Hello student. The structure of the investment potential of the Russian banking system and the features of its formation Credit investment potential

Credit and investment operations of banks are among the main types of active operations that ensure the formation of the largest amount of income. At the same time, credit and investment operations of banks are associated with a large number of different risks, which can lead not only to the loss of profit, but also the principal amount of credit and investment resources and partially reduce the volume of equity capital.

The economic foundation of a modern bank is based on the resource component. Without the formation of such a resource component, it is impossible to ensure the formation of the credit and investment potential of a banking institution.

The economic resources of the bank are not only financial resources (own, attracted and borrowed capital), but also other types of resources that the bank needs to carry out active operations, in particular credit and investment.

The economic components of the bank that ensure the formation and use of its credit and investment potential include the following types of potentials:

— financial potential of the bank (equity capital and liabilities);

— human resources potential;

— technical and information potential;

— settlement and payment potential;

— organizational and managerial potential.

These potentials must be formed to a minimum extent in order to ensure the initial level of credit and investment activity. But recently, banking institutions have been trying to computerize their services, make them more accessible and mobile. The result of these trends was the Privat 24 service, which allows bank clients to access their account at any time of the day.

The main economic component of the formation and use of credit and investment potential is financial potential, in particular the bank’s own capital and liabilities. Taken together, the bank’s equity capital and liabilities constitute the financial basis for carrying out any active operations, including credit and investment.

The relationship between equity capital and the credit and investment potential of banks lies in the fact that equity capital acts as the financial basis of economic activity, including the provision of banking services.

The bank's own capital provides real conditions for the creation and further expansion of the resource base by increasing the volume of deposits of individuals and legal entities, as well as issuing securities and their placement on the domestic and especially the foreign stock market.

The gradual growth of equity capital significantly increases the credit and investment capabilities of the bank and allows for larger-scale credit and investment operations.

The main elements of the bank's own capital are the authorized capital, reserve capital and other funds, general and special reserves to cover risks, and retained earnings. According to statistics from the Association of Ukrainian Banks (AUB), the equity and authorized capital of Ukrainian banks has increased significantly in recent years.

However, the available volumes of these capitals do not meet the needs of both the banks themselves and the entire economy of the country, which negatively affects the ability of domestic banks to provide lending to individuals and legal entities and invest in large-scale structural innovation and investment projects.

From the above, we can conclude that the greater the volume of the bank’s liabilities, especially in the form of attracted and borrowed funds, the more the bank has the opportunity, through certain areas, to increase the volume of formation of credit and investment potential. With a decrease in the volume of liabilities, especially deposits of individuals and legal entities, bond issues, and interbank loans, the volume of credit and investment potential actually decreases.

However, it must be taken into account that an uncontrolled increase in the bank’s liabilities can lead to the following events:

— volumes of credit and investment resources may significantly exceed the bank’s ability to effectively allocate them when carrying out active operations;

— an increase in the volume of obligations increases the risk of the bank’s inability to fulfill these obligations to creditors;

— an unreasonable increase in obligations leads to a loss of trust on the part of clients.

The student must know: the concept of credit and investment potential of the banking sector and the main factors that have a significant impact on its development; the importance of the capital of the banking sector, the savings potential of the population, attracted funds from enterprises and households, foreign capital, refinancing instruments in the formation of credit and investment potential; directions for analyzing the influence of these elements on the credit and investment potential of the banking sector.

Key words and terms: credit and investment potential of the banking sector, capitalization of the banking system, savings potential of the population, globalization, foreign banks, transnational banks, banks with foreign participation, refinancing, key rate.

Credit and investment potential of the banking sector: concept and factors

The credit and investment potential of the banking sector should be understood as the ability of the banking sector to redistribute financial flows and perform an intermediary function in the movement of capital both at the international level and between various sectors of the national economy. Due to the credit and investment potential, consumer demand is stimulated and the real sector of the economy develops.

Raising resources to finance investments can be carried out both through the banking system using credit mechanisms and in the capital markets.

The main ways and factors for increasing the credit and investment potential of the Russian banking sector:

• increase in equity capital - capitalization of the banking system from the following sources: profit, issue funds, revaluation of fixed assets;
• accumulation of savings of the population;
• attracting foreign investment in the banking sector;
• development of refinancing instruments of the Bank of Russia;
• development of the general economic situation.

The first factor influencing the credit and investment potential of the banking sector is the increase in equity capital and capitalization of the banking sector. The role of the source “bank profits” in increasing equity capital is currently small, since the average profitability of the banking business has been declining in recent years due to the financial crisis, rising interest rates and lack of liquidity. There is also concern about the risk of lower profit levels in the face of rapidly increasing amounts of overdue debt.

Emission resources include funds of founders, shareholders and third parties. The most effective tools for increasing equity capital are an IPO (the company's first public offering of shares, also called an issue) or the direct sale of a portion of the shares to a strategic investor.

The main limitation that determines whether a bank can conduct public offerings of shares is a sufficiently high credit rating. If the bank’s reliability level assumes more than 20% probability of default, then it cannot use the attraction of investors, especially foreign ones, to increase its own capital.

An important difference between the stock market and the debt instruments market is the possibility of obtaining guaranteed profits exclusively over long investment time horizons. The financial stability of the issuer in the long term is an important condition to attract the interest of investors. Thus, due to the emission source, it is possible to obtain a significant increase in the total equity capital of the banking sector, but the concentration of this increase will be obvious.

Banks are reluctant to use such a source of increasing capitalization as the revaluation of fixed assets, due to the proportional increase in the tax base for property tax. Moreover, this source does not provide a direct increase in the volume of credit and investment resources.

