ON THE REGULATION OF INVESTMENT BANKING IN RUSSIA

2021 ◽  
pp. 34-40
Author(s):  
A. V. Ramazanov ◽  
Keyword(s):  
Commercial Banks ◽  
Stock Exchange ◽  
Investment Banking ◽  
Equity Capital ◽  
Securities Market ◽  
Security Market ◽  
Financial Risks ◽  
Negative Consequences ◽  
Treasury Bills ◽  
The Usa

Analytical documents of the Bank of Russia and financial statements of large Russian banks indicate the growth in incomes from operations with securities within the gross share of revenues of commercial banks. In the world, there are cases of excessive activity of commercial banks in the security market (the Great Depression of 1929–1933 in the USA, default on state treasury bills in Russia on the 17th August 1998), which led to negative consequences for bank clients. The author analyzed peculiarities of investment transactions conducted by commercial banks in Russia. The author gives recommendations to reduce financial risks for the commercial banks’ customers and promote the attractiveness of the investment banking products. The author’s concept of regulation of banking activity in Russia consists of two directions: regulation of classical banking (income from lending operations exceeds income from operations in the securities market) and regulation of investment banking (the predominance of investment operations). The author justifies the necessity of the introduction of mandatory insurance of funds invested in equity securities of Russian issuers admitted to circulation on the Moscow Stock Exchange in the event of bankruptcy of issuers. The paper critically evaluates the recommendation of the Bank of Russia that professional participants in the securities market should not offer complex investment products to unqualified investors as this restricts the application of derivative securities for hedging financial risks. The author suggests the requirements for the equity capital of professional participants of the securities market and the methodology for calculating the equity capital separately for classical and investment banks.

scholarly journals PARAMETRIZATION OF THE MECHANISM OF FINANCIAL RISK MANAGEMENT IN THE DIGITAL SECURITIES CIRCULATION

2019 ◽  
pp. 77-83
Author(s):  
Oleksandr Volodmyrovych Lutskevych ◽  
Keyword(s):  
Risk Management ◽  
Social Life ◽  
Financial Risk ◽  
State Regulation ◽  
Securities Market ◽  
Financial Risks ◽  
Negative Consequences ◽  
Management Mechanism ◽  
Financial Risk Management ◽  
The Impact

Urgency of the research. Digital technologies are transforming all spheres of social life, and the financial sphere is no exception. In general, such trends cannot but leave an imprint on approaches to managing the financial risk of digital securities. Target setting. Currently, scientific and methodological support for the formation of a mechanism for managing the financial risks of digital securities is in the early stages of development, while the quality of state regulation and supervision of participants in digital securities directly depends on the effectiveness of the current mechanism for managing such risks. Actual scientific researches and issues analysis. Theoretical and applied aspects of the securities market, features of the impact of financial innovations and financial risk management in the field of securities circulation, are researched by V. Bodrov [1], O. M. Kovaleva [2], I. V. Krasnova [3], N. V. Tkachenko [4], Yu. B. Kolupaeva [5] and others. Uninvestigated parts of general matters defining. The methodology of formation the mechanism for managing the financial risks of digital securities needs more precise research. The research objective. Deepening the scientific understanding of the term "financial risk management mechanism for the circulation of digital securities" will ensure to outline ways of increasing the efficiency of this financial instrument usage. The statement of basic materials. This article analyzes the essence of the term "financial risk management mechanism". The construction of the mechanism has been adapted to the specifics of digital securities risk management. Conclusions. The essence of the mechanism of financial risks management of digital securities circulation is improved due to application of a set of methods for identification, quantitative and qualitative analysis, measures to prevent realization and / or reduction of negative consequences of financial risks of digital securities circulation, ways of control over some events.

scholarly journals FINANCIAL RISKS OF THE BANK ON THE STOCK MARKET

2019 ◽  
Vol 7 (2) ◽  
pp. 71-75
Author(s):  
Вадим Макаров ◽  
Vadim Makarov
Keyword(s):  
Stock Market ◽  
Commercial Banks ◽  
Investment Strategy ◽  
Securities Market ◽  
Financial Risks ◽  
Financial Instruments ◽  
Composition And Structure

