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 means for 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 management 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 include:
Investment security refers to the invulnerability of investments from various shocks in the stock market, the stability of income and liquidity. 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.
The main principles of effective investment activity of banks are:
Investment portfolio commercial bank usually consists of various securities issued by the federal government, municipalities and large corporations.
To assess the feasibility of acquiring certain securities, there are two main professional approaches; most large commercial banks conduct both fundamental analysis, as well as technical.
Fundamental analysis covers the study of the activities of industries and companies, analysis of the financial condition of the company, management and competitiveness. It consists of industry analysis and company analysis. In an industry analysis, the bank determines the industries that are of greatest interest to it, and then the leading companies are identified in these industries, and among them the company whose shares it is advisable to purchase is selected.
Technical experts are based on the study of exchange (or off-exchange) statistics; analyze the change in supply and demand, the movement of stock prices, the volumes, trends and structure of stock markets on the basis of diagrams and graphs, predict the possible impact of the situation on the market on the demand and supply of securities. The analysis of companies is divided into quantitative and qualitative.
Qualitative analysis is an analysis of the effectiveness of company management; quantitative - studies of various kinds of relative indicators obtained by comparing individual articles of the company's financial report.
Comparisons are made with similar enterprises and industry average data of the main absolute indicators of its activities (sales volume, gross and net profit), the study of changes and return on sales and return on equity, in net income per share and the amount of dividend paid on shares. Investment securities bring commercial banks income in the form of interest income, commissions for providing investment services and increase in market value.
World experience has not developed an unambiguous approach to the problem of using banks' own funds when acquiring shares of other legal entities: in some countries, the participation of banks in the capital of other structures is not limited (Germany), in some countries it is strictly prohibited (USA, Canada). The Bank of Russia has chosen an intermediate option for regulating this sphere - central bank The Russian Federation may control the operation of the bank, but is not in a position to interfere with the activities of other economic entities that are not credit institutions, and, therefore, is not in a position to determine the degree of commercial risk.
The main risks in investing are associated with the possibility of: loss of all or a certain part of the invested funds; · depreciation of the means placed in securities at growth of inflation; non-payment in full or in part of the expected return on invested funds; Delays in earning income · Emergence of problems with re-registration of ownership of acquired securities.
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. At the same time, long-term securities provide the bank with higher income, and short-term securities provide liquidity. A real portfolio strategy combines elements of both active and passive management.
The most important reason for the significant increase in bank investment in securities is that relatively high level income on them, less risk and high liquidity compared to lending operations.
The most important characteristic of the forms and types of banking investments is their assessment from the standpoint of a combined investment criterion, the so-called magic triangle "profitability-risk-liquidity", which reflects the inconsistency of investment goals and requirements for investment values.
Banks work mainly not on their own, but on borrowed and borrowed resources, so they cannot risk their clients' funds by investing them in large investment projects if this is not secured by appropriate guarantees. In this regard, when developing their 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, it is about the development and implementation of a sound investment policy. The development of the bank's investment policy is a rather complicated process, which is due to the following circumstances. First of all, due to the duration of investment activity, it should be carried out on the basis of a thorough prospective analysis, forecasting of external conditions (state macroeconomic environment and investment climate, investment market conditions and its individual segments, features of taxation and state regulation banking activities) and internal conditions (volume and structure of the resource base of the market, the stage of its life cycle, goals and objectives of development, the relative profitability of various assets, taking into account risk factors and liquidity, etc.), the probabilistic nature of which makes it difficult to form an investment policy.
In addition, the definition of the main directions of investment activity is associated with large-scale problems of research and evaluation of alternative options for invested decisions, the development of an optimal investment development model from the standpoint of profitability, liquidity and risk. The development of an investment policy is significantly complicated by the variability of the external environment of banks, which determines the need for periodic adjustments in investment policy, taking into account predicted changes and developing a system for prompt response. Therefore, the formation of the investment policy of banks is associated with significant difficulties, even in a steadily developing economy.
A prerequisite for the formation of investment policy is the general business policy of the bank's development, the main objectives of which are priority in the development of strategic objectives of investment activity. As an important component of the overall economic policy, investment policy is a factor in ensuring the effective development of the bank.
The main goal of the investment activity of the bank can be formulated as an increase in the income of investment activity with an acceptable level of investment risk. In addition to the general goal, the development of an investment policy in accordance with the strategy chosen by the bank economic development provides for taking into account specific goals, which are:
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:
Orientation to one of the above areas is a key link in the formation of investment policy, which determines the composition of investment objects, the source of income, the level of acceptable risk and approaches to investment analysis.
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. An increase in the market value of investment objects can occur both as a result of an improvement in their investment qualities and short-term fluctuations in market conditions. At the same time, the role of the speculative component increases.
The features of this type of investment policy determine the strengthening of the role of perspective aspects of analysis in comparison with retrospective and current analysis in making investment decisions.
The choice of the direction under consideration as a priority is typical for an aggressive investment policy, the purpose of which is to achieve high efficiency of each investment operation, to maximize income in the form of the difference between the price and acquisition of an asset and its subsequent value with a limited investment period.
In the practice of banking activities, the directions of investment policy can be combined in various forms, which, as a rule, make it possible to strengthen 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 development of an investment policy involves not only the choice of investment directions, but also taking into account a number of restrictions associated with the need to ensure a balance in the investment investments of a commercial bank. Objectives and restrictions are established by the legislative and regulatory acts of the monetary authorities, as well as the management bodies of banks.
The Central Bank of the Russian Federation regulates the investment activities of commercial banks, identifying priority investment objects and limiting risks by establishing a number of economic standards(use of bank resources for the acquisition of shares, issuance of loans, reserves for the depreciation of securities, bad loans), differentiated risk assessments for investments in various types of assets.
The organization of the investment policy in the bank involves the development of internal guidance documents that fix the basic principles and provisions of the investment policy. The experience of banking practice testifies to the expediency of formulating an investment policy in the form of an investment program.
Reflecting the goals of investment, the investment program determines the main directions of investments and sources of their financing, mechanisms for making and implementing investment decisions, the most important characteristics of investment assets: profitability, liquidity and risk, their ratio in the formation of the optimal structure of investment investments.
The limit of acceptable risk is the weighted average cost of attraction investment resources. Having established the preferred forms of income in the process of developing the main areas of investment, the investor determines the share of each form in the total income from investment investments.
Management of investment activities provides for the analysis of the structure of assets to bring them in line with the structure of investment resources and ensure the required level of liquidity. The liquidity of investment assets should be associated with the nature of the liabilities that are the source of their financing.
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Introduction
Investment activities 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 the 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
This term paper is a comprehensive study of the investment activities of commercial banks, as well as the identification of problems in the 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 economic literature on the theoretical and methodological foundations of the study of the investment activities of commercial banks, methods of 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 fundamentals investment activities of commercial banks
1.1 The essence of the investment activity of a commercial bank
Modern commercial banks are banks that directly serve the enterprise and organizations, as well as the population - their customers. Commercial banks are the main link in the 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 that, on the one hand, attract temporarily free funds from the economy, and on the other hand, use these funds to satisfy the various financial needs of enterprises, organizations and the 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 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. In this capacity, banks help meet the needs of business entities for investment. Demand for them in a market economy arises in monetary form. 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;
Indicators of the effectiveness of the investment activities of banks, in particular, the increase in assets and the increase 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 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.
Consequently, commercial banks must clearly work out and formally consolidate 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 the reliability of the 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 have only 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 Central Bank RF, limiting the bank's participation in financial and industrial groups.
