Evaluation of investment projects effectiveness in a bank’s activity

Economic Annals-ХХI: Volume 144, Issue 9-10(1), Pages: 98-101

Citation information:
Samorodov, B., Maslova, A., & Mysienko, O. (2014). Evaluation of investment projects effectiveness in a bank’s activity. Economic Annals-XXI, 9-10(1), 98-101. https://ea21journal.world/index.php/ea-v144-24/

Borys Samorodov
D.Sc. (Economics),
Associate Professor,
Head of Department,
Kharkiv Institute of Banking of the University of Banking of the National Bank of Ukraine
55 Peremohy Ave, Kharkiv, 61174, Ukraine
samorodov_bv@mail.ru

Anastasya Maslova
PhD (Economics),
Associate Professor,
Kharkiv Institute of Banking of the University of Banking of the National Bank of Ukraine
55 Peremohy Ave, Kharkiv, 61174, Ukraine
maslovaau@ukr.net

Olena Mysienko
PhD (Economics),
Associate Professor,
Kharkiv Institute of Banking of the University of Banking of the National Bank of Ukraine
55 Peremohy Ave, Kharkiv, 61174, Ukraine
mysienkoelen@mail.ru

Evaluation of investment projects effectiveness in a bank’s activity

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.

Keywords: Bank; Investment Project; Cash Flow; Incomes; Expenses; Efficiency; Evaluation Methods

JEL Classification: G21; G24; C52

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Received 21.07.2014