, transparent companies in the sense of finance.
The third component of a potentially successful company is professional management.
Of great importance when choosing shares for investment is the assessment of the impact of the liquidity of shares (in other words, the tradability of shares) on their market value. As a stock becomes more liquid, moving up the liquidity levels, an increasingly higher liquidity premium enters the market price - the share price rises.
Based on the impact of liquidity on the market value of a share, it may be sufficient profitable strategy search for companies that are on the verge of transition from the category of low liquidity to the category of fairly liquid ones. Investors betting on rising liquidity seek to outperform the market by finding businesses that are partially undervalued. In every branch of Russian industry there are cheap, illiquid enterprises with solid net profit, with competitive products and a wide sales market, as well as a strong management team.
It is necessary to develop the institutional investment infrastructure, which should become more and more international and integrated. The more versatile the composition of such an infrastructure is, the more fully it will be able to realize the capabilities of various states, investment technologies and attract resources on more convenient and favorable conditions.
Conclusion
In this course work, the features of the investment activity of a commercial bank are fully considered in relation to the tasks set.
Summing up the course work, we can draw the following conclusions.
The value of the investment activity of a commercial bank is especially high today, in the face of an increase in the growth rate of the banking sector in our country.
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 viewed as an activity in which it acts as an investor, investing its resources for a period of time in the creation or acquisition of real and purchase of financial assets to generate direct and indirect income.
At the same time, the investment activity of banks has another aspect related to the implementation of their macroeconomic role as financial intermediaries.
Based on the studied theoretical material, the paper presents the concept of investment activity, which most objectively reflects it. economic essence. Thus, investment activity is the investment of funds, investment or the total activity of investing money and other values in projects, as well as ensuring the return on investment.
Also in the course work, the formation of the process of investment activity was considered, since, in my opinion, for the good functioning of a commercial bank, it is necessary to form a system of investment activity targets and choose the most effective ways to achieve them.
The process of forming an investment portfolio, in turn, is associated with the selection of a certain set of investment objects for investment activities. The essence of portfolio investment is to improve investment opportunities by giving a set of investment objects those investment qualities that are unattainable from the standpoint of a single object, and are possible only with their combination. The structure of the investment portfolio reflects a certain combination of the bank's interests.
The last chapter of this course work is devoted to the problems of banking investment (a number of main problems are identified, their causes are identified), the conditions and prospects for the development of investment activities of commercial banks.
List of used literature
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Banks and banking: Textbook for universities. 2nd ed. - St. Petersburg: Peter, 2008-346s
Banking operations: textbook. allowance for sredn. prof. Education / ed. Yu.I. Korobova-M.: Master, 2008 - 397s
Goncharenko L.P. "Investment management", Tandem - 2008 - 354s
Money, credit, banks: Textbook / Ed. O.I. Lavrushin. - 2nd ed., revised. and additional - M .: Finance and statistics, 2008 - 487s
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Money. Credit. Banks: textbook / Yu. V. Bazulin and others; ed. V. V. Ivanova, B. I. Sokolova. - 2nd ed., revised. and additional - M.: Prospect, 2009 - 467s
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16. Kolmykova T.S. Investment analysis. Ed. Infra - M, 2009 - 240s
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Serov V.M. Investment management. - M.: Infra - M, 2008 - 156s
Tagirbekova K.D. Organization of the activities of a commercial bank / K.D. Tagirbekov. M: The whole world. - 2008. - 674s
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Attachment 1
Figure 1: The process of forming the bank's investment policy
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The banking system is one of the most important and integral structures of the market economy. In many ways, it is the banking sector that determines the level of economic development, influencing the rate of economic growth through investments in various sectors of the economy. The current legislation provides commercial banks with economic freedom at the disposal of their funds and income, therefore, banks, along with other types of banking activities, invest in business and other types of activities in order to make a profit.
Investment activity - investment, or investment, and a set of practical actions for the implementation of investments. Banking investment is usually understood as an investment in private and government securities for a relatively long period of time.
