Abstract
The article presents the results of risk analysis in financing investment projects. In the example of three commercial banks, the relationship between the factors causing risks and the dynamics of the volume of financing of investment projects was modelled using the two-step generalised method of moments - 2SGMM. According to the results of econometric analysis, among the factors, risk assets, risk profile, interest income and investment activity of banks have a significant positive impact on the dynamics of investment loans.
Highlights
Banking institutions play an important role in creating an optimal investment climate and provide investment projects with the necessary financial resources
In the United States alone, there are more than 3,400 investment banks, which account for 46 per cent of International Journal of Management Science and Business Administration, vol 7, issue 5, pp.38-42, July 2021
The most influential factor is the increase in interest income, 1 per cent growth leads to an increase in the volume of other investment loans by 0.5 per cent
Summary
Banking institutions play an important role in creating an optimal investment climate and provide investment projects with the necessary financial resources. Banks are viewed as "accumulators of capital", directing the necessary funds to promising sectors of the economy and providing them with financial and consulting services. The lessons from the global financial crisis have proved the need for foresight in project financing, the ability to measure existing and potential risks, diversify the investment portfolio and rationally manage investment resources. Last year the total volume of investment lending in the world decreased by 2.1 per cent compared to 2019 and amounted to 109 billion US dollars. As noted above, based on the causes and consequences of the global financial crisis, the International Monetary Fund has taken steps to regulate the lending and portfolio practices of investment banks. In the United States alone, there are more than 3,400 investment banks, which account for 46 per cent of International Journal of Management Science and Business Administration, vol 7, issue 5, pp., July 2021
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