scholarly journals The Development of Payment Services as an Example of Disintermediation in the Financial System

e-Finanse ◽  
2016 ◽  
Vol 12 (2) ◽  
pp. 60-73
Author(s):  
Agnieszka Alińska ◽  
Izabela Czepirska
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Supply And Demand ◽  
Financial System ◽  
Financial Sector ◽  
Financial Systems ◽  
Underlying Causes ◽  
Payment Services

Abstract The reasons for disintermediation in the financial systems can be found on both sides of supply and demand. This progressing phenomenon is a result of numerous changes in the post-crisis financial sector landscape. In this article, the authors analyse the underlying causes of the shift away from formal financial institutions in the area of financial services as well as present the Polish payment services market as an example of banks’ receding role in the traditional intermediation between market players.

scholarly journals Imperatives of development of post-socialist countries financial markets

2019 ◽  
pp. 80-88
Author(s):  
Olena Borzenko
Keyword(s):  
Financial Markets ◽  
Financial Services ◽  
World Economy ◽  
Financial Integration ◽  
Supply And Demand ◽  
Social Process ◽  
Financial Sector ◽  
Financial Systems ◽  
Global Science ◽  
The World

The relevance of the article in the analysis of the modern geopolitical space in which there are dramatic changes that qualitatively alter the disposition of post-socialist countries and regions of the world under the influence of scientific, technological, information, organizational and social process. The process of forming regulatory mechanisms for the functioning of the financial markets of the post-Soviet countries is linked to the transformation processes of global monetary and financial relations management. In modern conditions, the national financial market cannot be separated from the processes occurring in the world economy. In the last decades theoretical and practical problems of geoeconomics and global science have been investigated in the works of foreign scientists: L. Abalkin, M. Alle, U. Anderson, A. Anikina, J. Ackerloff, J. Arriga, D. Bell, W. Beck, Z. Brzezinski, I. Wallerstein, L. Galitz, J. Gelbraith, E. Giddens, M. Golovnin, P. Drucker, A. Kavkin, M. Castels, D. Keynes, L. Krasavina, V. Kruglov and others. It is observed that in the process of interaction of various factors of development in the world markets, an appropriate market conjuncture is formed, which reflects changes in specific conditions of market functioning and supply and demand, related to the dynamics of prices for goods and profits of firms and based on the cyclical development of the world economy, reflecting the nature of a market economy. Research methods are based on general scientific principles and fundamental principles of economic theory, theories of international economic relations and financial globalization, evolving in the face of geo-economic changes. The development of post-socialist countries is characterized by significant differences in the rates of economic growth and stabilization of monetary and financial systems, which is caused by: first, a significant stratification of economies in terms of development; second, the disintegration processes in mutual trade and more successful integration into the global trading environment due to the accelerated liberalization of the foreign trade sector compared to the financial sector; third, the incompleteness of financial sector reforms and the low level of development of financial services markets, respectively, the inefficiency of financial integration; fourth, the monetary and financial systems of the countries of the region remain vulnerable to the external effects of the crisis. The most powerful post-socialist countries (Russia, Kazakhstan, Ukraine, Azerbaijan) make more effective use of the benefits of globalization in the sphere of integration into the world economy.

scholarly journals The impact of economic development on the efficiency of the financial sector

Ekonomika ◽  
2021 ◽  
Vol 67 (3) ◽  
pp. 107-117
Author(s):  
Milica Cvetković ◽  
Maja Cogoljević ◽  
Marija Ranđelović
Keyword(s):  
Economic Development ◽  
Financial Markets ◽  
Market Economy ◽  
Financial Institutions ◽  
Financial System ◽  
Financial Sector ◽  
Transition Countries ◽  
Financial Systems ◽  
Production And Consumption ◽  
The Impact

A stable financial sector creates economic development. Speculative actions in financial markets cause disturbances and are an indicator of economic instability. The growth of a modern market economy more than two centuries ago is interconnected with the growth of the financial system. The averment that there is a connection between the growth of the financial and real sectors of the economy is as old as economics science. A developed financial system encourages competition, expands the market, and increases the efficiency of financial institutions. The depth and the breadth of financial markets are growing, which are transmission to the performance and structure of the economy. Through linking savings and investments, the financial system controls and manages the risks that are characteristic of financial operations and facilitates the interaction of production and consumption. The financial systems of transition countries are not sufficiently developed, so this paper aims to point out the interconnectedness and impact of the financial system on macroeconomic stability.