The accumulation of household savings is another factor influencing the credit and investment potential of the banking sector. Savings of the population enter the real sector with the participation of the banking, pension and insurance systems. The ability of commercial banks to attract savings from the population is a necessary condition for financial intermediation.

The dynamics of deposits of individuals in nominal or real terms characterizes the level of public confidence in the banking sector and the degree to which this sector performs intermediary functions in mobilizing the population’s monetary savings.

Macroeconomic stability and information and political shocks determine the degree of confidence in the banking sector. Information and political shocks are possible information attacks and emergency political events that go beyond the normal situation.

Political shocks include possible but not highly probable events. Such events include:

• inertial policy pursued by the monetary authorities;
• arrests of foreign assets of systemically important Russian banks or companies affiliated with them;
• foreign investigations or lawsuits relating to the activities of a large number of Russian banks;
• due to massive violations of legislative and regulatory requirements, the revision (or the possibility of revision) of banking licenses of a large number of banks;
• significant claims by tax and law enforcement authorities against a significant number of commercial banks or organizations associated with them;
• the adoption by such regulatory international organizations as FATF, BIS, the Basel Committee of decisions that significantly complicate the activities of Russian commercial banks and significantly reduce their competitive positions.

The share of demand deposits and time deposits in the total volume of deposits of individuals is an important indicator characterizing the state of the banking sector. This indicator demonstrates the degree of confidence in the banking sector; it is time deposits that form the resource base for the development of long-term lending and are the main resource for financial intermediaries.

Foreign investment in the banking system is another factor influencing the credit and investment potential of the banking sector. Foreign investment in the banking system refers to the share of foreign banks in the registered authorized capital and assets of the entire banking system. Since foreign banks often have access to cheaper and more accessible capital through their parent companies, the presence of foreign investment in the banking system has a positive effect on the growth of credit and investment potential.

It is possible to assess the influence of foreign banks on changes in the credit and investment potential of the banking sector in two ways:

• assess the dynamics of growth of foreign investment in the authorized capital of commercial banks;
• analyze the resource base of a foreign bank.

The process of integration of the Russian banking sector into the global financial system has both advantages and disadvantages. The advantage is that the banking sector, by expanding sources of liabilities, becomes more resistant to shocks in the national economy. However, in the event of global financial turmoil, the greater the dependence of the national economy on international capital flows, the greater the negative impact on it.

Factors characterizing the degree of integration of the national banking sector into the world economy:

• the share of foreign banks in assets or in the authorized capital of the banking system;
• share of external debt of the non-financial sector of Russia;
• the share of external debt of the banking system in the overall structure of liabilities of the banking system.

The factor “share of external debt of the non-financial sector” is of great importance for the economic development of Russia. On the one hand, there is a chain at work: narrowing access to European markets - reducing the volume of investment in the real sector of the economy - slowing down the dynamics of the GDP per capita factor. On the other hand, the higher the share of external debt of the non-financial sector, the higher the dependence of the Russian economy on external factors.

The development of refinancing instruments of the Central Bank of the Russian Federation also has an impact on the credit and investment potential of the banking sector. Increasing the efficiency of commercial banks' refinancing instruments, as well as their development, is an important factor in the context of liquidity crises. The efficiency of refinancing refers to the targeted use of financial resources and the uniform distribution of funds within the banking system.

The targeted use of financial resources includes: replenishing the economy with long-term credit resources, investing in strategic economic objects, reducing the share of funds allocated to foreign assets.

And the last factor influencing the credit and investment potential of the banking sector is an increase in the influx of funds due to the general economic situation. This effect can be achieved due to the following components:

• reduction of “bad” debts, which cause losses of credit and investment resources;
• an increase in the profits of economic entities, leading to an increase in balances in bank accounts
• reducing capital outflow;
• regulation of inflation.

A detailed analysis of the influence of a number of the most significant factors on the credit and investment potential of the banking sector is provided in the following paragraphs of Chapter 4.

FINANCE OF THE STATE AND ENTITIES

UDC 336.71 DOI: 10.18413/2409-1634-2016-2-4-53-61

Kostrovets L. B. Kirizleeva A. S.

CREDIT AND INVESTMENT POTENTIAL OF BANKS. REGIONAL ASPECT

rektor@dsum. org

State Educational Institution of Higher Professional Education "Donetsk State University of Management", st. Chelyuskintsev, 163a, Donetsk, 283015

akirizleeva@mail. ru

annotation

To create and maintain banking institutions in a stable condition, it is necessary to effectively manage all cash flows, which is reflected through the management of financial instruments reflected in assets, liabilities, off-balance sheet claims and liabilities. Financial instruments that extend into the present, past and future, including off-balance sheet claims and obligations, are received or paid by banking institutions in the future, which directly affects the results of operations and financial condition. The article reveals the features of effective banking activities; indicators influencing its effectiveness are studied; an analysis of the functioning of commercial banks is carried out according to their main quantitative and qualitative indicators; the connection between regional characteristics and credit and investment activities of banks, their impact on the effective functioning of banks in various regions is considered; An analysis of the location of commercial banks on the territory of Ukraine is carried out. Key words: banking system; efficiency of banking activities; profit; asset and liability management; banking investments; regional features; credit and investment activities; region

Larisa B. Kostrovets Alisa S. Kirizleeva

CREDIT-INVESTMENT POTENTIAL OF BANKS. REGIONAL ASPECT

State Educational Institution of Higher Professional Education "Donetsk State University of Management"

163a Chelyuskintsev St., Donetsk, 283015, [email protected] State Educational Institution of Higher Professional Education "Donetsk State University of Management" 163a Chelyuskintsev St., Donetsk, 283015, [email protected]

To create and maintain the banking institutions in a stable condition all cash flows must be managed efficiently, which is reflected through the management of financial instruments, which are recognized in the assets, liabilities, off-balance sheet claims and liabilities. Financial instruments, which are applicable in the present, past and future, including off-balance sheet assets and liabilities, banking institutions receive or pay in the future, that directly affects the results of operations and financial condition.

