The Legal Form of Financial Institutions as a Way to Protect the Rights of Financial Market Participants

2021 ◽  
Vol 10 (1-2) ◽  
pp. 29-46
Author(s):  
Valentina I. Borisova ◽  
Igor V. Borisov ◽  
Farkhad S. Karagussov
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Scientific Development ◽  
Legal Form ◽  
Market Participants ◽  
Legal Structure ◽  
Legal Forms ◽  
High Level ◽  
Legal Mechanism ◽  
Legal Entities

Abstract Financial institutions are the centre of economic and legal interests of participants of the financial services market, which is itself characterised by a high level of conflict of interests of its participants. The purpose of the article is the scientific development of the legal structure of organisational and legal forms of financial institutions, in the market of financial services, as a legal mechanism for reconciling the economic and legal interests of the main participants of this market. The features of basic and modified legal forms of legal entities are elaborated in this article. It is determined that financial institutions are established and operate in ‘modified’ legal forms. Such forms emerge due to the supplementation of the structure of the main elements of the basic legal forms of legal entities. This refers to additional functional legal means that reflect special requirements for the relevant types of legal entities, depending on the economic and legal interests of their founders/participants.

scholarly journals Cooperative versus Conventional (Joint-Stock) Banking In Europe: Comparative Resistance And Resilience During The Recent Financial Crisis

2016 ◽  
Vol 32 (5) ◽  
pp. 1341 ◽  
Author(s):  
Mireille Jaeger ◽  
Yasmina Lemzeri ◽  
Jean-Noel Ory
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
European Countries ◽  
Cooperative Groups ◽  
Legal Form ◽  
Return On Equity ◽  
Cooperative Banks ◽  
Legal Forms ◽  
Formed Part ◽  
High Level

During the banking crisis of the 1990s, French cooperative banks emerged as more resistant and efficient than joint-stock banks, which enabled them to improve their market share and increase their reserve capital. This subsequently became the keystone of the external restructuring that led to the transformation of cooperative banks into large universal banking groups. At the time, their competitive advantage relied mainly on a different approach to risk-taking, which was associated with their cooperative legal form and their specific governance model.However, the same features have clearly not prevailed during the financial phase of the most recent crisis.  Whereas governance models in the banking sector have been deeply questioned, the original cooperative model has evolved differently within European countries, with a high level of hybridization in some and a very diffuse cooperative network in others. Some European cooperative groups have been damaged by the crisis, mainly because of the corporate and investment banking that formed part of their activity.Yet the recent crisis has revealed the importance of a resistant and resilient worldwide banking system and the diversity of legal forms and organizations could contribute to achieving this goal. In this paper, we assess the resistance and resilience of major joint-stock banks during the crisis and compare them to cooperative banks in different European countries and Canada. We conduct our analysis at an aggregated/consolidated level for these two categories of banks. Using different indicators (e.g., z-score, loans to the economy, return on equity) as dependent variables, we verify whether the cooperative form is synonymous with greater resistance or resilience, and whether the results may be explained by different organizational schemes in cooperative banking.

scholarly journals Improving the system of quantitative indicators for risk assessment of financial companies

2021 ◽  
Vol 19 (1) ◽  
pp. 1-9
Author(s):  
Valeriia Shorokh
Keyword(s):  
Risk Assessment ◽  
Financial Institutions ◽  
Financial Services ◽  
Preventive Measures ◽  
Assessment System ◽  
Systematic Analysis ◽  
Market Participants ◽  
Banking Market ◽  
Research Goal ◽  
Quantitative Indicators

The paper examines the existing methodological recommendations for assessing risk of financial institutions of non-bank financial services market participants. In particular, the focus is on the activities of financial companies, which are the largest non-banking market participants. The purpose of the study is to develop an approach to risk assessment of financial companies. The methodological basis for achieving the goal is a systematic analysis of the existing provisions of the regulator on the criteria for assessing the risk of financial institutions. The paper examines in detail the state of the modern risk assessment system in accordance with the criteria developed by the regulator, identifies key shortcomings of the recommendations and proposes to supplement the existing list of indicators that were taken into account by the previous regulator. An analysis of the legislation on the availability of quantitative indicators for assessing risk of non-banking financial services market participants was carried out, which made it possible to offer an expanded list of criteria for achieving the research goal. The expediency of the proposed system of quantitative indicators for assessing the risks of activity is confirmed by the existing actions of the regulator, which partially coincide with the proposed provisions. The developed recommendations provide an opportunity to improve the risk assessment system both for inspections by supervisors and for financial institutions seeking to strengthen preventive measures for their management.

scholarly journals Vindication of Real Estate: The Stage of Building a General Vindication Model for the Protection of Violated Absolute Rights

