BANKING SECTOR AS SOURCE OF FINANCING MERGERS AND ACQUISITIONS IN THE RUSSIAN ECONOMY
At the present stage of financial and economic activity development, M & A transactions of Russian companies take a special place. For the successful conduct of M & A, the importance of financial security for such transactions is actualized. The most common and well-known institutions for financing M & A in Russia are banks. The purpose of the study is to determine the role of the banking sector in financing mergers and acquisitions, as well as in the construction of conditional schemes for such financing. Based on some examples, the financial and economic relations between the banking sector and companies that perform mergers and acquisitions, as well as the influence of the Central Bank of the Russian Federation on these processes among commercial banks, are determined.
Keywords: mergers and acquisitions, financial security schemes, financial market instruments, commercial banks, the Central Bank of the Russian Federation.
Highlights:
• the analysis of the Russian capital market in the form of bank loans and loans to finance mergers and acquisitions of companies made it possible to identify factors that determine the popularity of bank loans in financing M & A in the Russian economy;
• on the basis of factual and analytical data, a generalized scheme for financing M & A is constructed through bank loans. The scheme reflects the subjects of financial security and the main directions of financial resource flows and counter obligations;
• the constant complication of M & A financing forms by the banking sector is noted due to the dynamically developing instruments of the financial market. Mergers and acquisitions are financed through the use of derivatives, as well as through the purchase of shares and bonds on the securities market;
• the role of the Central Bank of the Russian Federation in financing possible M & A is determined, and the scheme of such financing is reflected.
Petr S. Kirichenko, a post-graduate student, Rostov State University of Economics.