The article examines the peculiarities of efficient banking operation, as well as the indicators influencing its efficiency. It also analyzes the functioning of commercial banks of Ukraine by their main quantitative and qualitative indicators; examines the connection of regional peculiarities and crediting and investment activity of the banks of Ukraine, their influence on efficient functioning of banks in different regions. The article also analyzes the location of commercial banks on the territory of Ukraine.

Keywords: banking system; efficiency of banking operation; profit; assets and liabilities management; banking investments; regional peculiarities; crediting and investment activity; region

Statement of the problem in general terms. In all countries, regardless of the economic system and the method of organizing public relations, the banking system plays a major role. It is not for nothing that the banking system is often compared to the circulatory system of the state economy. After all, it is precisely this that provides the economy with the required amount of financial resources, supplying the free movement of capital, settlements of economic entities, lending to the economy, as well as the performance of a number of other functions and tasks. It is difficult to imagine a developed state economy without a developed banking system.

In the conditions of today's rapid development, the banking system of Ukraine is one of the most developed elements of the economic mechanism, since its reform began earlier than other sectors of the economy, which was determined by the key role of banks in solving the problems of transition to a market economy. It is banking institutions that play the main role in creating an optimal environment for the concentration and free movement of capital, piling up funds for structural restructuring of the economy, privatization and development of entrepreneurship.

Each region of Ukraine is distinguished by economic, natural, social, transport, geographical

features that are important in the organization of banks, their branches and branches, and the implementation of credit and investment

activities in general.

Studying regional features of the formation and use of credit and investment potential is important not only for banks, but also for the entire banking system. This is due to the fact that the regional component of the development of each bank is the most important. Taking this into account, banks can increase the volume of their activities and increase profits.

Analysis of the latest research and publications. It is important to understand what the banking system as a whole is and its effectiveness, which scientists have paid considerable attention to. Lavrushin O.I. describes the banking system as follows: “The banking system, first of all, is not a random variety, a random

a set of elements. ... It expresses properties that are characteristic of itself, in contrast to other systems functioning in the national economy. The specifics of the banking system are determined by its constituent elements and

relations that develop between them."

Lavrushina O.I. in the textbook notes: “The banking system is a necessary set of banks, non-banking institutions and banking infrastructure that are in close interaction with each other and ensure its sustainable development.”

“When analyzing the efficiency of the banking system, the impact of specific features of the state on the activities of banks is usually taken into account: the structure of the economy, the nature of the activities carried out

macroeconomic policy, the specifics of structural and institutional reforms in the financial sector, other features,” points out Novikova A.I. .

Baburina N.O., points out that: “the credit and investment potential of a bank is the bank’s ability to carry out credit and investment activities due to the availability of appropriate resources: financial, labor, technical, technological and the like.”

It is necessary to take into account regional characteristics when developing a strategy for credit and investment activities of the entire bank, individual divisions, as well as when implementing credit and investment policy in a particular region.

Problems of credit and investment

The activities of Ukrainian banks from a regional perspective have been studied by many scientists.

Yu.M. Vorobiev carried out a detailed analysis of the features of regional credit activities. and Sribna K.A. They identified the main problems that complicate the provision of loans to entities

entrepreneurship

The purpose of the article is to identify the features of effective banking activities; carrying out analysis

functioning of commercial banks of Ukraine according to their main quantitative and qualitative indicators. Significant are the studies of regional characteristics of credit

investment activity, influence

regional factors on the location of banks and the implementation of their activities and functions. The relevance of this issue arises in the context of a financial crisis, which negatively affects banks, borrowers, and investors.

Presentation of the main material. Justification of the obtained results. When analyzing bank efficiency, the influence of

specific features of the country on the work of banks. These include, for example, the structure of the economy, the nature of the macroeconomic policy being pursued, the specifics of structural and institutional reforms in the financial sector, and other features.

affecting the level of efficiency of banks are the ownership structure in the banking system, major changes in operating activities, the bank’s share in the deposit market, capitalization of banks, etc.

In addition to the above approach, calculations are used that interconnect efficiency with indicators of the structure of banking assets and liabilities and certain types of operations.

Profit is the performance of income and expenses

the main indicator of the bank. Difference between commercial bank

constitutes its financial profit. It is the indicator of financial profit (i.e., excluding taxes and distribution of residual profit) that characterizes the efficiency of a commercial bank.

All types of analysis are based on indicators that include profit, bank assets, financial results, as well as the number of registered banks in the analyzed period and other indicators.

Data from the National Bank of Ukraine show that in 2014 there were 163 banks operating in the country, including 51 banks with foreign capital (19 with 100% foreign capital). The main performance indicators of the banking system are presented in the table. According to NBU data, the share of foreign capital in the equity capital of the banking system increased slightly over the year and amounts to 32.5%.

Main performance indicators of Ukrainian banks

Main indicators of Ukrainian banks

Year Number of registered banks Assets of banks, million UAH. Loans issued, UAH million. Own capital, UAH million. Liabilities, million UAH. Regulatory capital, UAH million. Net financial result, UAH million.

2007 175 599 396 485 368 69 578 529 818 72 265 6 620

2008 184 926 086 792 244 119 263 806 823 123 066 7 304

2009 182 880 302 747 348 115 175 765 127 135 802 -38 450

2010 176 942 088 755 030 137 725 804 363 160 897 -13 027

2011 176 1 054 280 825 320 155 487 898 793 178 454 -7 708

2012 176 1 127 192 815 327 169 320 957 872 178 909 4 899

2013 180 1 278 095 911 402 192 599 1 085 496 204 976 1 436

2014 163 1 316 852 1 006 358 148 023 1 168 829 188 949 -52 966

The main indicators of the development of both the country’s economy as a whole and the second-tier banking system are both the value of the country’s gross domestic product and, accordingly, the balance sheet currency of commercial

banks. Let us analyze the dynamics of the GDP and assets of Ukrainian banks over ten years (Fig. 1. Dynamics of development of GDP indicators, assets and net income of Ukrainian banks).

