scholarly journals Financialization of The Economy and the Need for Personal Finance Advisory Services

e-Finanse ◽  
2016 ◽  
Vol 12 (2) ◽  
pp. 13-23 ◽  
Author(s):  
Krzysztof Waliszewski
Keyword(s):  
Financial Markets ◽  
Financial Institutions ◽  
Personal Finance ◽  
Financial Information ◽  
Basic Knowledge ◽  
Financial Advisors ◽  
Financial Systems ◽  
Financial Decisions ◽  
Advisory Services

Abstract Financialization of households is a result of the growing role of financial systems and instruments in the economy. The increased role of financial phenomena in financial and non-financial decisions taken by households is not proportional to capabilities of their perception and understanding by households which possess basic knowledge in finance. The missing link between institutions and financial markets offering more complex financial solutions and the consumer may be a financial advisor who can perform many important roles with respect to households. The aim of this article is to present financialization of the economy and households and the role that can be played by financial advisors in decreasing the imbalance of information between the consumer and financial institutions, as well as the lack of symmetry in understanding financial information by the consumer.

Financial Structure and Incentives

2012 ◽  
Vol 221 ◽  
pp. R23-R30
Author(s):  
Martin Čihák ◽  
Asli Demirgüç-Kunt
Keyword(s):  
Financial Markets ◽  
Financial Institutions ◽  
Risk Taking ◽  
Global Financial Crisis ◽  
Financial Sector ◽  
Financial Systems ◽  
Regulatory Approach ◽  
Private Incentives ◽  
The Global Financial Crisis

The article connects two streams of recent research on the financial sector. The first is the regulation literature, which emphasises the central role of incentives in the financial sector. It points out that the challenge of financial sector regulation, highlighted by the global financial crisis, is to align private incentives with public interest without taxing or subsidising private risk-taking. The second stream of research relates to financial structures and examines the mix of financial institutions and financial markets in an economy. It finds that, as economies develop, services provided by financial markets become comparatively more important than those provided by banks. The article brings these two streams together, pointing out that — as financial systems develop from bank-based to market-based — a traditional regulatory approach that relies on banking ratios becomes less effective. There is thus a greater need for properly monitoring and addressing the underlying incentive weaknesses in market-based systems.

scholarly journals Climate Litigation in Financial Markets: A Typology

2019 ◽  
Vol 9 (1) ◽  
pp. 103-135 ◽  
Author(s):  
Javier Solana
Keyword(s):  
Financial Markets ◽  
Research Area ◽  
Financial Systems ◽  
Public Authorities ◽  
The Past ◽  
The World ◽  
Private And Public ◽  
Sustainable Finance ◽  
New Research

AbstractOver the past few years, the number of climate cases being filed against corporations and public authorities around the world has been on the rise. Aware of the central role of finance in economic development, the financial sector has remained vigilant. Traditionally, climate litigation in financial markets had been rare, but that seems to be changing: in 2018 there were more cases filed than in any previous year. The development of existing and forthcoming private and public sector initiatives with the aim of promoting sustainable finance may usher in even greater numbers in the next few years. This article provides the first systematic overview of climate cases in financial markets and introduces a typology to classify this type of climate case. This classification reveals common issues across different financial systems and raises questions for further enquiry that define a new research area within the emerging literature on climate litigation.

scholarly journals Formal rural financial markets in Nigeria: An attractive or deceptive development alternative?

2000 ◽  
Vol 3 (3) ◽  
pp. 469-483
Author(s):  
Gabriel S. Umoh
Keyword(s):  
Financial Markets ◽  
Financial Institutions ◽  
Agricultural Cooperative ◽  
Self Help ◽  
Rural Financial Markets

This paper uses the outreach paradigm to examine the role of two formal rural financial institutions (Nigerian Agricultural Cooperative Bank and People's Bank of Nigeria) in development financing in Nigeria. Findings show that the two institutions have fared relatively well in the outreach to their target clientele, except women. The paper also suggests that for wider outreach, effective linkage with rural self-help is necessary.