Describing the investment activities of commercial banks, one can single out the distinctive features of investing and lending: 1) a loan involves the use of bank funds for a relatively short period of time, provided that they are returned by the due date with payment loan interest; investments involve the use of funds for a long time; 2) when lending, the initiator of the transaction is the borrower, when investing, the initiative belongs to the bank seeking to acquire assets in the securities market; 3) in credit transactions, the bank is one of the main and few creditors; when investing in securities, the bank is one of many other investors; 4) lending involves close contact between the borrower and the lender, investment is an impersonal transaction.
The activity of banks as institutional investors involves carrying out transactions for the purchase and sale of securities, attracting loans secured by purchased securities, operations for the implementation by the investor bank of the rights certified by the acquired securities, participation in the management of the issuing joint-stock company, participation in bankruptcy proceedings as creditor or shareholder, receiving the due share of property in the event of liquidation of the company.
The objects of investment activity of a commercial bank are common and preferred shares, bonds, government debt obligations, certificates of deposit, bills of exchange, etc.
Depending on the goals pursued by the bank in the implementation of investment operations, investments can be divided into two groups: direct investments are investments for the purpose of direct management of the investment object, which can be enterprises, various funds and corporations, real estate and other property; portfolio investments are carried out in the form of creating a portfolio of securities of various issuers, managed as a whole. The purpose of portfolio investment is to receive income from the growth in the market value of securities in the portfolio and profit in the form of dividends and interest.
The main factors pushing a commercial bank to carry out investment operations are profitability (investments are the second most important source of profit for the bank after lending operations) and liquidity.
The profitability of the investment activity of a commercial bank is determined by the stability of the state economy and its legislative system, the level of development of the credit and financial system, the development of the securities market, the availability of high-quality securities on the market, the maturity of securities.
The investment activity of banks is carried out at the expense of their own resources, as well as borrowed and borrowed funds.
The main principles of effective investment activity of banks include: the availability of professional personnel (since the investment activity of banks largely depends on the efficiency investment decisions); diversification of investments (it is advisable to limit investments by types of securities, sectors of the economy, regions, maturity, etc.); liquidity of investments (investments must be highly liquid so that they can be quickly transferred into instruments that, due to changes in market conditions, become more profitable, and also so that the bank can quickly get back the funds invested by it).
When investing, the bank must find best option between the pursuit of profit and ensuring the liquidity of a commercial bank. When a commercial bank invests in securities, an investment risk arises, which determines the conflict between the yield and liquidity of securities and is a combination of credit, market and interest types of risk.
The most difficult moment when choosing an instrument of investment activity is determining their profitability. Two factors play a significant role in bond and stock returns, namely inflation and taxes. For getting real income For a security, it is necessary that its total return be above the current inflation rate. In addition, the real yield of a security must be calculated after deducting the amounts of taxes paid from the income they bring. Therefore, in order to achieve the optimal combination of security and profitability, banks form an investment portfolio and constantly monitor its effectiveness. Investment portfolio - a set of securities purchased to generate income and ensure the liquidity of investments. Portfolio management is about maintaining a balance between liquidity and profitability. The amount of securities owned by a bank is directly related to the ability of the bank to actively manage investment securities and depends on the size of the bank.
To manage the investment portfolio, banks use two types of strategies: active and passive. Active strategies are based on forecasting the situation in various sectors of the financial market and the active use by banking specialists of forecasts for adjusting the securities portfolio. Passive strategies are based on indexing, i.e. securities for the portfolio are selected based on the fact that the return on investment must correspond to a certain index and have a uniform distribution of investments between issues of different maturity. At the same time, long-term securities provide the bank with higher income, while short-term securities provide liquidity. A real portfolio strategy combines elements of both active and passive management.
It should be noted that there is a significant increase in the share of banks' investment operations in securities, the most important reasons for which are the relatively high level of income on them, lower risk and high liquidity compared to lending operations.