The 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, a bank does not acquire the right to a joint economic activity or share. 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 are real investments, which are capital investments in production activities. Federal Law "On investment activity in the Russian Federation, carried out in the form 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 that affect the efficiency of the enterprise itself, as well as the country's economy as a whole.
To develop an 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 of the 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 of a commercial bank, the activities of the investment department are 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 economic conditions change, the commercial bank's investment policy 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. This implies 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 a 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 purchased 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 on the example of the Savings Bank of 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 retail deposits, 33.6% of corporate loans and 32.7% of 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, designed to effectively assess credit risks and ensure a high quality loan portfolio. Sberbank is the largest issuer of debit and credit cards. The joint bank, established 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 corporate clients, and the share of small and medium-sized companies accounts 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, cash management services and other basic 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 applications " Mobile bank"and" Sberbank Online @ yn "with an impressive client base, with more than 9.4 million and 5.4 million active users, respectively.
In recent 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 money, bills of payment and settlement documents and provides cash services for 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 funds 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 performance indicators of the NPF of 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. A portfolio of 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).
Thanks to its leading positions in the banking system and based on the tasks it solves for Sberbank of the Russian Federation, it is the founder of a number of other financial institutions: Industrial Commercial AvtoVAZbank, Vneshtorgbank of the Russian Federation, Housing Initiative Corporation, financial and trading company Sovfintrade, International Moscow Bank and others. In addition, Sberbank of the Russian Federation is a member of the Moscow Interbank Currency Exchange, the 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 distribution of plastic cards (Associations VISA International, UK), 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 sectors: in industry by 52.7 billion rubles to 361.1 billion rubles (the share 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 (fall specific gravity from 3.4 to 2.8%). in trade and public 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 clients and borrowers include most of the largest defense industry enterprises in 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 the framework of 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 active substitution 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 normative 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 finance and financing of construction projects in 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 interest rate) and 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 poses a threat to 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 financing.
The main problems in the implementation of investment activities by commercial banks are the high capital intensity and long payback periods of infrastructure projects, the lack of transparency of the legal framework that ensures the protection of 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.
In addition, the Russian economy as a whole and the banking sector in particular have a relatively low investment attractiveness, as evidenced by the dynamics of investment, 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 of lending that need to be developed are syndicated and mortgage loans in the manufacturing area.
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 areas of investment 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, and the growing trend towards the integration of 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 banks to provide long-term loans for investment projects with high credit and investment risks in the production sector is the availability of state guarantees. Among the measures that contribute to the growth of industrial investments of commercial banks, one can also include the differentiation of economic standards depending on the share of their investments in the real sector of the economy and preferential taxation.
Revision of the previous regulatory system in accordance with the declared priorities of 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 of high reliability, manageability and investment orientation, guarantee the necessary level of supply of credit resources at interest rates affordable for the industrial 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 activities of Sberbank of the Russian Federation, we can say that a large share investment funds The bank was directed to purchase 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.
Bibliography
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Introduction
The efficiency of the world financial market is not least characterized by how and at what cost meetings of creditors and borrowers are held. Financial intermediaries - financial institutions that are professional participants in the financial market - are called upon to contribute to the optimization of this process. Such intermediaries include the so-called investment banks.
Having passed a long way of formation, investment banks only in the second half of the 20th century turned into financial institutions capable of exerting a significant influence on the global financial market and demonstrating wide opportunities for the accumulation and distribution of free capital among its end users. Gradually, these financial institutions formed a global investment banking oligopoly.
Currently, the concept of "investment bank" is widely used by participants in the global financial market (from representatives of the general public to heads of state, members of various international organizations and employees of financial institutions). This concept has been successfully established in the everyday life of the Russian media, in economic scientific and business circles, and in the Russian financial market. Therefore, ignoring this concept and denying the possibility of analyzing these financial institutions and their activities seems unreasonable.
The relevance of the topic of the course work is due to the fact that on the part of government officials and the business community, one can often hear statements that one of the main conditions for the development of the Russian economy is the expansion of investment activities of the banking sector. One of the main directions for the development of the entire banking system in the long term is a significant increase in the share of lending in the material sector of the country's economy. Depreciation of fixed assets in most industries material production has reached a critical value of 70 - 80%, which threatens major man-made disasters and accidents.
The theoretical foundations of the investment activity of banks and its implementation features in the conditions of modernization of the Russian economy are considered in the works of such Russian economists as E.F. Zhukov, O.G. Semenyuta, L.L. Igonina and others.
Representatives of foreign economic schools, such as D.N. Enand, A.D. Morrison and others.
The purpose of the course work is to study the features of the activities of investment banks and the prospects for their development in modern Russian conditions.
In accordance with the goal in the course work, the following tasks are solved:
Analyze the essence of the concept of "investment bank";
Explore the role of investment activities of banks in the economy;
To study models of investment - banking systems;
Analyze the main activities of investment banks;
Explore the prospects for the work of investment banks in the securities market;
Consider the development of project financing (investment lending) in the investment activities of banks.
The object of the study are the leading investment banks of the USA, Great Britain, Germany, Japan, China, India, Brazil and Russia. The subject of the study are the features of the activities of investment banks of these countries at the national and global levels.
The information base of the course work was made up of theoretical developments of domestic and foreign economists, materials of general and special publications of an economic and financial nature, data from leading research economic and financial institutions and organizations, as well as legislative and regulations a number of countries. Sources from the Internet were widely used.
Essenceconcept of "investment bank"
The essence and principles of the work of investment institutions in the modern Russian economy have been studied and studied quite diversified. The activity of investment institutions in the securities market, the activities of investment banks as investment institutions, and the management of investment institutions are considered. However, at the moment there is no single generally accepted concept of an investment institution. There is no consensus on which organizations belong to investment institutions. In order to define this concept, we will not be able to resort to legal definitions, since they simply do not exist in the legal systems of most countries.
Many researchers believe that the progenitor of investment banks is the United States, but even in the US legal system, the concept of "investment bank" (investment bank) does not appear. If we turn to the main documents of US banking legislation directly related to the topic of the study, we will find that the concept of "investment bank" (investment bank) is not fixed in these documents. It is not even in the well-known Legislative act of Glass - Steagall (Glass - Steagall Banking Bill of 1933), which divided commercial and investment banking in the USA in 1933.
As for dictionary and theoretical sources, both domestic and foreign, they offer different definitions of the concept of "investment bank", but, as a rule, they are all based on the listing of operations performed by these financial institutions.
« Investment bank is an institution specializing in the organization of issuance, guaranteeing the placement and trading in securities, which also consults clients on various financial issues (primarily on mergers and acquisitions), while focusing mainly on wholesale financial markets (for US conditions) ” - and as - "a non-clearing bank specializing in medium and long-term investments in small and medium-sized companies (for UK conditions)".
“An investment bank is a large universal commercial organization, which combines most of the permissible activities in the securities market and in some other financial markets.
An investment bank is financial institution specializing in operations with long-term capital investments, mainly in the field of creating new fixed assets, acquiring shares of industrial corporations, and implementing individual investment projects.
"A bank dealing in securities and offering financial services like trading of securities, the raising of capital, or managing mergers and acquisitions is an investment bank" funds or management of mergers and acquisitions, is an investment bank).
Investment bank is an institution which acts as an underwriter or agent for corporations and municipalities issuing securities
Thus, on the basis of the above definitions, it can be assumed that the concept of "investment bank" has both private and general definitions. So, in a number of definitions, the idea can be traced that an investment bank is a financial and credit institution engaged in investing capital in industry, agriculture, construction and other sectors of the economy. At the same time, investments are made, most likely, in the form of direct, real cash injections into the fixed and working capital of an economic entity. This idea is confirmed in practice. For example, there is the European Investment Bank (EIB). It was established in 1958 in accordance with the Treaty of Rome establishing the "Common Market". The EIB serves several European countries, issues bonds and provides loans to public and private enterprises in these countries and a number of African states. Most of the Bank's loans go "to create and improve infrastructure (construction of railway and highways, harbors, communications enterprises) and the development of agriculture”.