The article describes the role of commercial banks as professional participants of the stock market and presents an analysis of the activities of PJSC "SBERBANK" in securities market. As part of the analysis, the composition and structure of the Bank's assets were considered, the risks of the investment strategy were determined; the Bank's investments in financial instruments were evaluated, grouped by portfolios and by types of securities. Based on the study, priority directions of the investment strategy of PJSC "SBERBANK" on the stock market is determined.

scholarly journals SECURITY MARKET UNDER CONDITIONS OF COVID-19

2021 ◽  
pp. 49-54
Author(s):  
Т. Коchetova ◽  
А. Sovgir
Keyword(s):  
Economic Policy ◽  
Global Economy ◽  
Securities Market ◽  
Modern World ◽  
Security Market ◽  
Negative Consequences ◽  
Demographic Indicators ◽  
The World ◽  
Global Statistics ◽  
The Impact

The article is devoted to the analysis of the state of the international securities market during a pandemic. The fundamentals of the functioning of the securities market, technologies for conducting various transactions with securities during the quarantine period associated with the Covid-19 epidemic are considered. The results of the impact of the COVID-19 pandemic on the global economy at the end of 2020 were reviewed. The study uses an analytical approach based on the analysis of global statistics on COVID-19. The main negative trends of the modern world economy caused by the increase in economic costs under the influence of the spread of the COVID-19 pandemic are summarized. The study used demographic indicators of the countries of the world, data on the dynamics of oil prices, stock indices, and statistical data on world trade. Based on the analysis of economic policy measures taken in the leading countries of the world to smooth out the negative consequences of the spread of the global COVID-19 pandemic, proposals were formulated for the economic policy of conducting operations in the securities market in the context of the COVID-19 pandemic.

scholarly journals Loan Loss Provision and the Profitability of Commercial Banks: Evidence from Jordan

2016 ◽  
Vol 11 (12) ◽  
pp. 242 ◽  
Author(s):  
Mohammad Alhadab ◽  
Saba Alsahawneh
Keyword(s):  
Commercial Banks ◽  
Negative Impact ◽  
Stock Exchange ◽  
Negative Consequences ◽  
Loan Loss ◽  
Return On Assets ◽  
Return On Equity ◽  
Loan Loss Provision ◽  
Amman Stock Exchange ◽  
The Impact

<p>The purpose of this study is to examine the impact of loan loss provision on the profitability of Jordanian commercial banks. While the impact of loan loss provision on the profitability of banks has been examined by prior research, this study is the first to examine this relationship using Jordanian data. By examining a Jordanian sample of 13 banks that listed on Amman Stock Exchange (ASE) over the period 2004-2014, this study provides the first evidence that loan loss provision has a negative impact on the profitability of Jordanian commercial banks. This evidence suggests that Jordan banks adjust their loan loss provision due to several motives and, this in turn, leads to negative consequences for their profitability. Return on assets (ROA) and return on equity (ROE) are employed as a proxy of the profitability in this study. </p>

scholarly journals RESEARCH OF THE MARKET STRUCTURE OF RUSSIAN CORPORATE BONDS (EXAMPLE OF THE FUEL AND ENERGY COMPLEX AND HEAVY INDUSTRY)

2018 ◽  
pp. 03-09
Author(s):  
L. V. Mazur ◽  
M. A. Shatalov
Keyword(s):  
Economic Development ◽  
Stock Exchange ◽  
Corporate Bonds ◽  
Equity Capital ◽  
Corporate Bond ◽  
Securities Market ◽  
Financial Resources ◽  
Heavy Industry ◽  
Corporate Securities ◽  
Business Entities

