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.

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 THE URGENCY OF FATWA IN THE LAW OF SHARIA ECONOMICS IN INDONESIA

2021 ◽  
Vol 20 (2) ◽  
pp. 201
Author(s):  
Elsy Renie
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Rapid Development ◽  
Economic Activities ◽  
Financial Products ◽  
The People ◽  
The Law

Fatwas of the National Sharia Council-Indonesian Ulama Council (DSN-MUI), in the field of sharia economics, has filled the legal vacuum related to the economic activities of the people. The increased of activity in the Mu'amalah area which is so fast requires a responsive fatwa. It can be seen from the rapid development of financial products for sharia financial institutions today. The legal strength of a fatwa is non-binding because it is not included in the constitution hierarchy in Indonesia which has caused debate for some people. But, several DSN-MUI fatwa have been transformed into part of national law, such as constitution No. 21 of 2008 concerning Banking, and some of which have also been absorbed into Bank Indonesia regulations, Syari'ah Financial Services Authority Regulation (OJK). This paper tries to analyze the role of fatwas in filling the legal vacuum in the development of the shari'ah economy in Indonesia and how the fatwas of the DSN-MUI can be transformed into national law. The author concludes that the role of DSN-MUI as the only institution that issued a fatwa related to the activities of shari'ah financial institutions in Indonesia is very important in the area of national legal politics.

scholarly journals Islamic banking

2021 ◽  
pp. 275-287
Author(s):  
Christian Castro
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Islamic Law ◽  
Islamic Banking ◽  
Investment Funds ◽  
Banking And Finance ◽  
Financial Products ◽  
The World ◽  
Globalized World ◽  
The U.S

In recent years the rise of Islamic banking has been one of the most important trends in the economic sphere, with an estimated 1.5 billion Muslims in the world, this arena has plenty of room for expansion. Conforming to Shariah (Islamic Law) puts a huge demand among Muslims looking for financial products and services that adhere to their beliefs. If it weren’t for the creation of such alter-natives to conventional banking and finance, Muslims would find it hard to participate in our globalized world without violating their religious principles. There are currently over 300 financial Institutions across the global sphere providing some type of Islamic financial product. According to some experts, the assets that are currently being managed under Shariah law, which range from investment to commercial banks and investment funds, are estimated to be no less than 300 billion. Other experts in the industry estimate the assets under mana-gement to be much larger. The FSA (Financial Services Authority), a regulator for financial services based out of London, estimates the total amount associated with Shariah banking to be as much as 500 billion. Even the U.S rating agency, S & P, estimates the sukuk (deed) market has reached over 75 billion and will likely be over 150 billion by the end of the decade. It used to be that Islamic fi-nancial products were more of a niche market but over time they are now considered mainstream, with many well-known interna-tional financial institutions battling to get a little piece of the pie.

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 Fintech Development: The Trends and Consequences for the Financial Services Market

2021 ◽  
Vol 8 (523) ◽  
pp. 173-183
Author(s):  
A. Y. Semenog ◽  
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Business Models ◽  
Service Providers ◽  
Security Systems ◽  
The Public ◽  
Financial Products ◽  
New Business ◽  
Cutting Out ◽  
Separate Product

The article is aimed at determining the consequences of digitalization and development of the fintech sector for the financial services market. According to the results of the analysis, a number of transformational trends for the financial services market are identified and characterized, among which the major ones: disintermediation in the financial services market – as a process of «cutting out» the classical financial institutions from the direct process of financial asset exchange; democratization of financial services processes – as a process of expanding the range of financial products; disaggregation of financial services – as a process of splitting financial services into separate financial products; increasing the inclusiveness of financial services, which provides better availability for different categories of customers; emergence of decentralized finances – as a concept and ecosystem of financial services, in which the provision of financial services and products is carried out directly without traditional financial intermediaries within the public open and decentralized blockchain network; development of automation and virtualization of financial services, which involves the widespread use of artificial intelligence technologies, algorithmic assessment of customer creditworthiness, autonomous risk management, automated trading on the exchange, the work of virtual assistants, robo-advisers and security systems against fraud; appearance of built-in financial products as part of services outside of the applications of financial institutions. The consequence of these trends is a reduction in the demand for financial services as a separate product of classical financial institutions; reducing the profits of traditional financial service providers; expansion of new business models of financial services provision in cooperation with technology companies; increasing the need to update the regulatory support of financial services processes, as well as the integration of mass financial products into the client offers of non-financial companies within a single ecosystem of products and services of a digital company.

scholarly journals Financial Inclusion and Saving Culture of Individuals in Uganda: A Case of Central Division, Kabale Municipality

2020 ◽  
Author(s):  
Isaac Musinguzi ◽  
Ayebare Richard ◽  
Elizabeth Muwanguzi
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Financial Inclusion ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Central Division ◽  
Financial Products ◽  
The People ◽  
The Relationship

