Investment policy as a basis

One of the key elements of effective portfolio management is designed investment policy should ensure the effective management of the portfolio securities of the bank, careful control over them and minimizing losses from the onset of the investment risks. Banks are successful when risks are controllable, and are within their financial means. Investment policy of the bank - it's part of the financial policy of the bank, which ensures that the most effective instruments of capital investment and timely reinvestment. The main objective of the investment bank's policy is to create a balanced and qualitative approach to managing investment risk. The choice of investment policy involves setting goals, objectives and scope of the invested funds in securities. The objectives of the investor should be formulated taking into account both profitability and risk. This stage of the investment process generally results in the election of the potential types of securities for inclusion in the portfolio. This choice should take into account both general considerations of profit and investment objectives, investments, risks and taxation. Category: Management Operations Commercial Bank