Commercial banks in the securities market
The market for the financial system is an importantelement. In Russia, such a system began to be formed only in the late eighties, when the government realized the need to restore the market mechanism. Practice has shown that one of the most important means for the restoration of the market is commercial securities that determine the owner's ownership of capital.
At the same time, the importance of banks on RZB is unconditional andunderstandable. Commercial banks in the securities market act as an issuer of bonds, shares, bills of exchange, and so on, as investors who purchase securities on their own money, as well as professional participants in securities trading, dealing in brokerage, trust and depository activities.
In Russia, bank bonds do not usegreat demand, although in the global financial market they have a lot of weight. We will try to consider in more detail what specific activities are carried out by commercial banks in the securities market.
In different countries, RZB has different places for commercial banks, but it is possible to identify common points in the interaction of banks with RZB.
In the world practice, active penetration of banksRZB began in the fifties. Penetration was both direct and mediated form. In countries where the activities of banks in this market are restricted by law, for example in the US, Canada and Japan, they have found indirect ways to participate in intermediary and investment activities through cooperation with brokers, trust operations, lending and so on.
Commercial banks are best atthe German securities market, where they have the opportunity to legally carry out various operations with securities. That is, banks act as issuers, mainly issuing their bonds, large investors and, finally, intermediaries.
In all corners of the world, the incomes of banks from operations at RZB have an increasing weight in the formation of aggregate profits.
The expansion of the participation of banks in the work of the RZB led tothe emergence of large banking groups, led by commercial banks, focusing around themselves brokerage firms, consulting firms, investment funds, trust companies and so on.
Commercial banks create a wide network of subsidiariesenterprises and branches, thus leaving the international market. The investment activity of such branches is growing in scale with time. This is especially true for banks in countries that impose restrictions on banking transactions on securities.
Banks in the securities market have discovered for themselves anda new form of activity - the provision of advisory services on topics related to the investment of capital in assets. This type of service basically has an internal information system of banks, which makes it possible to carry out an in-depth analysis of the ratio of risks and revenues from specific assets. Therefore, customers of banks receive certain algorithms for the purchase of assets and portfolio formation, taking into account the expected dynamics of yield.
Of course, in modern conditions, commercialbanks in the securities market act as issuers of various securities and have the right to carry out intermediary transactions, receiving commission fees.
The most regulated and developed withpoint of view of methodological features is the activity of issuing securities by banks. Intermediary and investment activities are not so strongly regulated. But it should be said that banks are active in both directions.