scholarly journals MANAGEMENT OF THE BANK'S INVESTMENT PORTFOLIO

2021 ◽  
Author(s):  
Yuliia Vladyka ◽  
Victoria Kostiuk ◽  
Valeria Okhrimenko
Keyword(s):  
Banking System ◽  
Optimal Combination ◽  
Information Support ◽  
Management Process ◽  
Investment Management ◽  
Investment Portfolio ◽  
Process Support ◽  
Goals And Objectives ◽  
Centralization And Decentralization

The article considers the investment activity of banks as an alternative to lending, which will help to further restore the banking system. The reasons that motivate banks to carry out investment activities are identified, namely: expansion of income and customer base; high risk of credit operations and the desire to optimize the taxation of bank income. The analysis of efficiency of the formed portfolio of securities in bank, on an example of JSC ProCredit Bank is carried out. As a result of the analysis, it was found that the assessment of the quality of the bank's investment portfolio has certain features related to determining the amount of problem investments, as the bank's balance sheet lacks information on the riskiness of certain securities, and it is proposed to apply fixed risk ratios securities. Despite the impact of COVID-19 on the country's economy, the banking sector gradually continued to stabilize. Banks' investment activities are an alternative to lending, which will help the banking system to recover further. Investments create conditions for expanded reproduction, structural transformations in the country, increasing the competitiveness of domestic products, solving socio-economic problems. Ways to improve the efficiency and quality of investment management of the bank through the optimal combination of centralization and decentralization for investment management; efforts to create new goals and objectives to improve the organization of analytical support of the investment management process; support for constant information support of the investment management process; advanced training of managers related to the management of investment activities. Therefore, the worst quality of the portfolio was in 2019 and 2020, due to the fact that the securities portfolio included only investments in securities for sale. Ways to improve the efficiency and quality of investment management of the bank through the optimal combination of centralization and decentralization for investment management; efforts to create new goals and objectives to improve the organization of analytical support of the investment management process; support of constant information support of investment management process; advanced training of managers related to the management of investment activities.

scholarly journals Investment policy of the banking sector: data from Russia

2021 ◽  
Vol 10 (42) ◽  
pp. 149-162
Author(s):  
Alexei Zverev ◽  
Victoria Mandron ◽  
Tatiana Rebrina ◽  
Maria Mishina ◽  
Yulia Karavaeva
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Investment Policy ◽  
Investment Portfolio ◽  
Investment Activity ◽  
Composition And Structure ◽  
High Volatility ◽  
Investment Portfolios ◽  
Credit Institutions

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.

Human Capital Management Process Based on Information Technology Models and Governance

2012 ◽  
pp. 15-31
Author(s):  
Darko Galinec
Keyword(s):  
Human Capital ◽  
Business Process ◽  
Information Support ◽  
Management Process ◽  
Capital Management ◽  
Human Capital Management ◽  
High Quality Information ◽  
Large Systems

Human capital management (HCM) inside large systems is very complex and demanding, to achieve successful accomplishment high quality information support is necessary. There are many cases where human capital management process is not conducted in a satisfactory way. Key decisions usually come late, very often because of impossibility to consider a problem in its entirety. The cause of it usually lies in weakness and understatement of the human capital management itself and in this connection data management is not given adequate consideration. Data originating from inside and outside sources within information system (IS) are not integrated in a way which will provide an optimal use. In this connection, this paper examines possibilities to innovate the entire human capital management process through the integration of respective data. Data warehousing (DW) possibilities and position within the integral business intelligence (BI) concept are noted as a first step towards its realization. In this paper the necessity to innovate and promote permanently the quality of human capital management process is considered; the main features of the process are given as well. Business process innovation (BPI) as a systematic approach with a view to achieve significant business process change is presented; its connection with data aspect of IS is given too. According to the research of this paper, HCM BPI is achieved by the data integration within existing IS. DW model intended for HCM has been elaborated as a solution which will innovate the process itself. The position and the role of DW within entire BI organization concept have been established as well. Finally, the benefits achieved by the research are explained.

Modeling and Optimization of Socio-Economic Aspects for the Development of Tourism

2019 ◽  
Vol 9 (8) ◽  
pp. 1696
Author(s):  
Gulbaram A. KULAKHMETOVA ◽  
Nadiia A. SHCHERBAKOVA ◽  
Victoria V. TSYPKO
Keyword(s):  
Life Support ◽  
Consumer Preferences ◽  
Optimal Combination ◽  
Information Support ◽  
Object Location ◽  
Economic Aspects ◽  
Life Support System ◽  
Tourist Destination ◽  
Tourist Information

The paper deals with the variants of providing digital nomadism with tourist services and service under conditions of global informatization. In order to increase the mobility of this category of tourists, the authors offered a model of information support in accordance with the strategy of global geoinformation supporting of travel infrastructure. The navigation system of information depository is focused on the localization of life support system points with optimal combination of infrastructure objects. For filling the information depository of tourist destination determination and annotation of most significant objects and access points to global tourist system of informatization have been carried out.  When choosing the above-mentioned objects, the authors proceeded from the following founding principles: accessibility of objects to Internet system sources; consumer preferences; security. To ensure quality of tourist services and service the analysis of the state of global tourist information system infrastructure is carried out in the paper. Following the findings, proposals for the implementation of information depository model are developed. The markers of system orientation in space providing the link of object location with geoinformation field are included in the depositary information field. In general, the offered model, according to authors, will contribute to comfortable and safe movement of digital nomads on tourist route.