Thus, we can conclude that commercial banks, carrying out investment activities, contribute to maintaining economic stability, improving the banking system, and developing the state economy.
Literature: Evaluation of the effectiveness of investment projects / Vilensky P.L., Livshits V.K., Orlova E.R., Smolyan S.L.. Ed. ed. Vilensky P.L. - M., 2007. Galanov V.A. Securities Market: Textbook. - M.: INFRA-M. - 2007 Askinadzi V.M. Securities Market / Moscow International Institute of Econometrics, Informatics, Finance and Law. - M., 2003. Heydarov M.M. Investment financing and lending. - A., 2003. Poputarovsky O. Investment funds: structure, types and order of creation // Securities Market of Kazakhstan. - 2009. - No. 3. - P.44-50.
Historical development banking business was accompanied by a constant expansion of the range of not only banking products, but also financial services, including investment orientation. The investment activity of banks can be considered both in a broad and in a narrow sense.
Bank investments in a broad sense- this is an investment of funds (both own and borrowed) at the initiative of the bank itself for a certain period in order to receive profit from participation in the activities of other enterprises or income in the form of interest.
Investments of banks in the narrow sense is the bank's investments in securities in order to diversify assets, generate additional income and maintain balance liquidity.
Objects bank investments are public and private (corporate) securities.
Subjects investment relations are, on the one hand, the bank, and on the other - the state, enterprises (corporations) and organizations.
Resource sources for the investment activities of banks are: own funds; borrowed and borrowed funds.
Banks' investments are carried out in two directions - direct and portfolio investments.
Bank direct investment–it is the investment of resources in organizations and enterprises with the aim of directly participating in their management.
When investing in joint-stock enterprises, such investments take the form of equity participation, in which case the bank may acquire a controlling interest. Such investments form the bank's so-called controlling interest portfolio, which consists of securities acquired in sufficient quantities to provide control over the management of the issuing entity or exercise significant influence over it.
Portfolio (financial) investments – these are investments of banks' resources in various types of securities and other financial instruments, which together form the bank's investment portfolio. The Bank, as an institutional investor, forms its investment portfolio by acquiring shares, bonds (both government and corporate), certificates, promissory notes and other debt obligations in order to diversify assets, maintain liquidity, receive additional income in the form of dividends, interest, etc. or for resale for the purpose of earning foreign exchange gains.
The nature of the bank's operations with securities is directly related to the main strategic goal of its activities - making a profit. In this regard, through securities, the bank solves the following tasks:
In addition to trading in securities modern banks can act as professional participants in the securities market - investment institutions (as financial brokers, dealers, investment companies); carry out securities management, clearing and depository activities.
The specificity of banking (as already noted) lies in the high proportion of borrowed funds in the structure of liabilities, therefore, the state, regulating the activities of banks (through the Central Bank), establishes certain quantitative restrictions on operations with securities in the form of economic standards: restrictions on the use of funds for the acquisition shares of other business entities; limiting the size of the exchange rate risk.
For effective management, the entire set of securities owned by the bank is combined into a portfolio of securities (securities portfolio). The main goal of securities portfolio management (investment management) is to minimize risks and achieve a balance between liquidity and profitability.
For the purposes of the current procedure for accounting for investment operations of credit institutions central bank the following terms and definitions are established:
the Federal Commission for the Securities Market, and for foreign organized markets or trade organizers - the national authorized body;
The main factors determining the size and structure of the bank's securities portfolio:
The necessary conditions that determine the effectiveness of banking investments include:
Investment processes, mediated by relevant structures (including banks), are the driving force behind the dynamic development of social production in any socio-economic system. At the same time, the implementation of large-scale projects in the real sector of the economy, primarily associated with large capital investments in the technical re-equipment of production or the creation of new competitive industries, is a rather complicated and lengthy process. In this regard, bank lending to investment projects is of particular importance.