In addition, there is, for example, the China Investment Bank (CIB), which was established in 1981 with the support of World Bank. The main task of CIB is to inject investments into the real sector of the economy for the development and modernization of small and medium-sized enterprises light industry. By investing in this sector of the economy, CIB is trying to smooth out the imbalance that is observed between the sectors of heavy and light industry in the PRC. In addition to China, state-owned investment banks funded by budget funds, available in Germany, Japan, Italy, Turkey and some other countries.
Thus, based on the private definition of an investment bank, it is a large financial institution that operates at the interstate, state (national) and regional levels and attracts direct cash investments in the real sector of the economy or the economy of a particular country
and regulating their intended use.
As for the general definition, it is wrong to define the concept of "investment bank" only by the operations that this financial institution carries out. Definitions that are based on the operations of an institution may be legally justified. It is known that many legal concepts are based on the allocation of individual operations of financial institutions, without which they simply cannot be imagined. This core of operations, as it were, separates and delimits these financial institutions from all others. However, as already mentioned, the investment bank as a financial institution does not have a legal status (in financial systems most countries), which means that the concept of "investment bank" in most countries does not have a legal definition that could be used.
In addition, the allocation of operations carried out by an investment bank does not reveal the essence of an investment bank, but only brings it closer to disclosure.
To determine the essence of an investment bank, it is necessary to refer not to the operations performed by the bank, but “to the macro level of relations between the bank and the economy, ... to the qualitative side that manifests itself at the macro level”, to the functions that the investment bank is called upon to perform. To reveal the essence of an investment bank, it is necessary to consider the specific characteristics that are inherent only or to a greater extent in investment banks; its fundamental quality at the macro level, its structure, its characteristics as an economic institution, its functions.
First of all, an investment bank is a financial institution whose productive nature of activity lies in the fact that an investment bank creates its own specific product. This idea is shared by foreign researchers, for example, Harvard University professor Bharad N. Anand believes that investment banks are “multiproduct companies” (investment banks are multiproduct firms). The products produced by investment banks include:
Securities, in the process of issuing which investment banks participate, as well as derivative and structured financial instruments that are created directly within the framework of an investment bank;
Funds that investment banks raise for certain business entities and turn idle, non-performing funds into working ones. Thus, investment banks "feed" the economy and stimulate the exchange of products of labor and the process of reproduction;
Loans that investment banks make to their clients (private and institutional investors) in the form of cash and securities, and which are returned to the investment banks "to their starting point with an increment in the form of newly created value";
A variety of services that investment banks provide to their clients and "the productive nature of which is confirmed by the organic inclusion of profits in the total amount of the total social product created in the relevant period of time."
According to modern economists, investment institutions are one of the components of financial institutions. From the point of view of Professor V.V. Tsarev, an investment institution is "a body that is engaged in investment, that is, long-term investment in various projects (business projects)".
1.2 The role of investment activities of banks in the economy
The essence and functions of an investment bank determine its role in the economy. The role of an investment bank is its purpose, that is, for the sake of which it was created and for which it functions. The purpose of an investment bank is that it accumulates and redistributes monetary resources and in a certain way regulates certain segments of the financial market. Investment banks are "collectors" of temporarily free cash resources, which later go to meet the needs of production, distribution, exchange and consumption. Thus, investment banks contribute to ensuring the continuity of production and circulation of the product, accelerating the reproduction process as a whole.
In addition, investment banks, by placing their own and borrowed funds in various investment projects, contribute to the creation of new industries, the speedy introduction of scientific and technological ideas and achievements into production, and the re-equipment of existing industries with modern equipment and technologies.
Do not forget that an investment bank is a productive institution, a separate business entity, which, in turn, creates its own specific product. The products and services of investment banks, as already noted, "feed" the economy and stimulate the exchange of labor products and the process of reproduction, contribute to the increment in value and the total social product created in the corresponding period of time.
Moreover, an investment bank is a kind of regulator of certain segments of the financial market; it seems that it can be called a structure-forming element of the financial market. In this capacity, an investment bank is intended to partly streamline and rationalize the circulation of financial instruments (unfortunately, in practice, investment banks have not always coped with this role).
Opportunities largely depend on how stable and efficient the banking sector functions. economic growth and development of the country.
The investment activity of banks has not only economic, but also socio-political significance, contributing to the development of market relations in the economy, creating financial basis for the economic activity of its subjects. On the basis of investments, new enterprises are created, and existing ones are expanded, new, most modern types of products are being developed. Implementation entrepreneurial activity often impossible without the construction or acquisition of buildings for these purposes, the purchase of equipment, Vehicle, technologies and other long-term assets. For such investments characteristic features are a long repayment period, reimbursement of these costs, the high cost of objects for the acquisition of which entrepreneurs use both their own funds and attract funds from third parties - creditors, investors. An entrepreneur in the mechanism of entrepreneurial activity acts in two ways - first he attracts funds - investments, then he invests them in fixed assets, intangible assets, securities. When an entrepreneur enters the market in order to occupy his niche in it for a long time, the process of renewal, modernization of fixed assets, as well as attracting funds from investors, goes on continuously.
men, lining up buyers and sellers of stock, bonds and all matter of exotic securities” (In essence, investment banks are intermediaries connecting buyers and sellers of stocks, bonds and all kinds of exotic securities); "Investment banks act as go-betweens in trading and finance" (Investment banks act as intermediaries in trading and in solving financial issues). An investment bank, being a financial intermediary, is designed to perform several sub-functions at once:
Accumulation of funds: an investment bank, acting as a trustee (segments of MC, IF), accumulates significant cash resources of clients, and then sends them to creditors. Through this, there is a "transformation" of retail savings of individual economic entities in wholesale. At the same time, the process of accumulation of monetary resources by an investment bank differs from the accumulation of resources by other financial institutions. Thus, the ownership of the accumulated monetary resources remains with the creditors (customers of the investment bank); the bank cannot use these funds for its own purposes and for its own needs; the bank uses the accumulated funds only for the intended purpose, which was agreed in advance with the clients and in the interests of the clients.
Redistribution of funds:
a) Investment banks into liabilities (corporate papers, bills, structured products). With the proceeds from the sale of these obligations, investment banks can buy debt and securities of other economic entities. Thus, there is a kind of double exchange of debt obligations. Namely, according to some experts, this is the distinguishing feature of financial intermediaries from others. financial entities(for example, broker-dealer companies that do not issue their own obligations, but contribute to the movement of funds from creditors to borrowers).
Reducing risk by diversifying it:
a) Investment banks through the sectors of remote control and IF manage not separate financial instruments, but by large portfolios of financial instruments purchased with clients' money. Thus, they can at least partly reduce some non-systemic risks, which is almost impossible to do if an individual private investor manages a relatively small portfolio of securities.
b) Investment banks, acting as underwriters and/or organizers of the issue, guarantee issuers the placement of securities and maintaining their liquidity within a specified period of time, thereby they assume the risks associated with the "non-placement" of issue-grade securities.
c) Investment banks, acting as underwriters, guarantee the value of issued securities with their reputation, thereby reducing some non-systemic risks for potential investors that arise when buying securities of certain issuers. Basically, investment banks
act as "delegated controllers", making up for the incompleteness of information from investors.