LENDING ACTIVITIES OF UKRAINIAN BANKS: PROBLEMS AND PROSPECTS FOR SUSTAINABLE DEVELOPMENT

2021 ◽  
pp. 136-159
Author(s):  
Oksana Vinnytska ◽  
Keyword(s):  
Banking System ◽  
Management Process ◽  
Topical Issue ◽  
Legal Foundations ◽  
Simultaneous Decrease ◽  
Domestic Banks ◽  
Lending Activity ◽  
The Stability ◽  
High Level

An important and topical issue for Ukraine is the issue of improving the organizational, economic and legal foundations of effective lending activities of domestic banks. The ability of the latter to satisfy public needs for loans contributes to the development of the country’s economy. The stability of the banking system largely depends on the level of efficiency of banks’ lending activities. The revitalization of the lending activity of Ukrainian banks in recent years has been accompanied by a simultaneous decrease in its profitability, which is primarily due to the instability of financial markets, imperfect regulatory framework and a high level of competition. Under such conditions, the requirements for the quality of the management process in banks are growing, in particular, there is a need to develop new and improve existing methods for assessing and increasing the efficiency of lending activities.

Human Capital Management Process Based on Information Technology Models and Governance

2010 ◽  
Vol 1 (1) ◽  
pp. 44-60 ◽  
Author(s):  
Darko Galinec
Keyword(s):  
Human Capital ◽  
Business Process ◽  
Information Support ◽  
Management Process ◽  
Capital Management ◽  
Human Capital Management ◽  
Process Change ◽  
High Quality Information

Human capital management (HCM) inside large systems is very complex and demanding, to achieve successful accomplishment high quality information support is necessary. There are many cases where human capital management process is not conducted in a satisfactory way. Key decisions usually come late, very often because of impossibility to consider a problem in its entirety. The cause of it usually lies in weakness and understatement of the human capital management itself and in this connection data management is not given adequate consideration. Data originating from inside and outside sources within information system (IS) are not integrated in a way which will provide an optimal use. In this connection, this article examines possibilities to innovate the entire human capital management process through the integration of respective data. Data warehousing (DW) possibilities and position within the integral business intelligence (BI) concept are noted as a first step towards its realization. In this article the necessity to innovate and promote permanently the quality of human capital management process is considered; the main features of the process are given as well. Business process innovation (BPI) as a systematic approach with a view to achieve significant business process change is presented; its connection with data aspect of IS is given too. According to the research of this article, HCM BPI is achieved by the data integration within existing IS. DW model intended for HCM has been elaborated as a solution which will innovate the process itself. The position and the role of DW within entire BI organization concept have been established as well. Finally, the benefits achieved by the research are explained.

Discretionary Accruals in Italian Private Firms and Non-Linear Bank Loan Granting

2017 ◽  
pp. 83-99
Author(s):  
Elisabetta Mafrolla ◽  
Viola Nobili
Keyword(s):  
Financial Reporting ◽  
Banking System ◽  
Regulatory System ◽  
Discretionary Accruals ◽  
Bank Loans ◽  
Bank Loan ◽  
Banking Union ◽  
Private Firms ◽  
European Banking Union

This paper investigates whether and at what extent private firms reduce the quality of their accruals in order to signal a better portrait to the bank and obtain new or larger bank loans. We measure earnings discretionary accruals of a sample of Italian private firms, testing whether new and larger bank loans are associated with a higher (lower) quality of earnings in borrowers' financial reporting. We study bank loan levels and changes and how they impact discretionary accruals and found that, surprisingly, private firms' discretionary accruals are systematically positively affected by an increase in bank loans, although they are negatively affected by the credit worthiness rating assigned to the borrowers. We find that the monitoring role of the banking system with regard to the adoption of discretionary accruals is effective only when the loan is very large. This paper may have implications for policy-makers as it contributes to the understanding of the shortcomings of the banking regulatory system. This is an extremely relevant issue since the excessive amount of non-performing loans held by Italian banks recently threatened the stability of the European Banking Union as a whole.

