Home  Journals  Financial Analytics: Science and Experience  18(204) - 2014 May

Level of capitalization of the Russian bank sector and entry of banks into securities market: specifics, practical approaches

Available online: 11 May 2014

Subject Heading: Securities market

JEL Classification: 

Pages: 43-49

The article reveals the entry of banks into securities market, in particular on means of IPO, as more preferable. It allows increasing the volume of fixed capital and solving a problem of reducing the level of capital adequacy. Bank shares entry in the open market allows commercial banks to attract relatively inexpensive source of funding for its activities and use the funds for further development, increasing the volume of its lending and investment activities.

Keywords: bank, capitalization, securities market, initial public offering

References:

1. Akulich M.V. Otsenka stoimosti biznesa [Estimation of business cost]. St. Petersburg, Piter Publ., 2012, 272 p.
2. The Bank of Russia Resolution “On Method of determination of own funds (capital) of credit institutions” of February 10, 2003 № 215-P (In Russ.)
3. The Bank of Russia Instruction “On Mandatory standards of banks” of January 16, 2004 № 110-I. (In Russ.)
4. Fedorenko I.N., Chaldaeva L.A. Vnutrennii kontrol' kak faktor obespecheniia effektivnosti deiatel'nosti uchastnikov rynka tsennykh bumag [Internal control as a factor of ensuring efficient activity of securities market participants]. St. Petersburg, St. Petersburg State Polytechnic University Publ., 2012, 184 p.

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ISSN 2311-8768 (Online)
ISSN 2073-4484 (Print)

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