Reduction of circulation costs: investment banks, being financial intermediaries, help to reduce distribution costs (of their own and their clients) by specializing in certain securities issuance processes, they attract financial resources of creditors who go to purchase borrowers' securities. Thus, there is an overflow, a movement of money resources from those who have money to those who need it.
b) Investment banks themselves can increase the size cash funds, as they also release their own debt types of financial transactions to the market (investment boutiques), due to the wide scale of their activities (large investment banks), due to the presence of consulting and analytical departments as part of an investment bank, and so on.
Thus, due to the implementation of all the above sub-functions, investment banks have developed such a mechanism of financial intermediation, through which the accumulation and redistribution of funds from the lender to the borrower occurs most efficiently.
However, investment banks perform another key macroeconomic function, which is to regulate segments of the financial market.
a) Acting as brokers (market makers), investment banks contribute to setting a fair price for certain financial instruments, maintaining the liquidity of these instruments (on the exchange or over-the-counter markets).
b) Acting as brokers/dealers (large sellers-buyers of financial instruments), investment banks are able to significantly influence the price of financial instruments (especially in thin markets). At the same time, investment banks must act "on an honest and fair basis in the interests of, first of all, their clients and make every effort to preserve the honest and fair nature of the market."
c) Acting as professional participants in the financial market, investment banks contribute to the maintenance of the market itself (exchange or over-the-counter), since the market exists only when there are sellers and buyers, that is, participants in the trade.
d) Acting as underwriters, issuers of their own corporate papers and "manufacturers" of derivatives and structured instruments, investment banks create financial products that, having a certain liquidity, circulate and are traded on the stock market. That is, investment banks are producers of financial instruments.
Other, less significant and less important functions of an investment bank include the function of redistributing information, the function of turning wholesale securities into retail ones, and the function of creating an information market space.
The idea that investment banks are involved in the process of "redistribution of information" is reflected in both domestic and foreign sources. "Redistribution of information", according to D.S. Ulyanova, takes place in the process of preparing the issue of securities, when investment banks advise the issuer on all issues related to the issue of securities.
Foreign researchers interpret the issue of the redistribution of information by investment banks somewhat differently. They argue that financial markets cannot function effectively unless valuable information reaches those who need it. The information market space created by investment banks contributes to a smoother and more efficient flow of transactions related to information-sensitive securities. Investment banks are the core of the information space and act as intermediaries, agents, connecting those who are interested in buying information and those who are interested in selling it.
Another function of investment banks is called "the transformation of wholesale securities into retail." This happens when an investment bank buys a large block of corporate paper, issues its own paper lower denomination and places them among its clients.
2.1 Models of investment banking systems
Foreign experience of organization by banks investment business shows that world practice knows two main models for building investment banking systems: segmented (American) and universal (German).
The specificity of these systems characterizes the different role of commercial banks.
The segmented system is characterized by a strict legislative separation of the areas of activity of credit institutions: banking operations (raising funds, issuing short-term loans) are separated from operations for the issuance and placement of securities and some other types of financial services. In turn, under the universal system, banks, in accordance with the law, can, without restrictions, perform a wider range of financial services than just banking.
The parallel development of the processes of universalization and specialization of the activities of banks has led to the formation of a new type of investment banks, the distinguishing features of which are: the global nature of their activities, the presence of significant free capital, a full range of diversified and integrated services, the creation of their own asset management business, retail operations with small and medium-sized clients through the development of powerful brokerage networks, merging with the insurance business. At the same time, the main characteristics of the investment services market are the concentration of capital and power in the investment banking sector, the blurring of the lines between commercial and investment banks.
The division of spheres of activity between credit institutions was introduced in a number of countries after the economic crisis of 1929-1933. So, in Italy, according to the Banking Law of 1936. banks were specialized: banks were identified that deal only with short-term or only medium-term and long-term lending.
In the United States, banks, in accordance with the Banking Act of 1933. were divided into commercial and investment banks. In 1933 In the United States, the Glass-Steagall Act was passed, which for many years determined the "legal framework" for regulating the US financial services market. In accordance with this Law, commercial banks focused their activities on traditional banking operations, they were prohibited from dealing with securities, with the exception of operations with state federal or municipal securities. Investment banks carried out long-term investments, as well as transactions with securities. The law provided for a number of restrictions on the activities of commercial banks and investment companies. In particular, this Law established a very restrictive list of securities transactions that banks could carry out; banned the practice of creating branches of banks engaged in operations with securities, and for companies operating in the securities market to carry out banking operations to raise funds for deposits, open and maintain customer accounts, make settlements, etc. types of banking operations; forbade directors, employees of investment companies to be simultaneously officials, directors, employees of banking companies.
However, at present, there is a tendency towards the universalization of banking operations. The need to find other ways to increase the profitability of banking operations was caused by increased competition between credit institutions, as well as the emergence of new opportunities in the context of the development of the financial market. The result of this search was a sharp increase in the number of operations carried out by the bank, as well as the development of forms of investment activity: financing of investment projects, leasing, managing a portfolio of customer investments, consulting services, etc. This circumstance was due to the relaxation of banking legislation, as well as the fact that in the implementation of banks' activities circumvented the existing law. At the same time, a number of large banks have begun to implement leasing transactions, as well as to create leasing companies. The participation of banks in project financing has increased, in which banks independently prepare an investment project or provide advice to clients, pay project costs, and often banks become co-owners of shares
established enterprises.
The desire to universalize banking activities is inherent in the credit systems of all developed countries, but each of them has
their characteristic features.
Application of banking system universalization directly
for the unstable Russian economy is due to the fact that universal banks have more development opportunities. The organization of investment banks in Russia has a special importance, as the Russian economy needs long-term investments. In turn, within the framework of the universal model, the formation of investment banks is possible through the creation of investment institutions as subsidiaries of universal banks, as well as through the creation of specialized banks, whose activities will be carried out on the basis of state guarantees and benefits. At the same time, the degree of state participation is determined by a clear balance of all market mechanisms. In turn, the non-intervention of the state can have consequences in the form of a collapse domestic economy and the collapse of the banking sector.
Most countries, faced with the crisis of the banking system, managed to prevent its destruction by using funds state budget and government loans. An analysis of the banking systems of various countries at the same time indicates a parallel development of a trend towards increased specialization of the activities of commercial banks. Thus, in countries with a developed market economy, an important place is occupied by specialized banks, whose main activity is aimed at the implementation of investment projects.
On the other hand, in countries with a universal credit system banks finance various kinds of companies not only by providing long-term loans, but also by acquiring their shares and bonds. At the same time, investment banks, which mainly carry out operations at their own expense, have a greater need for capital than commercial banks engaged in traditional banking services.
It should also be noted that the success of investment banks mainly depends on the degree of formation of the securities market. Based on the foregoing, we can say that the allocation of investment banks as a special type of financial institution implies a high degree of development of the securities market.
As for the Russian banking sector, it shows signs of the German model of a universal commercial bank. At the same time, large banks have significant stakes in major industrial companies, which gives banks the opportunity to control the intended use of the loan, as well as the financial position of the company as a whole. This scheme can be observed in financial and industrial groups, where banks play a leading role in regulating financial flows and investment projects. However, under these circumstances, the universal model is associated with increased risk in the bank's activities, since there is a relationship between the risks associated with investment activities and the risks of settlement and credit transactions banks. At the same time, the activity of the bank to a certain extent depends on the condition of large customers, whose funds are involved in the turnover.