Rice. 1. Dynamics of development of GDP indicators, assets and net income of Ukrainian banks 1. Dynamics of GDP, assets and net income of Ukrainian banks

Over ten years, the country's gross domestic product amounted to UAH 1,566,728 million. in 2014, which is 3.55 times more than in 2005. But due to the economic crisis, the level of this macroeconomic indicator decreased in 2009 by UAH 34,711.00 million. compared to 2008. Considering the dynamics of development of commercial banks, it can be noted that active operations of Ukrainian banks increased by UAH 1,101,843.07 million. or 6.16 times, which is more than twice the growth of the country's GDP. Similar to the downward trend in the country's GDP in 2009, there was a decrease in the balance sheet currency of banks by UAH 45,160.72 million. or 1.06 times.

Despite a significant increase in the assets of commercial banks, over ten years of operation of the banking system, four out of ten years commercial banks, the purpose of which is to obtain maximum profit, showed a negative financial result in their financial statements - a loss (2009 - -38,449.81 million . UAH, 2010 - -13,026.59 million UAH, 2011 - -7,707.54 million UAH, 2014 - -52,966.51 million UAH). The most significant consolidated loss of banks was observed in 2014. It is necessary to note the negative trend in the state of the banking system of Ukraine: over ten years, if we calculate the total contribution of commercial banks to the country's economy - the total financial result for ten years, then the banks had a loss of 85,485.84 million UAH. The most

The country's large financial institutions not only do not bring significant revenues to the budget revenues, but also create risks of violating the stability of the credit system of the entire country and the loss of assets of bank clients.

Using different methods of liquidity management, a banking organization seeks to find a rational ratio of assets and liabilities, which could ensure an appropriate level of profitability and not jeopardize the bank’s ability to meet its obligations.

Asset and liability management is carried out using different methods, and all three are still used in today's practice.

Until the 60s of the last century, bank boards primarily used management only of active operations. The method is based on who should be given credit resources first and under what conditions. This approach could not bring maximum profit, since, on the one hand, the bank refuses to manage the funds raised and, therefore, influence their value, and on the other, a significant part of bank assets must be in highly liquid form to maintain a sufficient level of liquidity which ultimately leads to a decrease in income.

In the 1960s and 70s, the banking industry eventually came to the conclusion that liability management was also possible. Advantage

is to increase profitability and to be able to more accurately predict the need for liquid funds. In order for the bank to have the necessary volume, structure and level of expenses for passive operations, they resorted to price and non-price methods of managing raised funds.

The big disadvantage of this method is that funds are raised without taking into account the effectiveness of various areas for their placement.

The new approach to asset-liability management is that both income and expenses make up the bank's balance sheet, and therefore, by reducing the level of costs (liability management approach), the desired level of profitability is achieved to the same extent as during receipts from active operations.

Thus, the efficiency of commercial banks depends on many factors, both external and internal: political, economic, social

the situation in the country, as well as quantitative indicators of banking activities,

rationality in managing existing funds.

The primary task, which must be solved primarily at the macro level, is to make decisions to stabilize the country’s economy, create conditions to strengthen the reliability of commercial banks in order to prevent legal entities and individuals from losing their assets, savings, and their well-being.

Each region has its own unique features that affect the credit and investment activities of banks. These features can be structured and grouped into separate groups.

Let us justify each group and type of regional features that influence the credit and investment potential of the Ukrainian banking system.

Political features.

Political stability in the region_

Characterized by stable political relations between various political groups, parties, etc. Political stability affects economic relations, promotes economic development, incl. banking sector, in particular credit and investment activities.

Level of interaction between regional authorities and state authorities

Effective interaction between regional authorities and state authorities makes it possible to have constant support from the central government. This makes it possible to ensure economic growth in the region, including through the formation and use of credit and investment

banks' potential

Level of interaction between regional authorities and entrepreneurs

With effective interaction between regional authorities and entrepreneurs, additional

opportunities for economic growth, which cannot be achieved without active credit and investment activities of banks. Regional authorities have always tried to have good relations with

banks to ensure financial prospects for the development of the region

Level of interaction between regional authorities and the population

The interaction of regional authorities with the population makes it possible to ensure the stability of socio-economic development. The population of the region is voters, and, therefore, the regional government is trying to have positive relations with the population, which also has a good effect on the credit and investment opportunities of banks in

Rice. 2. Political features affecting the credit and investment activities of regional banks of Ukraine 2. Political considerations that affect the credit and investment activities of the regional banks in Ukraine

Organizational and managerial features.

1. Confidence of individual investors and borrowers. Positively or negatively affects the terms and volumes of deposits, credit loans of the population and legal entities.

2. Location of banking institutions in the region. The greatest concentration of banks is in large and medium-sized cities, where the formation of financial flows, income and expenses of business entities and the population occurs.

3. The presence of different groups of enterprises. Banks are created mainly where large and medium-sized, as well as small enterprises, which are the main consumers of resources, are located.

4. Professional abilities of banking personnel. The success of the formation and use of credit and investment potential depends on the effective activities of credit managers and their professionalism.

Social features.

In regions with a large number of unemployed, problems arise with the formation of credit and investment resources, the number of borrowers decreases, and the population uses bank services less. With sufficient demand for labor resources, the population has more opportunities to increase their own incomes, savings and use of bank loans.

