Abstract
The growing investment activity of banking sector organisations is an important condition for securing diversification of assets and obtaining additional sources of income, as well as maintaining the required level of liquidity. Economic crises and instability of stock markets affect the investment policy of a bank, the quality of its investment portfolio, and the scope of investment transactions with securities. The purpose of the research is to carry out a comprehensive analysis of the investment mechanism of the Russian banking sector and its organisation, to characterise the investment policy and risks connected with investment activities, to determine the criteria for financial instruments included in the structure of investment portfolios of Russian credit institutions. The authors used the analytical, regulatory, comparative, and statistical methods of research to define the dynamics, composition, and structure of investment portfolios and risks involved in the business of financial and credit institutions, in the course of the formation of investment policy. It was concluded, as a result of the research, that enhanced performance, stability, and liquidity of credit institutions were conditioned by the structure and quality of portfolio investments. Improving the efficiency of the banking investment mechanism is a priority area of development, for strengthening the competitive positions of credit institutions in the national banking system. The article presents conclusions regarding the quality of investment operations and transactions with securities effectuated by banks at the present stage. The authors undertook a comparative analysis of indicators characterising the structure of investment assets of the banking sector, grouped by types of investment portfolio. Proceeding from the above, particular directions were developed for practical use, that allow for efficient selection of stock market instruments for inclusion in the investment portfolio of credit institutions in the conditions of high volatility and uncertainty of the financial market.
Highlights
Investment operations, in particular, portfolio investments, represent one of the most profitable activities in the banking sector
The Russian banking sector demonstrates the following dynamics of assets and capital growth, as based on the official data published by the Bank of Russia in the form of analytical reports for the period from 2016 to 2018 (Figure 1)
The situation in the financial market improved by the end of 2018-2019, which is characterised by the relative stability of the national currency exchange rate and other indices reflecting the efficiency of the pursued monetary policy (Abramov et al, 2020)
Summary
Investment operations, in particular, portfolio investments, represent one of the most profitable activities in the banking sector. An important factor in setting the strategy of a commercial bank in the market of securities is the formation and approval of investment policy which may be characterised as a set of measures aimed at development and realisation of actions for managing security portfolios; identifying the optimal scope of investment resources; assessing the rise in incomes from investment in securities. The main condition for the efficient investment policy of commercial banks is the development of profitable strategy in the stock институтов при формировании инвестиционной политики использовались аналитический, нормативный, сравнительный и статистический методы исследования. Повышение эффективности банковского инвестиционного механизма является приоритетным направлением роста для укрепления конкурентных позиций кредитных организаций в национальной банковской системе. Разработаны для практического использования направления, позволяющие осуществлять эффективный отбор инструментов фондового рынка для включения в инвестиционный портфель кредитных организаций в условиях высокой волатильности и неопределенности финансового рынка
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