Factors influencing the selection of securities

1. External: related to the overall state of the economy in the country (inflation risk, the level of bank interest rates) associated with state regulation of the structure of the portfolio (taxes, the size of reserves, risks and regulations, etc.) related to the characteristics of valuable paper (the expected rate of return on securities, tax characteristics of the securities, interest rate, credit risk, or risk of default by the Issuer of its obligations, the risk of early withdrawal of the security) 2. Internal: specialization of the bank (the bank is a universal or specialized in certain types of operations the securities industry or regional specialization, etc.), amount and structure of investment funds and securities, etc. in terms of their inherent qualities of the investment is classified by the main features, shown in Fig 2.1.. However, the main task in the financial investment is the valuation of investment properties of specific types of securities traded in the market. In view of its goals and mindset each investor chooses the specific forms and types of securities. The result of the first phase of the portfolio is to determine the ratio of equity and debt securities in the portfolio, and For each of these groups - the proportion of certain types of financial instruments (stocks, bonds, etc.). Stage 2 - the formation of certain types of portfolios by selecting securities necessary to ensure the established criteria of profitability, risk and liquidity. Category: Management operations of commercial banks