| Abstract |
The banking sector plays a leading role in the financial market efficiency. Nevertheless, current global trends can have a significant negative impact on financial markets, thereby directly affecting the banking sector. This necessitates regular revision and improvement of banking strategies, in particular, investment strategies. The aim of this study is to identify priority areas of the investment strategy of the banking sector in the context of financial market instability. The research involved the methods of economic and statistical analysis, namely horizontal and vertical analysis, forecasting based on retrospective data, the comparison method, and the radar method. The analysis of trends in the investment activity of Ukrainian banks gave grounds to determine that the banking sector is characterized by low investment activity, and banks invest mostly in government securities. A comparison of the investment portfolio of Ukrainian and German revealed the high dependence of the volume of the portfolio of Ukrainian banks on geopolitical events, while German banks demonstrate greater stability. The general directions of the banks' investment strategy in the context of financial market instability (diversification, monitoring, ensuring liquidity) are proposed. More specific directions of that strategy are also defined: investment in stability and resilience, investment in the recovery and development of post-conflict regions, strengthening of financial inclusion. The practical value of the work is the possibility of using its results by state managers and bank management to increase the effectiveness of the investment strategy in the long run. Further research will focus on developing an investment business model of banks taking into account the sustainable development principles using the example of one of the leading banking institutions of Ukraine. |