2021 ◽  
Vol 17 (3) ◽  
pp. 47-53
Author(s):  
D. V. Murzin
Keyword(s):  
Real Estate ◽  
Russian Science ◽  
Legal Structure ◽  
State Register ◽  
German Model ◽  
The Right ◽  
High Level ◽  
Legal Entities

The article considers the legal structure of vindication of real estate developed in Russian science and practice. Protection of the rights of the owner of real estate who has lost possession and is not registered in the Unified State Register of Real Estate (EGRN) is carried out by filing two lawsuits in court: for recognition of the right of ownership and vindication. Due to the peculiarities of the statute of limitations, in Russian practice, the priority of actual ownership of real estate over the records of ownership in the Unified State Register of Legal Entities is established. The need to combine the two claims is caused by their possible competition in connection with the application to each claim of its own rules on the validity of the statute of limitations. The refusal to extend the limitation period to the vindication claim for the return of ownership should lead to the establishment of only one claim within the framework of the method of protecting the violated rights of the owner to real estate – vindication. An independent claim for recognition of the right in this situation seems redundant. Its necessity is caused by an attempt to apply the German model of protection of the violated rights of the owner of real estate, where the impossibility of vindication is due to the high level of public reliability of entries in the register. In modern Russia, the position of complete denial of vindication of real estate is not supported by the consistent implementation of the principle of irrevocability of rights registered in state registers. At the same time, the construction of a claim for the protection of the rights of the owner of real estate allows us to take the first step towards the development of a vindication model for the protection of any absolute right, the elements of which are the requirement to recognize the right and the requirement to restore the legitimation of the right holder.

scholarly journals ECONOMIC COSTS ON THE CHANGE OF ORGANIZATIONAL AND LEGAL FORMS OF ECONOMIC DECREASE BY RECORDING OF THE CIVIL CODE OF UKRAINE AND CANCELLATION OF THE ECONOMIC CODE OF UKRAINE: TO DISCUSSION

2020 ◽  
Vol 22 (1(74)) ◽  
pp. 80-87
Author(s):  
I.V. ZABLODSKA ◽  
O.P. PODTSERKIVNIY ◽  
D.V. ZABLODSKA
Keyword(s):  
Economic Activity ◽  
Methodological Approach ◽  
Civil Code ◽  
Economic Costs ◽  
Legal Form ◽  
Real Cost ◽  
Corporate Rights ◽  
Legal Forms ◽  
State Registration ◽  
Legal Entities

Topicality. Today, the scientific environment discusses a legislative proposal to abolish the Economic Code of Ukraine and enshrined in the recodified Civil Code of Ukraine types of organizational and legal forms of management based on corporate rights. Aim and tasks The purpose of the article is to develop a methodological approach to determining the economic costs of bringing legal entities to their organizational and legal forms and constituent documents in accordance with the requirements of the recodified Civil Code of Ukraine through the abolition of the Economic Code of Ukraine. Research results. The number of legal entities that are registered in Ukraine has been determined, which should change the legal form of economic activity and types of economic expenses: obligatory, highly probable, and unlikely. Compulsory expenses include expenses of legal entities for state registration of changes in constituent documents, administrative fee, payment of notary services, printing expenses. In addition, many legal entities may incur expenses related to: payment of legal services of third parties on state registration of changes in the constituent documents, production of new seals and stamps, payment of additional duties for the employees of the company. It is through registration of necessary documents, holding general meetings founders, transportation expenses for visiting state registration bodies, payment for printing services, etc. For some businesses, the costs may be increased by the cost of services such as: re-licensing, re-contracting with counterparties, re-issuing leases of land and real estate, as well as the amount of downtime associated with a reorganization. Conclusion. According to the results of the costs calculation for the change by the legal entities of their organizational and legal forms and constituent documents in accordance with the requirements of the recodified Civil Code of Ukraine. It is established that each legal entity will spend almost three thousand UAH, and the maximum amount of expenses depends on the type of economic activity and the legal form of management, and thorough an analytical research is needed to calculate the real cost.

scholarly journals The Use of Financial Products in Liquidity Risk Management by SMEs

2019 ◽  
Vol 1 (1) ◽  
pp. 273-281
Author(s):  
Mirosława Mioducka ◽  
Joanna Małecka
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Financial Services ◽  
Risk Identification ◽  
European Population ◽  
Training And Education ◽  
Market Participants ◽  
Financial Products ◽  
Adequate Understanding ◽  
Is Outsourcing

