Andros S. Strategy of Credit and Investment Activity of Banks in the Conditions of Financial Globalization

The thesis is devoted to the solution of an important scientific problem – the development of theoretical and methodological foundations, methodological support and scientific and practical approaches to the formation and effective implementation of the strategy of credit and investment activities of Ukrainian banks in the context of financial globalization. On the basis of logical generalization and comparison of a significant array of approaches of scientists, the economic essence and content of credit and investment activities of commercial banks is disclosed and an author's approach to the formulation of this concept is proposed. As a result of in-depth study of conceptual approaches to the strategy of credit and investment activities of banks, the author's definition of the "strategy of credit and investment activities of banks" was proposed. Features of financial globalization and its influence on the nature and forms of banking competition in the financial market are considered. Priority directions of the strategy of credit and investment activity are formulated and a functional model of development and implementation of the research strategy under financial globalization is proposed. The determinants of financial globalization are analyzed their positive and negative influence on the formation of the strategy of credit and investment activities of banks is established. The consequences of the influence of liberalization processes on the strategy of credit and investment activity of banks are revealed. A methodological approach to the mechanism for managing interest rates for attracting and placing financial resources in the context of financial globalization is developed. Approaches to supporting the liquidity of commercial banks in a situation of financial instability are suggested. Based on the analysis of uncertainty levels and strategies of credit and investment activities applied by banks on each of them, methodological approaches have been developed that allow evaluating financial instruments used by banks to make strategic decisions in conditions of uncertainty to support their competitive positions. The main provisions of the strategic planning system for the credit and investment activities of banks in the context of financial globalization are formulated. Conceptual bases of formation of the target complex program of credit and investment activity of banks are substantiated by definition of initial and target data, managing and controlled parameters, indicators of efficiency of credit and investment activity of banks. Methodological approaches to risk assessment and scenario modelling of business processes in the planning of credit and investment activities of banks have been improved. Methodical approaches to the qualitative assessment of the borrower's credit risk are proposed, in accordance with which, when creating a borrower rating, it is envisaged to combine the assessment of the collateral and its financial condition. Based on the application of the process approach and the balanced system of indicators, which is supplemented by groups of voluminous, income-cost, and structural parameters, methodological approaches to the strategic management of Ukrainian banks in the context of financial globalization are improved. Based on the factor analysis of the banks' credit activity strategy and taking into account the influence of financial globalization factors, a methodical approach to optimizing the value of the formed loan portfolio was proposed. Based on the principles of credit policy, the system of strategic management, analysis of the investment portfolio for the formation of its optimal structure, theoretical and methodological approaches to the evaluation of the effectiveness of the bank's credit and investment strategy are proposed. The system of economic indicators is improved to assess the effectiveness of the investment strategy of banks with securities. The methodical approach to the complex evaluation of the effectiveness of the strategy of commercial banks of Ukraine on a set of performance criteria is formulated. Methodical approaches to conducting multidimensional comparative evaluation of alternative strategies of banks are suggested. The features of banks lending to investment projects in the realities of the financial market are analyzed. On the basis of the scientific search, macro- and microeconomic factors of influence on the adoption of a strategic decision by the investor (bank) on entering it into the investment project are formulated. Factors constraining development of bank crediting of investment projects in conditions of financial globalization are established. The expediency of lending to investment banks by commercial banks is grounded. The methodical approach to the selection of alternative options for financing investment projects has been improved. Influence of inflation, uncertainty and risk on realization of the investment project is analyzed.