EVALUATION OF INVESTMENT PROJECTS EFFECTIVENESS IN A BANK’S ACTIVITY Cover Image

EVALUATION OF INVESTMENT PROJECTS EFFECTIVENESS IN A BANK’S ACTIVITY
EVALUATION OF INVESTMENT PROJECTS EFFECTIVENESS IN A BANK’S ACTIVITY

Author(s): Borys Samorodov, Anastasya Maslova, Olena Mysienko
Subject(s): Economy
Published by: Institute of Society Transformation
Keywords: bank; investment project; cash flow; incomes; expenses; efficiency; evaluation methods

Summary/Abstract: Introduction. The basic task of the bank’s investment project development is to prepare information that is necessary to grounded decision making about the investments practicability. Therefore, the problem of the methodological approaches adaptation for investment project efficiency evaluation and their practical implementation in bank’s activity gains the particular actuality in today conditions of investment business. Purpose. Grounding of correlation between methodological approaches for the investment project efficiency evaluation and their practical implementation in bank activity. Methods. Usage the system analysis and comparison analysis allows identifying the correlation between methodological approaches to investment project efficiency evaluation and their practical implementation in bank activity. Results. Determination of the bank’s investment effectiveness indicators helps to evaluate the considered investment project from the point of view of acceptability for the next analysis, to perform the comparison evaluation of the competitive investment projects package and to rank them, to select the investment projects which meet the given correlation of effectiveness and risk. The results of bank’s investment activity mostly depend on validity of investment decisions and accounting at their acceptance varied indicators, the basic of which are: investment resources limitation; variety of the investment types and investments decisions variants; differences in investment projects costs; differences in investment qualities, in proposed objects of investments; risks connected with investment decision making. Conclusion. The authors have grounded the necessity of performing the risk management that should start from prediction the aftermath of the current (present) indicators deflection from the predicted under the influence of demand decreasing, decreasing the interest rates and varying of other parameters. Also, the authors have performed the cash flow systematization from the practical viewpoint of the bank’s activity that is conditioned by investment project.

  • Issue Year: 2014
  • Issue No: 09-10(1)
  • Page Range: 98-101
  • Page Count: 4
  • Language: English