The Research Of The Investment Activities Of Commercial Bank Of Russian Federation

The banking system is an important part of the market economy.In many ways,the banking industry determines the level of economic development by influencing investment in various industries.The current law provides commercial banks with economic freedom in the management of funds and income,so banks invest in entrepreneurial activities and other activities in order to obtain profits.Investment banking at the expense of own resources and external funding.The basic principles of effective investment activities of banks include: availability of professional staff(because investment banking is largely dependent on the effectiveness of investment decisions);diversification attachment(attachments should be limited to the types of securities,sectors,regions,maturity,etc.);liquidity of investments(the investments should be highly liquid so that they can quickly shift to the instruments,in connection with a change in the market become more profitable,and that the Bank could quickly get back his investment).Investment activities refer to a series of practical actions of investing funds and implementing investment.A bank's investment activity usually refers to investments in private securities and public securities over a considerable period of time.The main factor that drives commercial banks to invest is profitability(investment is the second largest source of profit after a loan)and liquidity.The profitability of commercial bank investment depends on the stability of the national economy and its legal system,the development level of the financial system,the development of the securities market,the effectiveness of the securities market and the period of maturity of the securities.Bank investment activities are carried out at the expense of their own resources and external funds.Besides,they include the basic principles of effective investment bank: usability professionals(because the effectiveness of banking investment depends largely on the investment decision;the diversification of investment(investment)should be limited to securities,industry,area,maturity,etc.);investment liquidity.In investment,banks need to find the best choice between profit seeking and commercial bank liquidity guarantees.When a commercial bank invests in securities,there is the possibility of an investment risk that defines the conflict between profitability and liquidity,and represents the aggregation of credit,market,and interest rate risk.The most difficult aspect of investment activity is the determination of its output.The profits of bonds and stocks depend largely on two factors,namely inflation and taxes.In order to obtain the actual return on securities,the total yield should be higher than the current rate of inflation.Therefore,in order to achieve the best combination of security and profitability of banks,banks form portfolios and constantly monitor their effectiveness.Portfolio management is to maintain a balance between liquidity and profitability.The amount of securities owned by the bank is directly related to the ability of the bank to actively manage investment securities,and depends on the size of the bank.This paper discusses the concept of investment,its classification and forms,and the definition of investment strategy of commercial banks.This paper selects the index data from December 30,2012 to December 31,2015.This paper mainly includes the Russian Federation commercial bank savings investment activities,in addition,this paper analyzes the investment index,and on this basis,puts forward recommendations of solving the problems of diverted investment activities.In order to gain a better understanding of Russian banking investment activities,this article includes a comparative analysis of the legal basis for investment activities in China and Russia.