Propensity of the population to use borrowed funds

Affects the ability of the population

act as individual investors, in particular, invest available funds on deposits in banking institutions in the region. Income

population significantly affect their ability to be borrowers from banks in the regions.

The population of richer regions has a greater propensity to use borrowed funds than the population of depressed regions. Although there are some specific differences in this issue related to the employment of the population.

Level of social conflicts

Level of solvency of the population in the region

Social conflicts reduce the stability of the region and negatively affect the economic relations of various

subjects, in particular the population and business structures. Often social conflicts are associated with uneven distribution of resources, income, and failure to comply with the requirements of the country’s labor and civil legislation.

The higher the level of solvency of the population in the region, the greater the opportunity for economic growth, and, consequently, the conditions for increasing the credit and investment potential of banks. The solvency of the population stimulates demand for goods and services, which supports supply. This

stimulates production, which cannot exist without the use of credit resources. With sufficient

solvency of the population in the region, conditions are created for the growth of savings, which is also an important stage in the formation and use of the credit and investment potential of banking institutions

Level of social guarantees and social protection in the region

The high level of social guarantees and social protection in the region significantly reduces labor migration of the population and promotes more active use of credit resources by the population. Fulfilling obligations to comply with social guarantees and ensuring social protection of the population strengthens the credit and investment potential of banks and contributes to the effective formation and use of credit and investment resources.

Rice. 3. Social features affecting the credit and investment potential of commercial banks

in the regions of Ukraine

Fig. 3. Social features that affect the credit-investment potential of the commercial banks in the regions of Ukraine

Demographic features: population density in the region, the number and proportion of the working population, gender and age factors, the proportion of local and rural population, level of education,

qualifications and professional characteristics, the level of population growth (decrease), the level of mechanical migration of the population.

Financial and economic features.

Resource base of banks in the region

Financial and economic features

Types of economic activities that prevail in the region

The resource base of banks in the region depends on the presence of the population and legal entities, the level of income of the population and business entities, the state of development of the stock market, and interest on deposits. The resource base of banks in the region significantly influences the formation of credit and investment potential.

Enterprise profitability level

An increase in the level of profitability of enterprises makes it possible, on the one hand, to more reliably provide conditions for repaying loans and formulate their own investment strategy, on the other hand, an increase in profitability encourages enterprises to use only their own funds, reducing the volume of borrowed financial resources.

Availability of real collateral for economic entities to obtain loans

Therefore, it is necessary

a more optimal balance between the types of economic activities that require credit and investment resources, and those types that are suppliers of financial resources for the banks themselves.

Volumes and structure of financial flows in the region

A significant part of the population does not have or does not want to use existing property as collateral. Legal entities that rent

fixed assets, practically do not have their own property, and therefore they have problems

problems with collateral, which affects the reality of obtaining bank loans. The absence of collateral or illiquid collateral does not make it possible to stimulate the lending and investment activities of banks.

The volumes and structure of financial flows affect credit

investment activity through the formation and use of the resource base of banks.

The cost of bank loans in the regional credit market.

Cost of loans in the regional credit market

depends on interbank competition, the general credit policy of banks, and the cost of financial resources that banks attract in the regions. The cost of loans significantly affects interest

clients in the use of credit resources. Therefore, there is every reason for banks in the regions to adhere to more realistic interest rates, which are related to the level of income in the region.

Investment climate in the region

Favorable investment

the climate stimulates an increase in the number of investors and real borrowers. The increase in the number of investors stimulates competition between banking and non-banking institutions regarding credit and investment activities, which provides conditions for increasing the value of the credit and investment potential of banks.

Level of competition between banks for the resource base and borrowers

In the pre-crisis period, a big struggle for clients had already begun between banks in the regions, that is,

individuals and legal entities. The financial and economic crisis has somewhat changed the direction and pace of this struggle. But competition between banks at the regional level will intensify, which will negatively affect those banks that have a small network and ineffective bank employees.

Rice. 4. Financial and economic factors influencing the credit and investment activities of banks in the regions of Ukraine 4. Financial and economic factors affect the credit and investment activities of banks in the regions of Ukraine

Natural geographical features.

1. Natural and geographical risks affecting the credit and investment potential of banks: risks of flooding of populated areas; earthquake risks; risks of flooding; risks of frost, drought, rain; risks of other disasters.

2. The presence of natural and geographical restrictions regarding the implementation of certain types of economic activities. For example, the impossibility of mining coal, growing flax, and logging in the Autonomous Republic of Crimea.

3. Absence (presence) of natural resources affecting the livelihoods of the population and the production activities of enterprises. Thus, metallurgy develops where there are places where ore and coal are mined; mechanical engineering gravitates towards metallurgy enterprises.

Legal features.

1. Level of implementation of legislation in the region. Compliance with laws contributes to a favorable investment climate,

increasing the number of enterprises.

2. Level of criminalization in the region. The increase in criminal cases in the region reduces the likelihood of banks carrying out lending and investment activities in this particular territory, since there are threats for both banks and borrowers.

3. Level of shadow economy. Almost all regions are involved in the shadow economy to some extent. The growth of the shadow sector and the participation of banks in it is inevitable, which negatively affects trust in banks.

4. Level of corruption in the region. The growth of corruption slows down the development of entrepreneurship and reduces the population's trust in the leadership of the region.

All of these features significantly affect the credit and investment potential. The greatest influence is exerted by political, financial, economic and organizational and managerial features.

Thus, in order to implement effective credit and investment

activities must take into account the characteristics of the regions, which directly affect the functioning of banking institutions.

Before the crisis, consumer lending to the population prevailed in the regions of Ukraine, mostly mortgage lending for the purchase of cars and housing by individuals.