2.2 Main activities of investment banks
It should be noted that activities to attract funding for emerging markets usually described as an investment banking. It goes without saying that the most simple definition investment bank will be as follows: an investment bank is a financial institution engaged in investment banking. However, this definition is not entirely accurate. It implicitly implies the specialization of this institution in investment banking. But you cannot specialize only in investment banking. The implementation of such activities is possible only within the framework of a truly universal institution, in which all other activities of an investment bank are sufficiently developed. Fundraising activities are impossible without well-organized and developed work in all other areas typical of an investment bank. Let us illustrate the impossibility of attracting financing without developed other areas. The bank decided to attract financial resources for its client by issuing the client's securities. Even the very first part of this work - the choice of a specific attraction instrument and its main parameters - he will not be able to carry out, since he will not know the market's attitude at the moment to certain instruments. Even if such a project has reached the stage of placement of securities, then at this stage it will stop. Investors will not buy securities, since no one convinced them that these securities are sufficiently reliable and profitable (and the bank will not be able to make a professional representation of its client due to the lack of analytical activities). In turn, brokers will not enter into transactions to purchase securities, since they do not know the seller, they have never worked with him.) It can be said that all other activities of an investment bank create the basis for the development of investment banking within this bank. On the other hand, investment banking is not only the most "prestigious" direction in the activities of an investment bank, but also the most profitable. Therefore, all large and ambitious companies in the securities market seek to receive funding projects (in other words, they seek to grow into an investment bank). In developed markets, investment banking activities are complemented by operations in the secondary securities market related to the provision of services for the restructuring of the client's business (mergers and acquisitions).
Investment bank services. In developed countries, investment banks provide their clients with the following services: to attract financial resources; business restructuring through mergers and acquisitions; brokerage; portfolio management; depository-custodial; providing advice to clients. To provide the above services, an investment bank develops several types of activities that can be divided into external (directed directly to the client and to counterparties that form services) and internal (creating the necessary prerequisites for the implementation of external activities). Now we can move on to the consideration of activities that bring profit, i.e. to the outside.
Proper investment banking. There are two main areas here: attracting funding; mergers and acquisitions. In addition, investment banks often actively trade in controlling stakes in small and medium-sized corporations not on behalf of clients to restructure their business, but in order to obtain speculative profits. At the same time, during the period when an investment bank holds one or another controlling stake, it can carry out financial rehabilitation of this enterprise, optimization of the finances of this corporation, as well as other measures aimed at increasing the market value of this block. Such activity is being carried out quite widely at present by some Russian investment companies. Attracting financing most often implies a form of placement of the client's securities, however, options for raising financing through the creation of venture capital enterprises and the use of investment lending mechanisms are not excluded. This type of activity naturally breaks down into a number of more specific types of activity: financial consulting for a client who wants to raise financial resources by issuing securities; underwriting syndication, i.e. creation and management of syndicates of underwriters; promotion of the client's securities on financial markets; servicing the client's securities in the secondary market. Typically, within the framework of investment banking, such a direction as corporate financing is singled out, which implies the attraction of financing for corporate clients, i.e. assistance in attracting additional capital by corporations - clients of the investment bank. Currently, only a very small proportion of investment banks are involved in raising finance for governments and municipalities, so for most other investment banks, the terms "investment banking" and "corporate finance" are essentially the same. Mergers and acquisitions for an investment bank operating in a country with a developed financial market, quite often become the main area of income. Most Russian enterprises and financial groups have not yet reached the level of development when there is a need for the services of an investment bank for mergers and acquisitions. In Russian conditions, mergers and acquisitions are often understood as operations with large blocks of shares. However, the activity of buying and selling individual enterprises is not identical to mergers and acquisitions. The activities of an investment bank during mergers and acquisitions can be divided into the following components: consulting activities to determine the best option for business restructuring; attracting financial resources for mergers and acquisitions; accumulation on the market of large blocks of shares at the request of the client (purchase of large blocks), sale of large blocks; restructuring of a separate company and sale of its parts; development and implementation of effective protection of the client against takeover.
Securities trading. We defined this type of activity as external due to the ability to directly sell brokerage services, i.e. services for buying and selling securities. At the same time, securities trading activities are also carried out as a tool to support investment banking activities (sales of placed securities) and asset management activities (purchases and sales of securities in the process of restructuring a securities portfolio). At the same time, in developed financial markets, trading in securities is understood not just as the process of concluding securities purchase / sale transactions, but the implementation of complex trading and arbitrage strategies, consisting of both many simple purchase / sale transactions and more complex transactions. In Russia today, securities trading almost always means unrelated buy/sell transactions, and only rarely do large institutions use more complex transactions. The organization of securities trading within an investment bank or a large investment company is a separate area of business and science, which has its own complex patterns and technologies. This is the type of activity that is mastered by market participants in the first place. In most cases, large Russian market participants have fairly high-tech subdivisions involved in securities trading.
Asset Management. Asset management (or investment management) is aimed at managing both the investment bank's own funds and the management of portfolios formed at the expense of clients' funds. From the client's point of view, an investment bank can provide resource management services, for example in the UK bond market, resource management services in the US stock market, as well as in any other market or sector, group of markets. In this case, the client can either invest and withdraw money on any day by contacting the manager, or do it only on certain days, or use the stock exchange for these purposes. From the point of view of an investment bank, all the funds that it manages are suppliers of financial resources to the overall portfolio of the investment bank, the structure of which is largely determined by the structure of the resources attracted through various funds. In addition to client resources, this portfolio also includes own funds. Managing this portfolio is called investment management. When managing investments, the recommendations of the analytical department of the bank are used. He also develops dynamic portfolio models that become targets for that part of the investment bank that carries out securities trading activities.
Depository - custody activity. The essence of this activity is storage, guardianship, guardianship, accounting of clients' securities, storage and accounting of own securities and other financial assets. Legally, in most cases, this type of activity is outside the scope of legal entity, acting as an investment bank, but this necessary part of the activity is aimed at providing comprehensive services. Therefore, technologically, this type of activity becomes an obligatory element of the activity carried out by a universal investment bank. Analytical research and development of recommendations. This activity in itself, as a rule, does not bring profit. On the contrary, it has become one of the most expensive in investment banks. Therefore, this type of activity can be classified as intermediate between external and internal activities of an investment bank. Modern investment banks in countries with developed financial markets are spending more and more money on the development of their research teams. One can point to at least two reasons for the bankers' love of research. Research and recommendations provided to clients are a kind of "face" of an investment bank, indicating its capabilities and indicating the quality of services of this bank. The first step in attracting a client is to present your research, recommendations, market assessments, forecasts. High-quality research work is the basis of successful investment management and fundraising activities. The higher the quality of analytical work in an investment bank, the more profitable asset management, the greater the volume of attracted financial resources, and the conditions for attracting are more profitable. To perform external activities, the investment bank also develops internal activities that provide normal operating conditions for those units that carry out external activities and make a profit. The largest items of income of an investment bank include: income from the provision of services to attract financing; income from managing your own portfolio; income from the provision of client portfolio management services; brokerage income. An investment bank initially begins to manage its own funds (or funds of the founders).
3.1 Prospects for the work of investment banks in the securities market
The dominant segment of lending to the population will remain consumer loans, the range of which is very wide - from cars and sophisticated household appliances to medical and tourist services. However, customer credit needs to improve the infrastructure. Expanding the circle of borrowers, involving new social groups with lower incomes and property into it, increases the risks of lending, which means that it will require more attention to the analysis of the borrower.
An important prerequisite for this will be the work of the insurance system bank deposits. There will be significant changes in investment processes and applied investment technologies:
The possibility of information and financial control over the use of investment resources of the investor in real time, remote at any distance from the place of investment of resources;
Implementation of unified information standards for collateral mechanisms, financial statements, presentation of projects and programs, enterprises, regions and states in information systems;
Creation of an integrated investment infrastructure (banking, legislative, organizational) for servicing investments.