Abstract The study was about Financial Inclusion and savings in Uganda. A case of central division, Kabale Municipality. Financial Inclusion seeks to overcome the friction that hinders markets from expanding access to, and use of formal financial products and services to a broad number of people. The Objectives of the study were; to examine how access to financial services affects deposits made to formal financial institutions, to find out the effect of usage of financial services on deposits made to formal financial institutions and; to investigate the relationship between quality of financial services available and deposits made to formal financial institutions. The study adopted a cross-sectional survey research design. A sample size of 390 respondents from a population of 15,092 people was used. Findings of the study established a direct positive relationship between Financial Inclusion and savings. The regression results showed that savings as measured by percentage of the respondent’s monthly income earnings that is saved, was influenced by Access to formal financial products and services (p=0.031), usage of formal financial products and services (p=0.015) and Quality of formal financial products and services (p=0.021). The independent variables in the regression model with positive coefficient showed a direct relationship with the dependent variable. Therefore, the study concluded that savings increases proportionately with more access to formal financial products, usage and increase in quality of formal financial products. The study also recommended that financial institutions should create financial products which are tailored to fit various individual needs. Again, these financial institutions should create many outlets through Agent Banking and this would prevent the people from saving in their homes and rather save with the financial institutions since savings do not benefit only the individuals but the economy as a whole.

Akselerasi Program Edukasi Keuangan Melalui Kolaborasi Bank Indonesia, Lembaga Keuangan, Dan Perguruan Tinggi

2015 ◽  
Vol 2 (2) ◽  
pp. 95-113
Author(s):  
I Wayan Nuka Lantara ◽  
Ni Ketut Rai Kartini
Keyword(s):  
Central Bank ◽  
Financial Institutions ◽  
Education Program ◽  
Financial Services ◽  
Energy Resource ◽  
Financial Education ◽  
Literacy Education ◽  
Positive Perception ◽  
Education Programs ◽  
Financial Products

This study aims to investigate the possibility of acceleration of financial education programs in Indonesia, through the collaboration of the three main parties, namely: (1) the regulator (Central Bank/Financial Services Authority); (2) the practitioner (financial institutions); and (3) the academia (universities). The study employed a qualitative approach to assess the opinions of the stakeholders in the Gadjah Mada University and related financial practitioners regarding accelerated implementation of financial education programs in Indonesia, which involved interviews with 24 informants who were considered to have knowledge about the financial education program in Indonesia. The study concluded that the respondents showed a positive perception on the importance and benefits of financial education programs in Indonesia. Other findings depicted that financial education programs need to be directed at the entire community with a wider coverage range. To expedite the process, a solid collaboration needs to be made between the three main parties: (1) Central Bank/ Financial Services Authority as regulator; (2) financial institutions (practitioners and providers of financial products and services); and (3) academia (universities). In terms of the implementation of the proposed program, the collaboration of all three parties need to be directed to the selected students who will firstly be prepared to be a financial educator (by giving knowledge, education and mentoring). Selected and well-trained students are expected to be effective educator who has energy resource availability in large quantities and a more mobile and larger coverage to accelerate financial education program in Indonesia.Keywords: literacy, education, financial inclution

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 Opinion on the new financial products issued by financial institutions - structured products

2017 ◽  
Vol 11 (1) ◽  
pp. 1-8 ◽  
Author(s):  
Laurentiu Paul Baranga
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Financial Institution ◽  
Economic Effect ◽  
Expected Return ◽  
Risk Transfer ◽  
Structured Products ◽  
Financial Products ◽  
International Importance ◽  
Structured Financial Products

Abstract Structured products are financial instruments issued by a financial institution where the amount claimed by the investor from the issuer depends on the variation of the price of the underlying instrument based on which the certificate is issued, namely: individual shares, share costs, stock indexes, currencies, commodities or combinations of these according to the prospectus. These products appeared with the development and diversification of financial services during the recent years, as well as due to the emergence of liquidity suppliers of international importance. The liquidity providers have developed on their own platforms a new range of derivatives which are different from the classical derivatives. These new derivatives, similar to contracts for difference (CFDs), have given to other institutions the possibility of transferring their risk more easily, regardless of the nature or type of the underlying asset. Thus, the financial institutions issuing structured financial products have found in liquidity providers the possibility of developing the CFDs required for their risk transfer operations. The issuers of structured products do not accept new risky positions when they issue certificates because they neutralize them through suitable risk transfer operations. The issuing financial institutions structure certificates from a variety of financial assets and/or commodities in order to adjust them to the various risk profiles of investors both in terms of expected return and in terms of the response to risk. Thus, products are issued that quickly respond to the trends of the financial or commodity markets. Investors in structured financial products benefit from the economic effect of a derivative but are exposed to financial risks that are more complex and more difficult to understand and at the same time depend on the reliability and stability of the contractual relationships between various financial institutions.

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.

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