At the same time, banks began to lend less to Ukrainian car manufacturers and construction companies. This is one of the main reasons for the lending and investment activities of Ukrainian banks. Therefore, the state must take appropriate measures to support its own producers when lending to individuals. That is, provide preferential loans only when the loan funds are spent on the purchase of national goods

manufacturers.

Each territory has its own specific characteristics, which causes differences in the credit and investment potential of each region.

Considering the geographical location of banking organizations, you can see that most of them are located in Kyiv and some large cities.

Kyiv ranks first in terms of the number of banks located. Why do many banks open in the capital? There are several reasons: all government agencies are located in Kyiv, which play a huge role in ensuring economic activity; Since the beginning of the formation of an independent country, Kyiv has mobilized the main financial flows, which is very important for banks; the capital of Ukraine has gathered the majority of the main offices of the largest domestic and foreign companies; in Kyiv there is a great opportunity to influence all regions; The population in the capital differs from the population of other regions in the highest level of personal finance.

The second place in the number of banks is occupied by the city of Dnepropetrovsk. This region has 15 banks, of which the largest is PJSC Privatbank. During the financial crisis, only one bank was liquidated. The reason for the establishment of banks in this city is that it is a large industrial center that needs large financial resources.

In third place is the city of Kharkov, where 11 banks are located. Among them is one powerful bank. Explain the presence of a large number

banking institutions can be done by the same factors as in Dnepropetrovsk. The region needs its own banking institutions due to the presence of large enterprises and economic ties with Russia.

The fourth place in the ranking of regions belongs to Donetsk. 10 banks have been created in the city, 2 of which belong to the largest group. Donetsk is a large city, characterized by developed industry and economic ties with other countries, in particular with Russia. During the financial crisis, not a single bank was liquidated.

In fifth place is Odessa - 9 banks. Odessa does not have large banks, despite the fact that it is a large industrial and transport center. There are several seaports around the city, providing transport links with many countries of the world.

Lviv ranks sixth in the number of banks. There are 5 banks founded in the city, including one large and one that went through liquidation during the financial crisis. The city has no industrial significance, despite the fact that there are significant industrial enterprises here.

Bibliography

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http://www.bank.gov.ua/control/uk/publish/article?art_id=368 07&cat_id=36798 (date of access: 05/17/2015).

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1. Baburin, N. A. Credit and investment potential of the bank: the concept and elements / N. A. Baburin // Bulletin of Tyumen State University. 2006. No. 3. pp. 208-210.

2. Veshkin, G., Avagyan, G. L. Economic analysis of commercial bank activity: Textbook. Guide. M. Masters, 2007.

3. Vorobyov, Yu. Kredituvannya sub"ektiv pidpriemnitstva in ekonomitsi regionu: monograph / Y. M. Vorobyov, K. A. Sribna. Simferopol: Vidavnitstvo “Share”, 2008. 224 p.

4. Glushko, V. I. Financial management at the bank: Navch. posib. Singapore: VD "Word", 2004. 296 p.

5. Kochetov, V. M. Financial sustainability of modern commercial Bank: theoretical and methodical aspects: monograph: the monograph / V. M. Kochetov. K.: KNEU, 2002. 238 p.

6. Lavrushin, O. I. Money, credit, banks. - 1st ed. -1998.

7. Lavrushina, O. I. The banking system in the modern economy: the manual / group of authors; ed. prof...2nd ed. M.: KNORUS, 2012. 360 p.

8. Novikov, A. I. Practical Approaches to reform the banking system in the Russian Federation // Young scientist. 2013. No. 7.P. 225-228.

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Kostrovets Larisa Borisovna, rector, doctor of economics. Sc., Associate Professor

Kirizleeva Alisa Salavatovna, Associate Professor of the Department of Financial Services and Banking, Ph.D. Sc., Associate Professor

Larisa B. Kostrovets, Rector, Doctor of Economic Sciences, Associate Professor

Alisa S. Kirizleeva, PhD in Economics, Associate Professor, Department of Financial Service and Banking

Short description

Overcoming the consequences of the economic crisis and entering a new trajectory of stable economic growth directly depends on strengthening the role of the Russian banking sector in ensuring economic development, available investment opportunities, and the efficiency of attracting financial resources, i.e. generated credit and investment potential and the effectiveness of its use in real sectors of the economy.

INTRODUCTION
І METHOLOGICAL BASIS FOR FORMATION AND USE OF CREDIT AND INVESTMENT POTENTIAL OF THE RUSSIAN BANKING SYSTEM
1.1 Theoretical foundations of credit and investment activities of Russian banks
1.2 Principles of formation and use of credit and investment potential of the Russian banking sector
II. FACTOR ANALYSIS OF FORMATION AND USE OF CREDIT AND INVESTMENT POTENTIAL OF THE BANKING SYSTEM
2.1 Assessment of supply and demand for credit and investment resources of commercial banks in Russia
2.2 Analysis of the effectiveness of credit and investment activities of the banking sector
III. OPTIMIZATION OF OPERATING PARAMETERS OF THE RUSSIAN BANKING SYSTEM
3.1 Prospects for increasing the efficiency of credit and investment activities of commercial banks of the Russian Federation
CONCLUSION
BIBLIOGRAPHY

Attached files: 1 file

Credit and investment potential of the Russian banking sector

INTRODUCTION

І METHOLOGICAL BASIS FOR FORMATION AND USE OF CREDIT AND INVESTMENT POTENTIAL OF THE RUSSIAN BANKING SYSTEM

1.1 Theoretical foundations of credit and investment activities of Russian banks

1.2 Principles of formation and use of credit and investment potential of the Russian banking sector

II. FACTOR ANALYSIS OF FORMATION AND USE OF CREDIT AND INVESTMENT POTENTIAL OF THE BANKING SYSTEM

2.1 Assessment of supply and demand for credit and investment resources of commercial banks in Russia

2.2 Analysis of the effectiveness of credit and investment activities of the banking sector

III. OPTIMIZATION OF OPERATING PARAMETERS OF THE RUSSIAN BANKING SYSTEM

3.1 Prospects for increasing the efficiency of credit and investment activities of commercial banks of the Russian Federation

CONCLUSION

BIBLIOGRAPHY

INTRODUCTION

Overcoming the consequences of the economic crisis and entering a new trajectory of stable economic growth directly depends on strengthening the role of the Russian banking sector in ensuring economic development, available investment opportunities, and the efficiency of attracting financial resources, i.e. generated credit and investment potential and the effectiveness of its use in real sectors of the economy.