Development and implementation of integral mechanisms and technologies for managing investment processes.
The basis for integrating the mechanisms and tools of the investment market, in my opinion, will be information technology, which will form (together with organizational) the basis of the pyramid of management decisions. All the rest (organizational, investment, financial, legislative) acquire a subordinate character and will develop on the basis of the leading trends in the development of information. The latter will be characterized by the following features:
Unification of informational reflection and up-to-date support, a deep description of each object of investment and business, which makes it possible to obtain prompt reliable information about this object anywhere in the world;
Legislative provision of the reliability of information at any level, coordination of such provision by interstate multilateral agreements of all countries of the world community;
Organizational support of ongoing transactions in the markets of goods, finance, services and investments in the Internet environment, unification of elements of economic law of the countries of the world that ensure the security of such transactions;
Final transfer of financial and banking business support to the environment of information and virtual technologies;
The legal framework of the global investment market will also represent a harmonious, balanced, multi-level system of laws and regulations built on the basis of information technology.
The banking system of Russia should already finally decide on the ways of its development against the backdrop of growing competition from foreign banks. According to analysts, there will be a restructuring of the banking system, mergers and acquisitions in the financial sector of the economy. It is expected that this process will last 2-3 years, as a result of which only the largest and most competitive banks will remain on the market.
According to leading analysts, the following scenario for the development of the bond market is possible in the next year and a half. In the absence of drastic changes in market regulation, it can be expected that the number of issuers will increase and the volume of transactions will increase. There will be an extension of the terms of borrowing, expansion of the range of industries whose enterprises will resort to issuing bonds. By the end of next year, there will be a significant increase in the turnover of the secondary market.
Currently, the shares of many companies listed on the stock market are undervalued. The general rule that has been developed by the world practice of the functioning of stock markets can be summarized as follows:
Legislative (and, first of all, international) acts should ensure the reliability of the provision of information about the investment market, projects and programs, investment applicants, production systems and enterprises, the fulfillment of obligations to investors, the provision of benefits and preferences to the latter for the period of resource development. Bills of the above direction should be a priority for consideration and adoption by our legislature.
On the basis of the main legislative acts and to ensure their functioning, an international legal framework, a unified system of accounting and reporting, an integral package of model legislative decisions should be created that allow the states of the world to quickly harmonize their legislative framework.
The development of investment institutions may be subject to the following changes and be determined by the following main trends:
First, investment institutions should increasingly focus on creating conditions for the penetration of foreign capital, creating favorable conditions for such penetration. We are talking about insurance of investment risks, taking into account the difference in foreign exchange rates national currencies, long-term provision of investment resources, liquidity of collateral assets and guarantees provided. It is the organizational structures that implement the above-mentioned functions that are the primary task of the near future for the subjects of the investment market.
Secondly, the development of investment tools will be carried out through information modeling of investment services and only then the alignment of the necessary (missing) of its material elements.
The organizational infrastructure of the investment market should allow the construction of financial multipliers, create the possibility of placing relatively cheap resources under the provision of various instruments and guarantees, the level of profitability, the level of investment risks. The investment infrastructure being created should be understandable and familiar to the investor, able to comprehensively serve the investor himself, his investment institution, and investment seekers.
International cooperation is one of the real ways to attract significant investment resources to the economies of states. At the same time, international cooperation closes that niche of the investment market that is not interesting for national and regional investment institutions - the niche of small projects.
Russian commercial banks will be significant investors in the ruble corporate bond market, while their share in this segment will decrease in the optimistic scenario (if corporate bond yields fall) and increase otherwise.
Prospects for the development of the corporate bonded loans market at the level of our region will depend primarily on the nature of the region's leadership and economic policy, as well as on the investment activity of enterprises in need of additional financing.
The interest of commercial banks in issuing their own shares and placing them on the open market can be explained by a number of circumstances. First of all, this is inflation, which constantly devalues the bank's own capital and at the same time causes a sharp increase in "unmanaged" deposits (balances on settlement accounts), which leads to a violation of the standards of the Central Bank of the Russian Federation. Inflation deprives banks of the opportunity to attract long-term deposits, therefore, in order to make relatively long-term investments, banks in ever-increasing amounts must use their own capital. In addition, high rates bank shares are considered by banks as a way to strengthen their positions in the market, expand their sphere of influence and attract new customers.
At the same time, in the real conditions of the Russian economy, in which the securities market has not been popular lately, because. investors are not yet able to invest funds for a long time. But with the development of the securities market, the fall in inflation rates, it will be possible to hope that the structure of debt obligations of banks will change, and banks will issue more bonds. The advantage of bonds is that they can be used as a means of payment. The issue of a bond also requires the registration of a prospectus. That is, the information will be available to investors, and they will be able to choose the right priority areas for investment.
According to Rosstat (Table 1), in 2010 the Russian economy received 114.746 billion dollars of foreign investment, which is 40% more than in 2009. Of these: direct investment decreased by 13.2% and amounted to 13.810 billion dollars; the volume of portfolio investments amounted to 1.076 billion dollars (growth by 21.9%); other investments were received in the amount of 99.86 billion dollars (+53.3%).
3.2 Development of project financing (investment lending)
One of the most acute problems of Russia's economic development at present is the increase in investment activity, which requires the formation of an effective investment market. The complexity of its formation and the corresponding market economy The mechanism for financing investments lies in the fact that in the Russian economy the necessary market infrastructure is just beginning to take shape and develop, which ensures the free exchange of information between all business entities, there are no reliable and adapted tools for financing investment activities. One of these tools is project financing, which became widespread in the last decades of the 20th century and has been successfully used in many industries to implement large investment projects.
Due to the peculiarities of development and the current institutional environment, project financing in the form in which it is used by Western national and transnational corporations cannot be applied in Russia. A certain transformation of the approaches developed by foreign practice is necessary, and their adaptation to modern Russian conditions, the hallmark of which is instability, imperfection and incompleteness of information. The study and theoretical understanding of the developed developed countries approaches to the organization of project financing, combined with a scientific generalization of our own experience in the field of investment financing, can become the basis for the formation of an effective system of project financing.
Project financing - financing of investment projects, characterized by a special way of ensuring the return on investment, which is based on the investment qualities of the project itself, the income that the newly created or restructured enterprise will receive in the future.
The specific mechanism of project financing includes an analysis of the technical and economic characteristics of an investment project and an assessment of the risks associated with it, and the basis for the return on invested funds is the project's income remaining after covering all costs.
A feature of this form of financing is also the possibility of combining various types of capital: banking, commercial, state, international. Unlike a traditional credit transaction, the risk can be dispersed between the participants of the investment project.
As sources of financing, funds from international financial markets, specialized export credit agencies, financial, investment, leasing and insurance companies, long-term loans from the International Bank for Reconstruction and Development, the International Finance Corporation, and the European Bank for Reconstruction and Development can be attracted. Large banks involved in the financing of investment projects have specialized divisions for the organization, control and analysis of project implementation.
Taking into account the importance of coordinating investment activities in Russia, the Federal Center for Project Finance was created, the purpose of which is to effectively promote the attraction of financial resources, including external financing, and ensuring the implementation of investment projects that have a priority for the national economy.
At the same time, existing legislation complicates the value-added implementation of projects. In particular, not regulated legal framework project financing in various market sectors: provision of concessions and guarantees, insurance, consortium law, stock market, trust, leasing operations, etc.
The development of project finance in the country is hampered by an unfavorable investment climate, insufficient resources for large-scale financing of capital-intensive projects, low qualifications of project finance participants, and other factors that exacerbate project risks. Under the circumstances, solving the problem requires integrated approach taking into account the interests of various parties.
