None of the financial instruments

Therefore inevitable compromise. If the security is reliable, then the yield will be low, since those who prefer reliability, will offer a higher price and reduce profitability. The main goal of portfolio management is to implement the basic policies of the financial investment of the bank by choosing the most profitable and safe financial instruments. In other words, an appropriate set of instruments designed to reduce the risk of the depositor to a minimum and at the same time to increase his income to the maximum. Given the stated primary objective to build a system of specific local objectives of portfolio management, the main ones are: to provide high-level form of investment income in the current period and high growth rates of capital invested in the future long term support to minimize the level of investment risk associated with financial investments, To ensure the necessary liquidity portfolio, compliance with regulatory requirements of regulatory authorities (NBU), to maximize the effect of "tax shield" in the process of financial investment. Indicates the specific purpose of managing a portfolio of securities to a large extent are alternative. Thus, to ensure high growth rates of capital invested in the long run, to some extent achieved by significantly reducing the formation of investment income in the current period, and vice versa. Growth rates of capital invested and the level of formation of the current investment return is directly related to the level of investment risk. Providing necessary liquidity portfolio may prevent the inclusion of both high-and low-risk financial investment instruments. Category: Management Operations Commercial Bank