This formulation of the problem is due to the need to implement in Russia a long-term strategy for the formation of a credit and investment model of economic growth, taking into account the objective processes of globalization and the need to adapt the national economic and political environment to the conditions of modern economic relations. In terms of the scale of capital, the ability to mobilize and accumulate investment and credit resources in the domestic and foreign financial markets, and effectively transform savings into investments, the banking system must meet the requirements that are imposed on it by today's religions.

Banks, as the main financial institutions of Russia, must ensure the accumulation and effective redistribution of financial resources

One of the most pressing problems of Russia's economic development is the development and restructuring of the industrial sector. Without establishing mechanisms for the credit and investment process, solving this problem is not possible.

Today, macroeconomic indicators indicate trends in production growth in Russia, which are mainly due to favorable foreign trade conditions and the consequences of devaluation in import-substituting industries.

Note that one of the conditions for conducting effective credit and investment activities is a developed resource base and investment infrastructure serving this market segment.

The experience of foreign banks confirms that a developed credit and investment infrastructure not only facilitates interaction between participants in credit and investment activities, but also makes it fundamentally possible. Otherwise, the investment movement of capital, whether direct or portfolio, is not only difficult, but also dangerous for the participants in this process.

The desire of the banking sector to strengthen the relationship with the real sector of the economy, primarily on a credit basis, is a primary task, the formulation of which can be seen in the policies of the Bank of Russia and the Association of Russian Banks. Banks are universal intermediaries that have the rights and necessary tools to transform temporarily available funds into credit investments. In conditions of a shortage of own funds and a lack of, for most enterprises, attracted and borrowed sources of investment financing, bank loans are, in fact, the only solution to investment projects, the execution of which determines the expansion of the range of products and services provided and their quality, increasing efficiency and competitiveness activities of enterprises and organizations.

In the loan portfolios of Russian commercial banks, there has been a positive trend towards an increase in the volume and share of loans provided to enterprises in the real sector of the economy for investment purposes. However, in the structure of sources of financing fixed assets, bank loans make up a small share. On the one hand, there is an increase in the lending and investment activity of commercial banks, on the other hand, there are factors preventing the increase in the role of banks in investment processes.

One of these factors is the high level of risk in lending to investment projects, which requires the bank to highly organize the management of credit and investment activities. When lending to investment projects, the process of making management decisions should be based on achieving the optimal balance between maximizing profit and minimizing risk.

The development of an integrated approach to assessing the effectiveness of the credit and investment activities of a commercial bank, taking into account its functions and role in the economic system, and the development of recommendations for increasing efficiency becomes a priority scientific and practical task, especially in the context of insufficiently in-depth study of this topic in the research of economists.

Comparing the activities of banks and other financial organizations that claim to be actively involved in investment activities, we note that priority remains with the former.

The purpose of this work is to analyze the credit and investment potential of the Russian banking sector.

To achieve this goal, the following tasks were solved:

The methodological basis for the formation and use of the credit and investment potential of the banking sector has been studied

An analysis of the formation and use of the credit and investment potential of the banking system was carried out;

The optimization of the functioning parameters of the Russian banking system as a result of increasing the efficiency of using credit potential is considered

When writing the work, methods of systemic structural analysis, methods of expert assessments, and the index method were used.

The information and factual base of the course work are textbooks and educational literature, periodicals, analytical materials, Internet resources.

The course work includes an introduction, 3 sections, conclusions, and a list of references.

I. METHODOLOGICAL BASIS FOR THE FORMATION AND USE OF CREDIT AND INVESTMENT POTENTIAL OF THE RUSSIAN BANKING SYSTEM

1.1 Theoretical foundations of credit and investment activities of Russian banks

A modern commercial bank is a universal credit organization that provides clients with a wide range of services. Currently, in the conditions of fierce competition among financial institutions, a commercial bank is forced to expand the range of operations and services performed in order to obtain maximum profit. Modern banks are the main participants in the foreign exchange market and the securities market. They offer clients various types of consulting and trust services, provide insurance services through associated insurance companies, improve transactions with plastic cards, carry out real estate transactions through representatives, etc.

However, despite the wide range of operations and services of commercial banks, the provision of loans continues to be the main type of banking activity. Credit operations ensure the profitability and stability of the existence of commercial banks. However, along with profitability, credit operations carry major risks for the bank. The state of bank lending is of great importance for the development of the real sector of the economy, the formation of aggregate demand, expanding the opportunities of citizens to meet their needs, and is the object of government regulation.

The credit policy of a commercial bank determines the development strategy of credit operations and forms the basis of the credit process.

The bank's credit policy determines the objective parameters that must be followed by bank employees responsible for the process of granting and processing loans and their management. The credit policy determines the basis for the actions of the bank’s Management Board, the Board of Directors, the credit committee and strategic decision makers, and also provides an opportunity for external and internal auditors to assess the quality and efficiency of credit management in the bank.