Important components of this approach are the strengthening of the role of state guarantees for project risk insurance, including the provision of guarantees to banks participating in the financing of investment projects and programs included in the system of state priorities, tax incentives for investment mechanisms, and the development of interbank cooperation in the field of joint lending to investment projects.
It is essential for the development of project financing to study the possibilities of adapting the experience of world practice to Russian conditions, including in the field of developing methodological approaches that ensure an increase in investment efficiency. Solving the problem of increasing the efficiency of investment (regardless of the specific form of investment) is closely related to the analysis of the investor's ability to mobilize own and borrowed sources, the investment attractiveness of the external environment, and the choice of investment objects in order to determine an acceptable level of risk while achieving the required return.
Conclusion
The concept of "investment bank" is characterized by private and general definitions. According to a private definition, an investment bank is a large financial institution that operates at the interstate, state (national) and regional levels and attracts direct cash investments in the real sector of the economy or the economy of a particular country and regulates their intended use. According to the general definition, an investment bank is a large productive financial institution engaged in financial intermediation and mobilization of financial resources in the financial market for the purpose of lending and long-term financing of business entities of various levels; regulating the turnover of financial instruments by creating new products and trading them on the exchange and over-the-counter markets.
The key functions of an investment bank are the intermediary function and the function of regulating financial market segments.
By carrying out financial intermediation, an investment bank implements several sub-functions at once, namely: the accumulation and redistribution of funds, risk reduction through its diversification, and reduction of distribution costs.
Other, less significant functions of an investment bank include the functions of redistributing information, turning wholesale securities into retail ones, and creating an information market space.
The role of a modern investment bank in the economy is as follows: to create a specific product that contributes to the increment of value and the total social product; be a structure-forming element of the financial market, streamlining and streamlining the turnover of certain financial instruments; contribute to ensuring the continuity of production and circulation of the product, to accelerate the reproduction process as a whole; to promote the creation of new branches of production, the speedy introduction of scientific and technological ideas and achievements into production, the re-equipment of existing branches of production with modern equipment and technologies.
Ideally, an investment bank provides a full range of services related to investments. He is engaged in raising funds for the development of production, mergers and acquisitions, restructuring of enterprises, searching for a strategic investor, trading in bonds and stocks, etc. The investment bank also manages the client's investment portfolio, conducts transactions on the stock market on behalf of the client, and also helps its client make the most correct decision in the client's activities in the stock market.
In world practice, it is customary to distinguish two main models of investment banking systems: segmented (American) and universal (German).
The above systems are based on the specific distribution financial risks. In the American system, risks are largely divided into commercial and investment risks and are held through the insurance procedure. In the German system, risk control is provided by universal commercial banks, which are at the same time the main subjects of the financial market.
Using American system satisfaction of the interests of industrial companies occurs mainly through the placement of securities in the financial market. In turn, long-term loans from commercial banks play a less significant role in financing. At the same time, the participation of banks in the ownership of various corporations is limited at the legislative level.
The German system is characterized by the predominance of the credit method, while the main method that provides effective use credit funds is the establishment by banks of control over borrowers through participation in its ownership.
Currently, there is a tendency towards the universalization of banking operations. The need to find other ways to increase the profitability of banking operations was caused by increased competition between credit institutions, as well as the emergence of new opportunities in the context of the development of the financial market. The result of this search was a sharp increase in the number of operations carried out by the bank, as well as the development of forms of investment activity: financing of investment projects, leasing, managing a portfolio of customer investments, consulting services, etc. This circumstance was due to the relaxation of banking legislation, as well as the fact that in the implementation of banks' activities circumvented the existing law. The participation of banks in project financing has expanded (financing of investment projects, characterized by a special way of ensuring the return of investments, which is based on the investment qualities of the project itself, the income that the newly created or restructured enterprise will receive in the future), in which banks independently prepare an investment project or provide consulting clients, pay the costs of the project, and often banks become co-owners of the shares of the enterprises being created.
The development of investment institutions will be subject to the following changes and be determined by the following main trends: globalization of the institutions themselves, their merger and internationalization, focus on creating conditions for the penetration of foreign capital, creating favorable conditions for such penetration, information modeling of investment services.
List of sources used
securities: dipl. Job. - M., 2003. - 106 p.
Annex A
(reference)
Table 1 - The value and growth rates of investments in the Russian Federation
|
years |
Foreign investments - total (million dollars) |
Investments in fixed capital in the Russian Federation (million rubles) |
Growth rates compared to the previous year, % |
|
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An investment bank is a financial institution that organizes for large companies and governments to raise capital in the global financial markets, provides consulting services when buying and selling a business, brokerage services, being the leading intermediary in trading stocks and bonds, derivative financial instruments , currencies and commodities, and produces analytical reports for all markets in which it operates.
In the English-Russian Banking Encyclopedic Dictionary by B. G. Fedorov, an investment bank is defined as a bank specializing in organizing the issue, guaranteeing the placement and trading in securities; also advising clients on various financial matters, focusing mainly on wholesale financial markets (in the US), or as a non-clearing bank specializing in medium and long-term investments in small and medium-sized companies (in the UK).
An investment bank is a financial intermediary that can perform many services. These include underwriting, acting as an intermediary between the issuer of securities and investors, assisting with mergers and other corporate reorganizations, and brokering services for institutional clients.
Investment banks are not banks in the classical sense, since they do not perform basic banking operations - deposit and credit, but act as financial intermediaries for legal entities and individuals, organizing the issuance of securities and making transactions with them on the stock market. In developed markets, investment banking activities are complemented by operations in the secondary securities market related to the provision of services for the restructuring of the client's business (mergers and acquisitions).
AT Russian legislation there is no clear definition of the concept of an investment bank. Analysis legislative framework stock market in Russia allows us to conclude that commercial banks can act as investment banks.
Today, the specialization of banks as investment banks is a completely independent and voluntary decision of the owners and management. KIT Finance Investment Bank, BCS - Investment Bank, etc. position themselves as Russian investment institutions. At the same time, they, as a rule, are not limited to investment activities only and are also ready to provide other services to their clients.
The differences between commercial and investment banks, first of all, are that they work with different financial instruments through which the redistribution of monetary resources is carried out. The basis of the activity of a commercial bank is direct bank lending, settlement and cash services and attraction of funds in deposits. The basis of an investment bank is operations with securities (underwriting, raising funds based on the issue of securities, brokerage, dealer operations, trust management of securities, investment advice on transactions with securities).
The main characteristic features of an investment bank are:
- a large universal commercial organization that combines most of the permissible activities in the securities market and in some other financial markets;
- the main activity is to attract financing through securities;
- operates primarily in the wholesale financial markets;
- gives priority to medium- and long-term investments;
- securities are the basis of its portfolio, while most investment banks are most focused on non-government securities.
There are currently two types of investment banks:
- banks of the first type (engaged exclusively in trading and placement of securities);
- banks of the second type (engaged in long-term lending).
Investment banks of the first type act as founders, organizers of the issue of securities, as well as guarantors that act on a commission basis or pay a predetermined amount, regardless of the subsequent placement of shares and bonds. On behalf of corporations and the state in need of long-term investments and resorting to the issuance of shares and bonds, investment banks take on the responsibility of determining the size, conditions, period of issue, choosing the type of securities, as well as placing and organizing secondary circulation.
Investment banks of the first type guarantee the purchase of issued securities by purchasing and selling them at their own expense or by organizing banking syndicates for this, provide loans to buyers of shares and bonds.