An important direction for the stabilization of economic development is the existence of effective mechanisms for attracting financial resources by business entities. Due to its investment capacity, Russia’s corporate securities market plays an important role in the financial system of the state. The need for economic recovery (after crisis, military-political, sanction and other force majeure circumstances) also requires the widespread use of corporate securities as equity capital raising instruments. The formation of the corporate securities market enables the financing of the needs of economic entities in the three institutional sectors – financial, non-financial corporations and households. In spite of the importance of access to financial resources of contractors of all institutional sectors, financing of the sector of non-financial corporations (enterprises-subjects of the real sector of economy) in today’s conditions determines the rates and proportions of economic development. Enterprises – market participants decide the issue of attracting the necessary resources through the issue of various equity and debt corporate securities. This determines their investment position in capital markets and, at the same time, reveals the ability to use the investment potential of the corporate securities market.In this regard, the article deals with the peculiarities of the formation of the market for Russian corporate bonds. Various indexes of corporate bonds of the Moscow Stock Exchange are considered. A detailed analysis of the placement of corporate bond loans in the sectors of the fuel and energy industry and heavy industry has been conducted. The main dominant industries, attractive for investors in recent years, as well as branches in which the investment decline is observed, are revealed.The conducted researches can serve as the basis for the development of practical recommendations for improving the efficiency of the functioning of the corporate securities market.

THE EFFECT OF ZAKAT AND ISLAMIC CORPORATE SOCIAL RESPONSIBILITY (ICSR) ON COMPANY PERFORMANCE (Empirical Study of Sharia Commercial Banks Listed on the Indonesia Stock Exchange on 2013-2017)

2019 ◽  
Vol 2 (1) ◽  
Author(s):  
Eva Fauziah Ahmad
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Descriptive Analysis ◽  
Company Performance ◽  
Simultaneous Test ◽  
Sample Data ◽  
Public Banks ◽  
Corporate Social

The aims of the Research is to examine the influence of zakat and Islamic Corporate Social Responsibility (ICSR) about effort of the companies in Sharia public banks enrolled on the Indonesia Stock Exchange in 2013-2017The method of the Research are used descriptive analysis techniques and verificative analysis. The population of the Research were 12 Sharia Retail Bank that has been enrolled on the Indonesia Stock Exchange in 2013-2017. The sample of this Research were 8 Islamic Commercial Banks multiplied by 5 years observation into 40 sample data, and the technique were used purposive sampling. The analytical instrument are used multiple regression analysis with the help of SPSS version 21.0The Results are showed that partially zakat had an effect on effort of the company, while ICSR had no effect on it. Simultaneous test shows that zakat and ICSR have an effect on effort of the company.

STUDY OF CAMEL RATING SYSTEM IN BANKING SUPERVISION- A CASE STUDY OF NEPAL BANGLADESH BANK LTD

2018 ◽  
Vol 1 (3) ◽  
pp. 74-96
Author(s):  
Dr. S.U. Gawde ◽  
Prof.. Alekha Chandra Panda ◽  
Prof. Devyani Ingale
Keyword(s):  
Banking Sector ◽  
Capital Adequacy ◽  
Rating System ◽  
Financial Risks ◽  
Economic Activities ◽  
Effective Measure ◽  
Critical Elements ◽  
Financial Soundness ◽  
The Usa ◽  
Asset Quality

The banking sector  plays in important role in the country’s economy, acting as an intermediary to all industries. As the banking sector has a major impact on the economy as a whole. Performance evaluation of the banking sector is an effective measure and indicator to check the soundness of economic activities of an economy. Many methods are employed to analyse banking performance. One of the popular methods is the CAMELS framework, developed in the early 1970’s by federal regulators in the USA. The CAMELS rating system is based upon an evaluation of six critical elements of a financial institution’s operations: Capital adequacy, Asset quality, Management soundness, Earnings and profitability, Liquidity, and Sensitivity to market risk. Under this bank is required to enhance capital adequacy, strengthen asset quality, improve management, increase earnings, maintain liquidity, and reduce sensitivity to various financial risks. In the present study an attempt was made to evaluate the performance & financial soundness of NEPAL BANGLADESH BANK LTD using CAMEL approach. Quantitative parameters are computed and updated on a quarterly basis while in respect of the qualitative parameters the ratings / marks given at the time of previous on-site examination

Financial Risks of the Bank: Assessment and Mechanism of Neutralization

2020 ◽  
Vol 22 (1) ◽  
pp. 6-12
Author(s):  
Nelia Volkova ◽  
◽  
Alina Mukhina ◽  
Keyword(s):  
Risk Assessment ◽  
Financial Stability ◽  
Financial Risk ◽  
Stable Operation ◽  
Financial Risks ◽  
Negative Consequences ◽  
Conceptual Approach ◽  
Relevant Today ◽  
Banking Institution ◽  
The Impact