Islamic Finance Fundamentals With Applications in Malaysia

2016 ◽  
Author(s):  
Shahriza Osman ◽  
Zahiruddin Ghazali ◽  
Syed Mohd Na’im Syed Salim
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Banking System ◽  
Basic Knowledge ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Risk And Uncertainty ◽  
Financial Systems ◽  
Political Economic ◽  
Financial Issues

Islam postulates a unique link of contracts among the creator, man and society on the basis of Syariah law that directly affects the workings of the various social, political, economic, and financial systems. Therefore, to understand the way in which economic affairs and financial institutions are organized in an Islamic system, it is first necessary to comprehend the nature of this relationship. Consequently, one cannot study a particular aspect or part of an Islamic system, economics, for example, in isolation, without having understanding of the basic knowledge of Islamic finance. Islamic finance products are contract-based. This book explains Islamic finance, which refers to the provision of financial services in accordance with Syariah law in chapter one. The Syariah law is the foundation for the establishment of an Islamic banking system. Chapter two illustrates the differences between the principles of Syariah and Tabii. Chapter three explains the Islamic theory of profit. Chapter four is about risk and uncertainty, which is known as gharar in Islamic finance. Chapter five discusses interest/riba, which is the most significance principle of Islamic banking. Chapter six explains some of the financial issues related to Islamic banking.

The Role of Analytics and Robo-Advisory in Investors' Financial Decisions and Risk Management

2021 ◽  
Vol 8 (2) ◽  
pp. 46-62
Author(s):  
Abhinav Pal ◽  
Shalini Singh Sharma ◽  
Kriti Priya Gupta
Keyword(s):  
Risk Management ◽  
Visual Analytics ◽  
Global Financial Crisis ◽  
Financial Advisors ◽  
Financial Decisions ◽  
Use Of Data ◽  
Retail Investors ◽  
Financial Decision ◽  
The Global Financial Crisis

The global financial world has been experiencing increasing complexities in the design and construct of financial instruments, wherein the average retail investors need to be well informed and aware of the risks about the evolution of financial products and financial system. The global financial crisis of 2008-2009 is evident to the fact that traditional methods of financial advisory involving the use of human intermediaries and financial advisors is not an infallible method to determine one's financial decision or risk management. Almost a decade since the crisis, the advancement of financial technology in the form of robo-advisors and the use of data and visual analytics have completely transformed the way the retail investors make their financial decisions and also in the sphere of risk management of these investors. The study qualitatively analyses the use of the use of analytics and robo-advisory in determining retail investors' financial decisions and risk management by doing a systematic and an exhaustive literature review on the latest and the past studies on the topic.

Debt and mental health: the role of psychiatrists

2007 ◽  
Vol 13 (3) ◽  
pp. 194-202 ◽  
Author(s):  
Chris Fitch ◽  
Robert Chaplin ◽  
Colin Trend ◽  
Sharon Collard
Keyword(s):  
Mental Health ◽  
Health Professionals ◽  
Mental Health Problems ◽  
Well Being ◽  
Health Problems ◽  
Mental Capacity ◽  
Basic Knowledge ◽  
Financial Decisions ◽  
The Impact

One in four people with mental health problems in Britain report debt or arrears, which is nearly three times the rate among individuals without similar conditions. Although health professionals commonly encounter debt among patients, some report that they lack basic knowledge to effectively intervene and that patient debt is often not acted on until a crisis emerges. Our aim in this article is to improve psychiatrists' knowledge and confidence in dealing with patient debt. We provide basic definitions of debt and problem debt; outline the impact that debt can have on patients' health, social and financial well-being; identify the stages and signs that a patient may be accruing problem debt; describe how psychiatrists should respond; and review the instruments available to assess patients' mental capacity to make financial decisions. We do not expect psychiatrists to become ‘debt experts’, but provide working knowledge for engaging more effectively with this problem.

scholarly journals Financial situation of insurance sector for example, a Stock – Exchange Company PZU

2014 ◽  
Vol 15 (1) ◽  
pp. 55-67 ◽  
Author(s):  
Paweł Trippner
Keyword(s):  
Economic Development ◽  
Financial Markets ◽  
Financial Institutions ◽  
Stock Exchange ◽  
Financial System ◽  
Insurance Companies ◽  
The European Union ◽  
Financial Systems ◽  
Insurance Sector ◽  
Financial Condition

