38. Types of institutional investors and their role in the global financial markets. Типы институциональных инвесторов и их роль на мировых финансовых рынках.

Institutional investors are organizations which pool large sums of money and invest those sums in securities, real property and other investment assets. They can also include operating companies which decide to invest their profits.

Typical investors include banks, insurance companies, retirement or pension funds, hedge funds, investment advisors and mutual funds.

In essence institutional investor, an accredited investor is defined in the rule as:

• a bank, insurance company, registered investment company, business development company, or small business investment company;

• an employee benefit plan, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 mio;

• a charitable organization, corporation, or partnership with assets exceeding $5 mio;

• a trust with assets in excess of $5mio, not formed to acquire the securities offered, whose purchases a sophisticated person makes;

• a director, executive officer, or general partner of the company selling the securities;

• a business in which all the equity owners are accredited investors;

• a natural person who has individual net worth, that exceeds $1mio at the time of the purchase;

• a natural person with income exceeding $200,000 in each of the two most recent years.

Their role in the economy is to act as highly specialized investors on behalf of others. For instance, an ordinary person will have a pension from his employer. The employer gives that person's pension contributions to a fund. The fund will buy shares in a company, or some other financial product. Funds are useful because they will hold a broad portfolio of investments in many companies. This spreads risk, so if one company fails, it will be only a small part of the whole fund's investment.

Investors follow the purchases of institutional investors, as such actions are considered to be perspective.

39. The functions of the international financial organizations (imf, World Bank, bis). Функции международных финансовых организаций (мвф, Всемирный банк, Банк международных расчетов.)

The IMF is an international organization that was initiated in 1944 at the Bretton Woods Conference and formally created in 1947 by 29 member countries. Primary purpose of IMF is to develop policies regarding money monitoring, uniform standards for currency exchange and stable payment systems that should be mutually accepted by all the member countries of IMF (188 nowadays). The purposes of the IMF are: 1.To promote international monetary cooperation; 2.To facilitate the expansion and balanced growth of international trade; 3.To promote exchange stability; 4.To assist in the establishment of a multilateral system of payments; 5.To give confidence to members by making the general resources of the Fund temporarily available to them under adequate safeguards. Functions of IMF are to develop fair and monitor currency exchange rates among all the countries. IMF also provides short term loans to its member countries so they could bring their imbalanced payment system into balance. One more important function of IMF is to draw lending money model for borrower countries. In this way IMF also acts as Debtor. IMF also provides Training and Technical assistance in the areas of finance management system, Tax system, banking system development to its member. It provides advice on microeconomic development.

The World Bank Group - the main function is the provision of low interest loans, credit that is interest free as well as aids to the least developed countries for the development in the field of education health and infrastructure. It has 187 member-states. The World Bank's (the IBRD and IDA's) activities are focused on developing countries, in fields such as human development, agriculture and rural development, environmental protection, infrastructure, large industrial construction projects, and governance. IBRD (1944) - aims to reduce poverty in middle-income and creditworthy poorer countries by promoting sustainable development through loans, guarantees, risk management products, and analytical and advisory services. The funds for this lending come primarily from the issuing of World Bank bonds on the global capital markets. IDA (1960) is the part of the World Bank that helps the world’s poorest countries. IDA is funded largely by contributions from the governments of the richer member countries. IDA loans address primary education, basic health services, clean water supply, etc. These projects are intended to pave the way toward economic growth, job creation, higher incomes and better living conditions. IFC (1965) is the largest global development institution focused exclusively on the private sector in developing countries. The main purpose is to create opportunity for people to escape poverty and improve their lives. MIGA: the mission is to promote FDI into developing countries. It provides political risk insurance guarantees to private sector investors and lenders, protects investments against-non-commercial risks, and helps investors obtain access to funding sources.

The mission of the Bank for International Settlements (BIS) (1930) is to serve central banks in their pursuit of monetary and financial stability, to foster international cooperation in those areas and to act as a bank for central banks. The BIS pursues its mission by: promoting discussion and facilitating collaboration among central banks; supporting dialogue with other authorities that are responsible for promoting financial stability; conducting research on policy issues confronting central banks and financial supervisory authorities; acting as a prime counterparty for central banks in their financial transactions; and serving as an agent or trustee in connection with international financial operations. As its customers are central banks and international organizations, the BIS does not accept deposits from, or provide financial services to, private individuals or corporate entities.

40. The major functions of international banking: international trade financing, participation in the interbank foreign exchange and Eurocurrency markets, international investment banking services, and sovereign lending. Главные функции международного банкинга: финансирование международной торговли, участие в обмене валют, евровалюты, международные инвестиционные услуги, суверенные займы.