0.1 Increase of efficiency in the use of securities in eliminating  (Page 5/4)

An essential requirement for the banking sector, in the realization of the conditions to eliminate the consequences of the world financial crisis, is that commercial banks must evolve their approach to the use of available financial resources, in particular the evolution of an efficient policy for mobilization of financial resources through the security markets. In this connection, further successful functioning of commercial banks in the Commonwealth of Independent States (CIS) countries becomes almost impossible without skillful use of huge potential of the securities, capable of making a positive impact on strengthening the structure of their capital, the expansion of their resource and client base, the increase of level of liquidity, and profitableness of the bank business.

Under conditions in which there is insufficient capitalization at the majority of banks of their own circulating assets, the securities market becomes one of few real solutions to the problem. It is important to research into means for development of a bank business and innovative development of enterprises. On the other hand, recent events have convincingly demonstrated that, during the post crisis period, banking institutes should not only learn how to use the huge potential of securities, but they must also take an active part in the restoration of trust of both large institutional investors and skilled investment intermediaries.

The world financial crisis has forced many banks to reconsider their business strategies, by emphasizing the search of alternative sources of expansion, strengthening their resource base with the increase of level of capitalization, and the ability to get through the struggle for available managed financial resources and savings by individuals. The effective help in increasing the level of capitalization of bank institutes was rendered by the governments of many countries of the world.

To the internal factors influencing increase of level capital adequacy of bank business in the country, it is necessary to carry such factors as:

• A real rate of inflation.
• Features of an investment policy spent by the state.
• The character of regulation of issue activity of banks.
• The degrees of their interest in expansion of scales of additional release and placing of stocks.

Thus, the constantly growing capital of commercial banks, and the potentials of its basic functions that play the important role in maintaining sustainable development of banking establishment, has demanded the formation of an accurately expressed emission policy directed to escalating the level of its capital intensity and maintaining the necessary level of capital adequacy of banks. However, a condition for the increase in investment appeal of securities provided by the banks should become the radical re-structuring of various parties of bank business, the introduction of effective methods of corporate governance directed on maximization of profit and reduction of risk, carrying out weighed dividend policies and the constant training of bank personnel to the expansion of a spectrum and improvement of quality of services rendered to clients, and also a permanent work on ensuring the transparency of the bank business as a whole.