scholarly journals Functions of the indian mutual fund industry

2013 ◽  
Vol 1 (1) ◽  
pp. 32-38
Author(s):  
Saravanaselvi R ◽  
Thiruppathy K
Keyword(s):  
Mutual Funds ◽  
Financial Institutions ◽  
Mutual Fund ◽  
Financial Services ◽  
Financial System ◽  
Financial Sector ◽  
Financial Assets ◽  
Financial Investment ◽  
The Right ◽  
Real Assets

Investment is a commitment of funds in real assets or financial assets. Investment involves risk and gain. In the present dynamic global environment, e x p l o r i n g investment a v e n u e s a r e of g r e a t r e l e v a n c e .Investment skills developed over a period of time are considerably influenced by experience and spadework carried out to arrive at conclusions. The success of an investment acti vit y depends on the knowledge and ability of investors to invest, the right amount, in the right type of investment, at the right time. Real assets, being tangible material things, are less liquid than financial asset Compared to financial assets, returns on real assets are more difficult to measure accurately due to the absence of broad, ready, and active market. Financial assets available to individual investors are manifold, having different concomitant benefits to choose from. All financial investments are risky but the degree of risk and return differ from each other. An investor has to use his discretion, which is an art acquired by l earning a n d pra ct i cal experience. The knowledge of financial investment and the art of its management are the basic requirements for a successful investor Financial system comprises of financial institutions, services, markets and instruments,which are closely related and work in conjunction with each other. The litany of new financial institutions and instruments developed in recent years, with the ostensible objective of modernizing the financial sector, is impressively long; Mutual Funds, Discount and Finance House of India, Money Market Mutual Funds, Certificate of Deposit, Commercial Paper, Factoring and Treasury Bills. Financial services through the network of elements serve the needsofindividuals, institutionsand companies. It is through these elements, the functioning of the financial system is facilitated. Over the years, the financial services in India have undergone revolutionary changes and had become more sophisticated, in response to the varied needs of the economy. The process of financial sector reforms, economic liberalization and globalization of Indian Ca pi tal Market had generated and augmented the interest of the investors in equity. But, due to Inadequate knowledge of the capital market and lack of professional expertise, the common investors are still hesitant to invest their hard earned money in the corporate securities. The advent of mutual funds has helped in garnering the investible funds of this category of investors in a significant way.

scholarly journals Financial system and growth and economic development

VUZF Review ◽  
2021 ◽  
Vol 6 (2) ◽  
pp. 160-170
Author(s):  
Małgorzata Hala
Keyword(s):  
Economic Growth ◽  
Economic System ◽  
Financial Institutions ◽  
Financial System ◽  
Financial Sector ◽  
Real Sector ◽  
The Real ◽  
State And Local ◽  
The Impact

The aim of the article is to present the role of the financial system in economic growth and development. The first part presents the traditional understanding of the relationship between the economic system and economic growth. The second part presents the experience of financial crises and their impact on the conversation on the mutual relations between the financial sector and the real sector. The third part shows the role of the state in the financial system. The article describes the arrangement of interrelated financial institutions, financial markets and elements of the financial system infrastructure.  It shows what part of the economic system the financial system is, and whether it enables the provision of services allowing the circulation of purchasing power throughout the economy. The article presents the important role of the financial system, the role related to the transfer of capital from entities with savings to entities that need capital for investments. It shows the financial system as a set of logically related organizational forms, legal acts, financial institutions and other elements enabling entities to establish financial relations in the real sector and the financial sector, and this system forms the basis of activity for entities using money, enabling the conclusion of various economic transactions, in which money performs various functions. The article also presents the concept of a financial crisis as a situation in which there are rapid changes in the financial market, usually associated with insufficient liquidity or insolvency of banks or financial institutions, and as a result, a decrease in production or its deepening. The article also includes issues related to the impact of public authorities (state and local authorities) on the financial system in the economy.