Abstract. Introduction. The issue of financial risk management of commercial banks is quite relevant today, because the activity of banks is the most risky of all. The presence of risks in banking can lead to unexpected losses, namely the loss of own resources. That’s why for the stable operation of the bank without loss the priority is to assess the financial risks, which is the basis for their further neutralization. Purpose. The purpose of the article is to develop conceptual provisions for assessment financial risks and justifying the need to neutralize them. Results. The article analyzes the impact of risks on the financial stability of a banking institution. The main methods of bank risk assessment are considered. All these include the statistical method, the analytical method, the expert method, the analogue method and the combined method. The necessity of neutralization of financial risks in order to avoid negative consequences is substantiated. Also the methods of bank risks neutralization are considered. It should be noted that these methods of neutralization can not only be used, but also supplement the list with new methods must be done, which in the future will protect the bank from the influence of undesirable factors. A conceptual approach to the assessment and neutralization of financial risks is proposed. This conceptual approach aims to ensure effective assessment of the level of risk with their subsequent neutralization Conclusions. Use of a conceptual approach will allow an effective risk assessment and decision-making to avoid or accept risk. Thanks to using this approach, the banking institution will be able to react swiftly to the presence of financial risks and to prevent the occurrence of negative consequences, which may lead to a violation of the financial stability of the bank.

Trust and Regulation in Corporate Capital Markets before 1914

2018 ◽  
Author(s):  
Leslie Hannah
Keyword(s):  
Capital Markets ◽  
Stock Exchange ◽  
Legal Regulation ◽  
Securities Market ◽  
Market Development ◽  
Shareholder Rights ◽  
London Stock Exchange ◽  
Local Elites ◽  
Corporate Capital ◽  
Trust Networks

Historians have struggled to explain how stock markets could develop—with notable vigour in many countries before 1914—before modern shareholder protections were legally mandated. Trust networks among local elites—and/or information signalling to public investors—substituted for legal regulation, but this chapter suggests real limits to such processes. They are especially implausible when applied to giant companies with ownership substantially divorced from control, of which there were many with—nationally and internationally—dispersed shareholdings. In London—the largest pre-1914 securities market—strong supplementary supports for market development were provided by mandatory requirements for transparency and anti-director rights in UK statutory companies and by low new issue fees. There were also stringent London Stock Exchange requirements for other companies wanting the liquidity benefits of official listing. Shareholder rights were similarly achieved in Brazil and other countries and colonies dependent on British capital.

scholarly journals Entrepreneurial financing–alternatives for raising capital

2006 ◽  
Vol 9 (2) ◽  
pp. 55-62
Author(s):  
Paul D. Broude ◽  
Joseph E. Levangie
Keyword(s):  
Business Models ◽  
Stock Exchange ◽  
Good Deal ◽  
Associate Editor ◽  
Securities Market ◽  
Dry Powder ◽  
Country House ◽  
Business Plans ◽  
Late Night ◽  
Long Time

Most entrepreneurs are continually concerned about their finances. Their companies perhaps not yet profitable, they may have a fear of “running out of dry powder.” These entrepreneurs often have fallen in love with their company's technologies, products, and potential markets, but they require more resources. Invariably these emerging ventures shroud their fear of the grueling capital raising marathon by presenting voluminous business plans to potential investors. They often flaunt their “optimized business models.”” Investors, however, typically want to know why the potential investment is such a good deal. The entrepreneur often wants guidance regarding what to say to whom in a changing financing environment. In this article, our “Practitioner's Corner” associate editor Joe Levangie collaborates with a long-time colleague Paul Broude to address how businesses should “make their capital-raising initiatives happen.” Levangie, a venture advisor and entrepreneur, first worked with Broude, a business and securities attorney, in 1985 when they went to London to pursue financing for an American startup. They successfully survived all-night drafting sessions, late-night clubbing by the company founder, and even skeet shooting and barbequing at the investment banker's country house to achieve the first “Greenfield” flotation by an American company on the Unlisted Securities Market of the London Stock Exchange. To ascertain how the entrepreneur can determine what financing options exist in today's investing climate, read on.

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