Safe water, household income and health challenges in Ugandan homes that harvest rainwater

Water Policy ◽  
2012 ◽  
Vol 14 (6) ◽  
pp. 977-990 ◽  
Author(s):  
David Baguma ◽  
Jamal H. Hashim ◽  
Syed M. Aljunid ◽  
Michael Hauser ◽  
Helmut Jung ◽  
...  
Keyword(s):  
Water Supply ◽  
Health Risks ◽  
Water Shortage ◽  
Information Support ◽  
Household Expenditures ◽  
Safe Water ◽  
Influence Of Water ◽  
Supply Equipment

Having access to a safe water supply is important to improve a person's quality of life. We examine the relationship between the influence of water availability on monthly household expenditures (the dependent variable) and independent variables such as household characteristics, tank size, usage instructions and post-construction guidance, including the management of water-related health risks. The sample consisted of 301 respondents who harvest rainwater in Uganda. A multiple regression analysis was used to analyse the data. The findings show that post-construction guidance and tank size were significant variables. This study suggests the need for a follow-up to improve health after the installation of water supply equipment, i.e., to provide information about water risks, foster reading norms and facilitate the availability and affordability of information sources, e.g., subsidised newspapers and information support devices (computers). Additionally, this study shows the possibility of increased savings due to reduced expenditures on water from vendors and the management of water-related health risks caused by a water shortage, e.g., dehydration. Overall, the study reveals two possible ways to advance policy and health in developing countries: (1) ensuring sufficient post-construction guidance for all water resources; and (2) ensuring a sustainable supply of adequate safe water in households.

Shareholder risk-taking incentives in the presence of contingent capital

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahmoud Fatouh ◽  
Ayowande A. McCunn
Keyword(s):  
Risk Taking ◽  
Banking System ◽  
Capital Requirements ◽  
Content Type ◽  
Basic Model ◽  
Conversion Rates ◽  
A Minor ◽  
The Impact ◽  
Practical Implications

Purpose This paper aims to present a model of shareholders’ willingness to exert effort to reduce the likelihood of bank distress and the implications of the presence of contingent convertible (CoCo) bonds in the liabilities structure of a bank. Design/methodology/approach This study presents a basic model about the moral hazard surrounding shareholders willingness to exert effort that increases the likelihood of a bank’s success. This study uses a one-shot game and so do not capture the effects of repeated interactions. Findings Consistent with the existing literature, this study shows that the direction of the wealth transfer at the conversion of CoCo bonds determines their impact on shareholder risk-taking incentives. This study also finds that “anytime” CoCos (CoCo bonds trigger-able anytime at the discretion of managers) have a minor advantage over regular CoCo bonds, and that quality of capital requirements can reduce the risk-taking incentives of shareholders. Practical implications This study argues that shareholders can also use manager-specific CoCo bonds to reduce the riskiness of the bank activities. The issuance of such bonds can increase the resilience of individual banks and the whole banking system. Regulators can use restrictions on conversion rates and/or requirements on the quality of capital to address the impact of CoCo bonds issuance on risk-taking incentives. Originality/value To model the risk-taking incentives, authors generally modify the asset processes to introduce components that reflect asymmetric information between CoCo holders and shareholders and/or managers. This paper follows a simpler method similar to that of Holmström and Tirole (1998).

Trends and problems of retail Bank lending in modern conditions on the example of «Sberbank of Russia»

2020 ◽  
pp. 156-165
Author(s):  
В.В. Мандрон ◽  
А.Ю. Ефименко ◽  
Д.Г. Свиридов
Keyword(s):  
National Economy ◽  
Positive Impact ◽  
Banking System ◽  
Bank Lending ◽  
Real Income ◽  
Real Estate Market ◽  
The State ◽  
Loan Portfolio ◽  
Effective Development

Эффективное развитие механизмов кредитования физических лиц оказывает положительное влияние не только на рынок недвижимости, автомобильную промышленность, потребительский рынок, но и на темпы развития банковской системы, что значительно влияет на рост национальной экономики и улучшает качество жизни населения РФ. Исследование посвящено ключевым тенденциям и проблемам функционирования рынка розничного кредитования в современных условиях. Определены главные проблемы, которые оказывают существенное влияние на организацию рынка розничного кредитования, его объемы и качество. Проведен анализ данных отражающих состояние рынка розничного кредитования на современном этапе. На состояние данного сегмента кредитного рынка оказывает влияние как общее экономическое состояние государства, курс денежно-кредитной политики Банка России, уровень реальных доходов населения, а также форс-мажорные ситуации. В статье дается оценка объема, состава и структуры кредитного портфеля одного из крупнейших финансово-кредитных институтов страны – ПАО «Сбербанк России». Особое внимание уделено кредитованию физических лиц в разрезе отдельных форм и видов кредитных инструментов, отражается связь состояния национальной экономики и качества кредитного портфеля банка. Effective development of mechanisms for lending to individuals has a positive impact not only on the real estate market, automotive industry, consumer market, but the pace of development of the banking system, which greatly affects the growth of the national economy and improves the quality of life of the Russian population. The research is devoted to the key trends and problems of functioning of the retail lending market in modern conditions. The main problems that have a significant impact on the organization of the retail lending market, its volume and quality are identified. The analysis of data reflecting the state of the retail lending market at the present stage is carried out. The state of this segment of the credit market is influenced by the General economic state of the state, the rate of monetary policy of the Bank of Russia, the level of real income of the population, as well as force majeure situations. The article provides an assessment of the volume, composition and structure of the loan portfolio of one of the largest financial and credit institutions in the country-PJSC Sberbank of Russia. Special attention is paid to lending to individuals in the context of individual forms and types of credit instruments, reflecting the relationship between the state of the national economy and the quality of the Bank's loan portfolio.

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