AbstractRisk, which is inherent to any business activity, is an issue that should be considered as early as at its conceptual stage and the very idea of its creation. The awareness of its existence and effective risk management is one of the factors which decide whether an organization will prosper or not. Control over possible risks can be exercised in several ways, one of which is outsourcing of risk to other market participants, such as financial institutions. This option is not a widespread solution in the Polish market, which may be due to low awareness among managers in the field of both risk identification and diversification. In the era of entrepreneurial economy, SMEs, which account for 99.8% of the European population and generate about 50% of GDP, having a significant impact on international trade, should become the primary addressees of training and education initiatives to inform them about risks and possibilities of their mitigation. The purpose of the article is to indicate financial services, mainly factoring, offered by money market institutions as an opportunity to improve current financial liquidity of enterprises, and to demonstrate the importance of education in adequate understanding and promotion of those solutions.

scholarly journals Competition and cooperation between fintech companies and traditional financial institutions

2020 ◽  
Vol 166 ◽  
pp. 13028
Author(s):  
Anatoly Suprun ◽  
Tetiana Petrishina ◽  
Iryna Vasylchuk
Keyword(s):  
Financial Market ◽  
Financial Institutions ◽  
Financial Services ◽  
New Technologies ◽  
Digital Technologies ◽  
Modern World ◽  
Market Participants ◽  
Competition And Cooperation ◽  
The Core ◽  
Near Future

The modern world is changing rapidly under the influence of digital technologies. This also applies to the financial sector of the economy. Since the mid-2000s, new fintech companies have entered the market. These companies are using new technologies to improve existing and create new financial services. In the course of their development, the interests of new market entrants often overlap with those of traditional participants, mainly banks. Investigation of the relations between fintech companies and traditional financial institutions gives an opportunity to form an idea of the financial picture of the near future. The research of the relations between fintech companies and traditional financial institutions gives an opportunity to form an idea of the financial picture of the near future. The article considers both aspects of competition and aspects of possible cooperation between financial market participants in a digital economy. The results of the scientific research demonstrate that cooperation will prevail over the competition. Probably existing financial institutions will reformat their architecture and become digital ones at the core.

scholarly journals The relationship between the performance and legal form of microfinance institutions

2017 ◽  
Vol 28 (75) ◽  
pp. 377-389
Author(s):  
Ruan Rodrigo Araújo da Costa
Keyword(s):  
Financial Institutions ◽  
Social Impact ◽  
Social Performance ◽  
Microfinance Institutions ◽  
Legal Form ◽  
For Profit ◽  
Governmental Organizations ◽  
Non Governmental Organizations ◽  
Legal Forms ◽  
The Relationship

ABSTRACT This paper investigates the relationship between the legal forms adopted by microfinance institutions (MFIs) and their performance within three scopes: financial performance, social performance, and efficiency in resource allocation. The MFIs studied are classified into four groups: banks, non-governmental organizations, cooperatives, and a fourth group formed of for-profit institutions not characterized as banks, made up of non-bank financial institutions (NBFIs) and rural banks. The data used are annual and cover the six years from 2007 to 2012. The quantitative regression model with panel data was used together with dummy variables to compare between the four groups of legal forms, except for the group made up of NBFIs and rural banks, which was not represented by any dummy variable. 304 MFIs from 59 countries made up the sample. In the study it was observed that larger MFIs have higher profits, higher returns, and higher operational self-sufficiency rates than smaller MFIs, indicating that MFI growth could enable consolidation in the microfinance market. The results also indicate that for smaller MFIs the way to consolidate and improve the indicators could be through assimilating or merging with other MFIs. It was also noted that non-bank financial institutions and rural banks are able to serve more customers and that cooperatives provide smaller loans, causing a bigger social impact, and that they obtain higher returns and profits. The results indicate that these legal forms may be the most appropriate for the microfinance market.

scholarly journals FORMATION OF UKRAINE TRANSPARENCY BANKING

2019 ◽  
pp. 35-41
Author(s):  
T. Savchenko ◽  
L. Mynenko
Keyword(s):  
Development Strategy ◽  
Financial Market ◽  
Financial Institutions ◽  
Financial Services ◽  
Banking Sector ◽  
Banking System ◽  
Market Participants ◽  
Financial Organization ◽  
Credit Bureaus ◽  
National Bank

The article analyzes requirements of the National Bank of Ukraine for transparency of banks, banking groups and non-banking financial market participants. Transparency development process in the Ukrainian banking sector considered in a dynamic and in context of the EU's transparency requirements. Authors came to conclusion that the National Bank of Ukraine have to extended last achievements at banks transparency issues on activities of banking groups and to non-banking financial institutions. This conclusion based on rudiments of effective supervision of banking groups on a consolidated basis, as well as the adoption by the Verkhovna Rada of Ukraine of the Law on "Split". This law extends the National Bank's responsibility in the supervision of non-banking financial institutions (insurance, leasing, financial companies, credit unions, pawnshops and credit bureaus) since July 2020. Therefore, the National Bank should introduce new regulatory requirements to increase the transparency of banking groups and non-bank financial intermediaries. These reforms will establish uniform approaches and standards for disclosure of information on the activities of financial institutions, as well as provide the harmonization of national legislation with EU requirements. Expanding the list of public reporting information and establishing proper reporting intervals will ensure the stable functioning of the financial market and will increase the confidence in the financial system by the users of financial services. These measures will also help management of the financial organization to make informed decisions in defining their development strategy. Besides, they will provide further development of the competitive environment in the financial services industry. Keywords: transparency of banking system, transparency requirements, bank, banking group.

