IPO PLACEMENT AS A PRIORITY INVESTMENT ACTIVITIES OF UKRAINIAN COMMERCIAL BANKS IN CONDITIONS OF EUROPEAN INTEGRATION

Abstract

Abstract. Conceptual methods and scientific hypotheses concerning the formation and development
of the investment activities of commercial banks in Ukraine, as well as increase the
efficiency of interaction of the domestic banking sector to the global financial environment in
terms of European integration require the formalization of a set of measures, both national and
global.
The result of the analysis of theoretical positions and practical aspects of international experience
investment banking was the separation of the mechanisms of IPO as a key form of
banking in Ukraine in the field of foreign investment. Indeed, at the present stage of development
of the banking system of Ukraine, even in the short term can be a problem servicing the accumulated
debt, which appear particularly sensitive to the banks in case of default on foreign obligations.
In this case, the cost of funds for Ukrainian companies in foreign markets can increase
several times.
A similar threat to the commercial banks may be under unfavorable conditions in international
financial markets. In such a situation, banks can not post new Eurobond issues due to lack of investors in the market. This is the situation in the period 2007-2008, when the international
liquidity crisis, triggered by the mortgage crisis in the United States, gradually extending influenced
almost all areas of the financial markets and the normal functioning of the banking
systems of many countries, including the European Union. The inability to refinance their past
borrowing could lead to default of banks, if not found other sources of funding, including the
placement of shares through depository receipts on the European financial market.
Key words: investment banking, financial intermediation, the package of securities, initial
public offering, depositary receipts, stock exchange.