FUNCTION OF BANKS ON THE SECURITIES MARKET

Abstract

This paper describes the issues related to the
investment securities market, and the function of
the role of banks in the process. Here, the emphasis
is on the experiences of developed countries,
especially the U.S.A. In recent years, banks and
other deponent institutions have had a tendency
to accept higher risks and more complex investments
in their portfolio. There have appeared
new instruments whose purpose is more than
just provision of liquidity and income, especially,
in cases of poorloan demand. An instrument
for swap of the bank portfolio and other institutions-
lenders mostly practice replacing the
portfolios of their investment securities,bearing
in mind tax,as well as higher revenues.