Institutions of this type currently conduct operations with securities of the corporate sector of the economy. By placing shares and bonds, they serve as intermediaries for the receipt of funds by industrial, transport and trade enterprises. They also perform functions related to raising capital, servicing the securities market:
- engage in secondary placement of shares and bonds;
- act as intermediaries in the placement of international securities (Eurobonds and Euroshares) on the Eurocurrency market;
- advise corporations on investment strategy, accounting and reporting.
Banks of the second type differ significantly from banks of the first type in organizational structure, functions and operations. They can be based on a joint-stock basis, a mixed form of ownership with the participation of the state, and a purely state-owned one. Their main function is medium-term and long-term lending to various sectors of the economy, as well as special targeted projects related to the introduction of advanced technologies and the achievements of the scientific and technological revolution.
In Russia, investment banks are most actively developing the following types of services:
1. Feasibility study of investment projects, including an assessment of the potential efficiency and feasibility of projects, development of investment programs and preparation project documentation in accordance with international standards.
2. Formation of optimal emission portfolios (development of programs for attracting investments by enterprises, selection of tools for attracting financial resources, development of schedules for the issue of debt and equity securities with justification of the optimal ratio between them, assessment of the possibility of attracting funds in various regions and substantiation of a rational level of return on issued securities).
3. Underwriting (placement of issuers' securities on the market). In the Russian version, underwriting, as a rule, is carried out according to the principle of commission trading in shares, in which the underwriter undertakes to make every effort to sell the shares, but does not assume a firm obligation to place.
4. Formation of optimal individual portfolios of securities for large investors based on the analysis of the current state of the financial market and the construction of target investment functions for a given date. Sometimes this type of service is supplemented by a trust (current management of investment portfolios by agreement).
5. Brokerage services (completion of civil law transactions with securities as an attorney or commission agent), as well as dealer services (completion of transactions with securities on one's own behalf and at one's own expense by quoting securities).
6. Consulting on investment issues, selection of a foreign investor for enterprises, selection of investment subjects for investors.
To provide the above services, an investment bank develops several types of activities that can be divided into external (directed directly to the client and to counterparties that form services) and internal (creating the necessary prerequisites for the implementation of external activities).
Investment banking is not only the most "prestigious" direction in the activity of an investment bank, but also the most profitable. Therefore, all large and ambitious companies in the securities market seek to receive funding projects (in other words, they seek to grow into an investment bank).
In developed markets, investment banking activities are complemented by operations in the secondary securities market related to the provision of services for the restructuring of the client's business (mergers and acquisitions).
In foreign investment banking, there are two main areas:
- attraction of financing;
- Mergers and acquisitions.
In addition, investment banks often actively trade in controlling stakes in small and medium-sized corporations not on behalf of clients to restructure their business, but in order to obtain speculative profits. At the same time, during the period when an investment bank holds one or another controlling stake, it can carry out financial rehabilitation of this enterprise, optimization of the finances of this corporation, as well as other measures aimed at increasing the market value of this block. Such activity is being carried out quite widely at present by some Russian investment companies.
Attracting financing most often implies a form of placement of the client's securities, however, options for raising financing through the creation of venture capital enterprises and the use of investment lending mechanisms are not excluded.
This type of activity naturally breaks down into a number of more specific types of activity:
- financial consulting for a client wishing to raise financial resources by issuing securities;
- underwriting syndication, i.e. creation and management of syndicates of underwriters;
- promotion of the client's securities on financial markets;
- Servicing the client's securities in the secondary market.
Typically, within the framework of investment banking, such a direction as corporate financing is singled out, which implies the attraction of financing for corporate clients, i.e. assistance in raising additional capital by corporations - clients of an investment bank. Currently, only a very small proportion of investment banks are involved in raising finance for governments and municipalities, so for most other investment banks, the terms "investment banking" and "corporate finance" are essentially the same.
For an investment bank operating in a country with a developed financial market, mergers and acquisitions often become the main area for generating income. Many Russian enterprises and financial groups have not yet reached the level of development when there is a need for the services of an investment bank for mergers and acquisitions. In Russian conditions, mergers and acquisitions are often understood as operations with large blocks of shares. However, the activity of buying and selling individual enterprises is not identical to mergers and acquisitions. The activities of an investment bank during mergers and acquisitions can be divided into the following components:
- consulting activities to determine the best option for business restructuring;
- attracting financial resources for mergers and acquisitions;
- restructuring of a separate company and the sale of its parts;
- development and implementation of effective protection of the client from absorption;
- accumulation on the market of large blocks of shares by order of the client (purchase of large blocks), sale of large blocks.
Securities trading activities are carried out as a tool to support investment banking activities (sales of placed securities) and asset management activities (purchases and sales of securities in the process of restructuring a securities portfolio). At the same time, in developed financial markets, trading in securities is understood not just as the process of concluding securities purchase / sale transactions, but the implementation of complex trading and arbitrage strategies, consisting of both many simple purchase / sale transactions and more complex transactions.
The organization of securities trading within an investment bank or a large investment company is a separate area of business and science, which has its own complex patterns and technologies. This type of activity is mastered by market participants in the first place. In most cases, large Russian market participants have fairly high-tech subdivisions involved in securities trading.
One of the activities of investment banks is the provision of financial analytics on securities traded by the bank. This activity in itself, as a rule, does not bring profit. On the contrary, it has become one of the most expensive in investment banks. Therefore, this type of activity can be classified as intermediate between external and internal activities of an investment bank.
Modern investment banks in countries with developed financial markets are spending more and more money on the development of their research teams. One can point to at least two reasons for the bankers' love of research.
1. Research and recommendations provided to clients are a kind of "face" of an investment bank, indicating its capabilities and indicating the quality of services of this bank. The first step in attracting a client is to present your research, recommendations, market assessments, forecasts.
2. High-quality research work is the basis of successful investment management and fundraising activities. The higher the quality of analytical work in an investment bank, the more profitable asset management, the greater the volume of attracted financial resources, and the conditions for attracting are more profitable.
Asset management (or investment management) is aimed at managing both the investment bank's own funds and the management of portfolios formed at the expense of clients' funds. An investment bank may provide resource management services, for example, in the US stock market, resource management services in the British bond market, as well as in any other market or sector, group of markets. In this case, the client can either invest and withdraw money on any day by contacting the manager, or do it only on certain days, or use the stock exchange for these purposes.
All funds managed by an investment bank are suppliers of financial resources to its general portfolio, the structure of which is largely determined by the structure of resources attracted through various funds. In addition to client resources, this portfolio also includes own funds. Managing this portfolio is called investment management.
When managing investments, the recommendations of the analytical department of the bank are used. He also develops dynamic portfolio models that become targets for that part of the investment bank that carries out securities trading activities.
The essence of this activity is storage, guardianship, guardianship, accounting of clients' securities, storage and accounting of own securities and other financial assets. Legally, in most cases, this type of activity is outside the scope of a legal entity that performs the functions of an investment bank, but this necessary part of the activity is aimed at providing comprehensive services. Therefore, technologically, this type of activity becomes an obligatory element of the activity carried out by a universal investment bank.
To perform external activities, the investment bank also develops internal activities that provide normal operating conditions for those units that carry out external activities and make a profit.
The largest items of income for an investment bank include:
- Income from the provision of services to attract financing;
- income from own portfolio management;
- Income from the provision of customer portfolio management services;
- Income from the provision of brokerage services.
An investment bank initially begins to manage its own funds (or funds of the founders). Profitability from such activities can fluctuate in the modern Russian market within significant limits (from losses of 100% per annum to profits of several thousand percent per annum).
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 of securities, banks invest in improving their own business, including opening branches, developing 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. There are different methods of managing an investment portfolio, one of which is the tiered 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.
