MANAGEMENT OF THE BANK'S INVESTMENT PORTFOLIO

Анотація

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.

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