The basic principles of investment policy banks

1. The linkage of investment policy with the overall strategy of economic development of the bank. The investment policy should be considered as one of the essential elements of the overall economic development strategy of the bank and requires the consent of its deposit and lending policy, the policy management of banking risks. As one of the major elements that make up the overall economic development strategy, investment policy must be consistent in their goals with the overall strategy and not to enter into conflict with it. 2. Into the development of the state investment policy of the country and its development in a given period. 3. Account when developing the investment policy of forecasting financial market conditions. In determining the strategic objectives of the bank on the amount of its investment activities, the choice of forms of investment must be projected and included some changes that are expected in this period in the financial market in general and in those market segments in which the bank is (or will spend) their investment activities. Due to cyclical and constant volatility of the financial market, some of its segments to systematically explore the state of its environment for the formation of an effective investment policy and its adjustment in certain areas. Category: Management Operations Commercial Bank