Abstract The insurance system is a very important element of the financial system of a country. As institutions of public trust, insurance companies play a crucial role in the process of transforming savings into investments, which directly affects the country’s economic development. Maintaining the insurance sector in a good financial condition guarantees stability of the financial system and economic development of Poland. The article aims to present the essence of operations of insurance companies as financial institutions, present their role in the economy, and describe various methods of appraising their financial condition. In order to fulfil the above goals, a research hypothesis is put forward stating that the financial condition of the insurance sector in Poland deteriorated in the analysed period as a result of an adverse impact of turbulence in financial markets and problems in financial systems in the European Union countries.

scholarly journals Communicating Sustainable Responsible Investments as Financial Advisors: Engaging Private Investors with Strategic Communication

2021 ◽  
Vol 13 (6) ◽  
pp. 3161
Author(s):  
Nadine Strauß
Keyword(s):  
Financial Markets ◽  
Change Agents ◽  
Strategic Communication ◽  
Future Research ◽  
Financial Advisors ◽  
Responsible Investing ◽  
Private Investors ◽  
Communication Interventions ◽  
And Training

Although sustainable responsible investing (SRI) has increasingly become popular on the financial markets, the potential of raising capital from private investors for sustainable development has not been efficiently seized thus far. The lack of knowledge and training about SRI by financial advisors has often been identified as one of the main reasons for this investment gap. In order to accelerate the role of financial advisors as change agents for SRI, this study proposes several strategic communication interventions that advisors could employ in their advisory talks to raise more attention and engagement among private investors for SRI. The interventions proposed are oriented on the 5A model of SRI decision making by Herwig Pilaj and drawn from an interdisciplinary literature review on sustainability, communication, and attitudinal and behavioral change. The results provide a perspective and practical guide for financial advisors on how to effectively communicate SRI to private investors. Limitations and areas future research are discussed.

scholarly journals The role of the brain in financial decisions: A viewpoint on neuroeconomics

2018 ◽  
pp. 6
Author(s):  
Guillermo Mateu ◽  
Lucas Monzani ◽  
Roger Muñoz Navarro
Keyword(s):  
Decision Making ◽  
Financial Markets ◽  
Brain Activity ◽  
Financial Decisions ◽  
Main Research ◽  
Economic Decisions ◽  
Decision Making Processes ◽  
Financial Decision ◽  
The Brain

In this article, we explain the important role neuroscience plays in economic and financial environments. Hence, we present neuroeconomics as a way to describe how decision-making processes affect brain activity, focusing especially on the importance of economic and financial decisions. We answer some questions regarding the role of emotions in finance, the psychological factors present in financial markets, and how neuropsychological stimuli affect our economic decisions. We conclude by citing the main research in the area of neuroscience in financial decision-making processes, and highlight further research projects in these areas.

Does Financial Development Lead to Employment and Growth?

2020 ◽  
pp. 1-20
Author(s):  
Murat Gündüz ◽  
Yunus Özyıldırım
Keyword(s):  
Financial Markets ◽  
Financial Development ◽  
Financial Institutions ◽  
Financial Systems ◽  
G7 Countries ◽  
Causality Test ◽  
Fund Flow ◽  
Markets And Institutions ◽  
Causality Relationship ◽  
The Uk

Financial systems, which play a major role in the development of the economy, are primarily helping to fund flow and assist in capital increase. In this study, frequency domain causality test, which was developed by Geweke and Hosoya and developed by Breitung and Candelon, was used to analyze the causality relationship by short, medium, and long periods. This test, which provides periodical examination, was investigated to determine the effect of G7 countries on employment and growth of financial institutions and markets index used to calculate financial development index. Among the G7 countries, the development of financial markets and institutions has been affecting employment in Canada (short-medium), Germany (medium-long), Japan (short-medium-long), and the UK (medium-long); in addition, when the effects of economic growth on financial markets and institutions are investigated, Canada (short-medium), France (medium), Italy (medium-long), America (medium-long), Germany (medium-long), Japan (short-medium-long), and UK (short-medium-long) were determined by analysis.

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