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 The role and importance of internal control and internal audit in the prevention and identification of fraudulent actions in banks

Bankarstvo ◽  
2021 ◽  
Vol 50 (1) ◽  
pp. 66-89
Author(s):  
Snežana Knežević ◽  
Aleksandar Živković ◽  
Stefan Milojević
Keyword(s):  
Economic Development ◽  
Financial Institutions ◽  
Internal Control ◽  
Financial Services ◽  
Internal Audit ◽  
Financial Sector ◽  
Business Environment ◽  
Efficient Management ◽  
Range Of Functions

Modern banks have a specific role and a whole range of functions of paramount importance, as financial institutions for granting loans, creating loans, mobilizing savings and economic development. In the financial sector, there is a growing number of people who are using increasingly innovative and creative ways of targeting all perceived weaknesses in banks and credit approval systems. The persons committing fraud have become increasingly sophisticated, which means that measures to prevent fraud must be constantly developed to ensure that they are able to deal with the threat. The fight against fraud is crucial for financial services institutions. This article aims not only to briefly describe the role of internal control and internal audit in detecting possible fraud in banks, as profit-oriented organizations in today's complex and highly changing business environment, but also to point out the advantages they have in the more efficient management of bank activities.

scholarly journals Inequality and the Financial System— The Case of Germany

2015 ◽  
Vol 54 (4I-II) ◽  
pp. 585-608
Author(s):  
Daniel Detzer
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Financial Institutions ◽  
Financial System ◽  
Financial Sector ◽  
Varieties Of Capitalism ◽  
Personal Income ◽  
General Increase

Income inequality is rising in Germany. This is true for both functional as well as personal income distribution. After reunification in 1990, a general increase in inequality can be observed. This trend becomes particularly pronounced in the 2000s. In the literature on financialisation a link between the developments in the financial sector, the financing behaviour of firms, and income distribution is established. Also, in the varieties of capitalism literature a connection between the prevailing institutions, among them the financial institutions, and the tendency of an economy towards higher or lower inequality is made. This study attempts to investigate if changes in the financial sphere may have caused the higher inequality in Germany. There are different ways in which the financial sector could have contributed to the increased inequality. Growth of the financial sector or large increases in incomes paid in this sector could lead to higher inequality directly. Alternatively, different behaviour of financial institutions and new financial actors could affect distribution in the non-financial sector so that the financial sector indirectly affects inequality.

Introduction

2018 ◽  
Author(s):  
Mccormick Roger ◽  
Stears Chris
Keyword(s):  
Financial Markets ◽  
Financial Institutions ◽  
Financial Services ◽  
Financial System ◽  
The Other ◽  
Legal Risk ◽  
The People ◽  
European Banking ◽  
Prospective Risk

This introductory chapter first sets out the book’s purpose, which is to describe and explain legal and conduct risk, and suggest possible approaches to the management of these risks. Legal risk is defined as risk arising in the operation and practices of the financial markets. They are a part of the spectrum of risks that are inherent in the operations of banks and other financial institutions, affecting the lives of the people who work there and the customers who put their trust in them as well as, in more extreme cases, the financial system itself. On the other hand, the European Banking Authority defines conduct risk as ‘the current or prospective risk of losses to an institution arising from an inappropriate supply of financial services including cases of wilful or negligent misconduct’.

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.

Risk-Based AML/CFT Regulations for Effective Supervision

2021 ◽  
pp. 207-237 ◽  
Author(s):  
S. G. Sisira Dharmasri Jayasekara
Keyword(s):  
Money Laundering ◽  
Financial Institutions ◽  
Financial System ◽  
Financial Systems ◽  
Financing Of Terrorism ◽  
Global Threat ◽  
The Impact ◽  
Effective Supervision ◽  
Global Initiatives ◽  
Final Impact

Money laundering is a global threat that requires an urgent attention of policymakers to protect financial systems from criminals. A jurisdiction is required to develop a regime to control or mitigate the impact of crimes that have multi-dimensional impacts on global economies. Prevention of global crimes is a challenge not only to jurisdiction but also to the global standard setters. The final impact of these crimes hit the financial system and other regulated institutions. Anti-money laundering/combating the financing of terrorism (AML/CFT) supervision is an emerging area; therefore, a sound regime of AML/CFT supervision is essential to support global initiatives in this regard. This chapter discusses the implementation of a sound risk-based AML/CFT supervision of financial institutions as well as designated non-finance business and professions. This is important for AML/CFT regulators to strengthen the AML/CFT regime of a country.

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