scholarly journals Freedom of association (associations) as the dominant organizational and legal forms of legal entities

2021 ◽  
pp. 54-61
Author(s):  
S. A. Dekhanov
Keyword(s):  
Russian Federation ◽  
Freedom Of Association ◽  
Legal Form ◽  
Legal Entity ◽  
Legal Method ◽  
The Russian Federation ◽  
Political Freedoms ◽  
Legal Forms ◽  
Bar Association ◽  
Legal Entities

The article is devoted to the study of freedom of Association as a variety of political freedoms and the infl uence of the constitutional and legal method of securing freedom of Association (associations) on the organizational and legal forms of legal entities. The author consistently analyzes the French, German and British models of freedom of Association and gives examples of the infl uence of these models on other countries. Freedom of Association has a constitutional and legal form of consolidation in the Russian Federation, which receives the necessary specifi cation in civil legislation by constructing such organizational and legal forms as Association and Union. The author comes to the conclusion that in Russian law, an Association is a constitutional legal institution, while an Association and a Union are civil law institutions. In accordance with paragraph 18 of article 22 of the Federal law “on advocacy in the Russian Federation” and article 23 of the law on relations arising in connection with the establishment, operation and liquidation of the bar Association and law offi ces. The article focuses on the essence of a legal entity and a Corporation. The author believes that the legal structure (concept) of the Corporation originates from the activities of legists and canonists. The corporatist concept of legists covered any legal entities that did not coincide with a natural (natural) person. According to the author, the real turning point in the study of the nature of a legal entity occurred in connection with the activities of F. Savigny and his followers: B. Windscheid and G. Pukhta. The legal entity was also studied by R. Iering, I. Blunchli, O. Gierke and outstanding Russian scientists G. F. Shershenevich, N. M. Korkunov and others. Freedom of Association (associations), French, German, British model of freedom of Association (associations), Constitution, Corporation, ideal goal, business companies, non-profit partnership, bar Association, law office.

scholarly journals Organizational, local, and global innovativeness of family-owned SMEs depending on firm-individual level characteristics: evidence from the Czech Republic

Equilibrium ◽  
2021 ◽  
Vol 16 (1) ◽  
pp. 169-184
Author(s):  
Aleksandr Ključnikov ◽  
Mehmet Civelek ◽  
Vendula Fialova ◽  
Andrea Folvarčná
Keyword(s):  
Limited Liability ◽  
Value Added ◽  
Legal Form ◽  
Individual Level ◽  
Organizational Innovativeness ◽  
Legal Structure ◽  
Normality Test ◽  
Data Collection Process ◽  
Legal Forms ◽  
Industrial Zones

Research background: Comparing to larger businesses, SMEs encounter more problems in their operations. Since innovativeness enables SMEs to be more competitive against their rivals, having more innovative activities might make SMEs overcome these issues. Nevertheless, depending on businesses-founders/owners' characteristics, SMEs' innovativeness in organizational, local, and global extents might differ. Purpose of the article: This research explores differences in family-owned SMEs' innovativeness regarding the age of their founders/entrepreneurs, legal form, and succession of these businesses. Methods: The researchers used a questionnaire survey. Data collection process was completed in 2020. The research sample includes 343 family-owned SMEs that operate in Czechia. The normality test result directs the authors to perform an Independent sample T-test to find differences between selected variables. Findings & value added: According to the obtained results, global innovativeness does not differ depending on firms-owners/entrepreneurs' characteristics. However, limited liability firms perform better in local innovativeness than other firms structured in different legal forms. Moreover, the organizational innovativeness of SMEs with successors is greater than firms without successors. While organizational innovativeness does not differ depending on entrepreneurs/founders' age and legal structure of businesses, local innovativeness does not differ depending on entrepreneurs/founders' age and successors' existence in these businesses. The educational level of entrepreneurs/founders, sector, and SMEs' location might be reasons for similarities and differences between SMEs' innovativeness. From the policy perspective, based on the obtained results, the authors suggest creating industrial zones. Furthermore, policymakers' collaborations with other essential players in the market might stimulate innovative attitudes among businesses. This paper's main contribution to the existing literature is to fill the gap regarding organizational, local, and global innovativeness of family-owned SMEs by providing detailed and empirical results about entrepreneurs' and firms' characteristics. Thus, this paper might draw businesses, policymakers, academicians, and international readers' attention concerning family-owned SMEs' innovativeness.

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