Credit policy is a bank's strategy in the loan market. When forming a loan portfolio, the bank, guided by the principles of liquidity and profitability, must:

Determine the directions for using credit resources, taking into account their classification and structure;

Form the composition of the loan portfolio;

Formulate the conditions for granting a loan, taking into account various circumstances;

Credit policy plays a big role in the bank’s activities in the credit market:

Creates the prerequisites for the effective operation of a commercial bank in the financial market;

Minimizes the likelihood of errors in decision making;

Determines guidelines for the work of loan officers;

Ensures the efficiency of organizing the credit process.

The development of credit policy should take into account the bank’s goals, strategy and tactics of behavior in the market. When the goals are determined, it is necessary to begin developing a strategy and tactics for the behavior of a commercial bank in the credit market. The bank's credit policy includes a number of elements that are presented in table 1.1

Table 1.1

Elements of credit policy

Used as a protective measure in case of non-repayment of debt.

After the bank has developed a credit policy, it is necessary to provide for the procedure for its implementation. To do this you need:

Assign responsibility to specific performers for its implementation;

Periodically analyze and evaluate the progress of its implementation;

Make the necessary adjustments, taking into account changing conditions in the credit market.

The credit policy of a commercial bank is influenced by macroeconomic, regional and intrabank factors.

Macroeconomic factors include:

The state of the country's economy. The stability of the economy determines a liberal credit policy, and an unstable economy determines the policy of “expensive” money.

Monetary policy of the Central Bank. The Central Bank carries out credit restriction or expansion using tools such as reserve requirements, discount rates and open market operations. Under the influence of such instruments, banks' lending capabilities may increase or decline.

Undoubtedly, one of the most important factors determining the credit and investment potential of the banking system is the state of the money and credit market and the level of its liquidity. It is interesting to see how closely interconnected the M2 monetary aggregate in Russia is with the volume of funds provided by credit institutions to their clients - individuals and legal entities in various forms. To do this, you can calculate the correlation coefficient, which helps clarify the closeness of the relationship between data series. Calculation of the correlation coefficient for the period 2010-2016. (Table 1), which is estimated at 0.978, showed a high degree of interdependence between the volumes of bank lending, investment and the M2 aggregate, which characterizes the money and credit markets. This suggests that banks during 2010-2016. actively worked on the redistribution of cash and non-cash funds in accounts into the economy.

The credit and investment potential of a bank is largely determined by the size and timing of funds raised from the population, which should be used, among other things, for investment purposes.

The 2016 financial year was characterized by a significant increase in the volume of bank deposits of the population - by 19%. At the same time, the share of household deposits amounted to 29.5% of the banking sector's liabilities. The volume of loans issued by banks also increased: in January 2012, their size amounted to 17,966 billion rubles, and a year later - 31,582 billion rubles. Thus, with an increase in the volume of household deposits in banks over the period 2012-2016. by 72.7%, the total loan portfolio of the Russian banking system increased by 75.8%.

This indicates a readiness to provide funds to the economy at a pace that outstrips their mobilization. Analysis of the relationship between the volumes of household funds placed in Russian credit institutions and the size of the total loan portfolio of domestic banks from 2010 to 2016. was also carried out through the calculation of the correlation coefficient, the size of which was 0.94. This confirms the obvious high degree of dependence of credit investments of Russian banks on the volume of attracted funds from the population. However, the closer relationship between the volume of bank investments and the M2 monetary aggregate suggests that in the formation of sources of credit and investment resources, the funds of organizations play an important role.

Having generalized the correlation of the monetary aggregate M2, taking into account the total portfolio of deposits of the population and the size of the total loan portfolio of the banking sector, we can assert not only the presence of the credit and investment potential of the Russian banking system, but also that the mechanism for the redistribution of free funds of the population into the Russian economy through the banking sector in principle it works, or rather, it works in its credit part. However, it is difficult for credit potential to develop in an unfavorable environment. The latter is an investment climate that has been discussed for more than 15 years, the problems of improving which are still relevant today. The investment climate is a more complex category than credit and investment potential. Its formation depends not only on credit institutions, other areas of business, the current situation in financial markets of various sizes, etc., but also on the monetary policy pursued by the authorities. At the same time, required reserve norms are one of the most stringent instruments of monetary regulation. Mitrokhin V.V., Lukshina A.A. Tools for maintaining sustainable development of commercial banks

Reservation rates, among other things, are set by the regulator for the influx of foreign capital into the national economy. The lower the reserve ratio, the higher the efficiency of investments and the more attractive the economy is to foreign investors. Tightening the requirements of the Bank of Russia since the beginning of 2011 has reduced the investment opportunities and liquidity of banks. Even before the sanctions, it became unprofitable for non-residents - owners of capital - to place capital in Russia due to the presence of high costs of various kinds, as well as low investment efficiency.

The third factor determining the credit and investment potential of banks in terms of the own capabilities of credit institutions is the size of their own funds. It is also important from the point of view of the level of economic development, as well as the investment climate, because ensures the reliability and stability of the development of banking and payment systems. The general trend in the development of banking systems over the last ten years is the increase in the equity capital of banks, the importance of which was proven during the global financial crisis. The growth of their own funds allows banks to increase the volume of lending to the real sector of the economy.

During 2013, the volume of banks' own funds increased by 14% to 6.975 trillion rubles, and in 2014 - to 7.1 trillion rubles, i.e. by only 1.8%. This is due to the fact that at the end of 2012? The Bank of Russia made changes to the requirements for the amount of banks' own funds (capital) and increased the burden on credit institutions in 2013. In connection with this, banks began to actively increase their own funds in order to avoid violations of regulations, as well as to have the opportunity for further development. On the one hand, this is a positive fact from the point of view of assessing credit and investment potential and the investment climate. On the other hand, it confirms the high level of passivity of banks in caring about their potential.