Investments in commercial banking : core concepts and risk management strategies
Vorobyev, Artem (2013)
Vorobyev, Artem
Turun ammattikorkeakoulu
2013
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201303052926
https://urn.fi/URN:NBN:fi:amk-201303052926
Tiivistelmä
What factors promote investment activities in the banking sector? Which hedging instruments could be used in order to limit corresponding risk exposure and, thus, safeguard investment operations of large financial intermediaries? How is it possible to explain the foundations behind recent European crisis? These and many other questions serve as dynamic forces behind current Thesis paper. While initial research objective was to conduct a profound study of the role that commercial banking investments maintain in contemporary financial markets, the scope of the investigation has been substantially expanded in order to focus on major concepts of investment risks and, therefore, explore potential negative aftermath for institutional investors. Gradually, the concepts of liquidity (solvency) and profitability have been introduced as the cornerstones of investment banking: depending on the size of financial institution, the focus of investment activities could be shifted in favour of either liquid assets or profitability margins and, thus, greater financial hazards. Further analysis of risk management strategies has been supplemented with empirical examination of five major financial institutions in Finland. Even though initial research methods centred on the interview questionnaire, subsequent parts of the research are wholly based on the observations derived from annual financial and risk management reports. Empirical investigation has not just revealed implementation techniques that could be successfully utilized in investment risk management strategies of professional banking, rather uncovered interesting details about the state of
financial affairs of commercial banks involved in the study and the way they comply their operational activities with the upcoming changes in financial regulations. While the final summarizing chapters of the Thesis project tend to arrive at objective conclusions, commonly they serve as a mere indication of how commercial banks handle their investment operations in response to general volatility of financial markets in the course of a certain time frame. In other words, taking into consideration new observational data might alter or revise the conclusions completely.
financial affairs of commercial banks involved in the study and the way they comply their operational activities with the upcoming changes in financial regulations. While the final summarizing chapters of the Thesis project tend to arrive at objective conclusions, commonly they serve as a mere indication of how commercial banks handle their investment operations in response to general volatility of financial markets in the course of a certain time frame. In other words, taking into consideration new observational data might alter or revise the conclusions completely.