The role of banks in the process of the restructuring of joint  (Page 9/2)

The world has developed many forms and methods for the participation of banking institutions in the modernization, technical and technological development of joint-stock enterprises (companies with Government shareholders). Such participation allows for a raised level of competitiveness of the joint-stock companies, and a general efficiency of a social production:

• The creation of new jobs (positions).
• The improvement of the working environment.
• Redefining corporate culture (code of ethics).

As a prospective direction of the activity of banks in creating the conditions for the elimination of the consequences of the world financial crisis, their participation in restructuring the activity of strategically important joint-stock enterprises make a significant impact in the core of real sectors in the economies (i.e., services and manufacturing) of the majority of the Commonwealth of Independent States (CIS) countries. In particular, their potential impact can be in the creation of new jobs, the modernization of manufacturing processes, the production of goods for export, and the management of coorporate marketing efforts.

Considering their status and historically developed image as reliable financial institutions, and taking into account capitalization and financial mediation, the CIS banking sector is much better prepared in the role of institutional investors, than the operating companies or investment institutes. The CIS banks can accompany the joint-stock enterprises through the whole process of preparation and realization of programs of restructuring, as well as providing good capitalization, qualified managers, and provide a high quality of institutional investor.

Starting this modernization processes, commercial banks should represent accurately the maintenance and volumes of forthcoming changes in organizational structure of the joint-stock enterprises’ management, in the industrial-economic sphere of the given specific category of the company, in the structure of their property, and also in the structure of actives and assets and liabilities.

The great value in the process of modernization of the joint-stock enterprises is the correct choice of various forms of restructuring that can include restructuring of the structure of its share capital, restructuring of available debts or restructuring of actives at the companies disposal. Restructuring of the structure of the share capital of a joint-stock company should be directed on optimization of corporate relations between shareholders, and attaining parity between the quantities of ordinary actions as a part of their large packages that are in the property of separate co-owners of the enterprise. Restructure of debts available for the joint-stock enterprise should be in repayment, write-off, a delay, installments, converting, debt consolidation, and also in purchase or sale of promissory notes, an exchange of separate kinds of debts. Restructure of actives at the enterprise should assume sales by bank of its superfluous actives, tenancy, transfer to pledge of a part of actives, property acquisition, parity change between real and financial actives, liquidation of unprofitable actives.