Specifics of Interrelations between the Russian and European Financial Markets

2019 ◽  
Vol 12 (3) ◽  
pp. 134-143
Author(s):  
E. A. Zvonova
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Financial Regulation ◽  
Financial System ◽  
Reference Structure ◽  
The European Union ◽  
Developed Economies ◽  
Cross Border ◽  
Russian Economy ◽  
The Subject

The subject of the research is the state of interrelationship between the Russian and European financial markets in the context of the economic and financial sanctions imposed on Russia by the European Union. The relevance of the research stems from the strategic goal set by the President of the Russian Federation — to ensure the “breakthrough” of the Russian economy in order to enter the top five world’s developed economies by 2024–2025.The purpose of the paper was to develop a roadmap for the implementation of the mobilization model of cross-border flows of the Russian capital in the context of modern transformations of the global monetary and financial system. Based on the revealed and analyzed mainstream trends in the interaction of the Russian and European financial markets, a mobilization model of cross-border flows of the Russian capital under the modern conditions has been developed. The asymmetry in mutual exchanges between the Russian and European financial markets is revealed and the risks of all identified forms of asymmetry are defined. The reference structure of foreign assets of the Russian financial market is determined, priority directions for the correction of the structure of external assets and liabilities have been established, and the institutional structure of the monetary and financial regulation of the Russian financial market are specified.It is concluded that based on the roadmap for the model of cross-border flows of the Russian capital under conditions of modern transformations of the global monetary and financial system developed for the period 2019–2025, the Russian financial market is expected to be fairly stable over the next three years, which should be taken into account by the Bank of Russia in making decisions on the monetary policy and accumulation of international currency reserves.

scholarly journals The Political Economy of Financial Regulation in Advanced Industrial Democracies

2013 ◽  
Author(s):  
Richard Deeg ◽  
Walter James
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Financial Regulation ◽  
Financial System ◽  
Capital Controls ◽  
Market Regulation ◽  
Financial Market Regulation ◽  
Bretton Woods ◽  
Advanced Economies ◽  
Financial Regulatory

The regulation of finance is central to the growth and development of every economy. Financial regulation determines the overall character of the financial system, the relationship between borrowers and savers, the allocation of capital, and the macroeconomic performance of the economy. Financial market regulation is distinct from regulation of other sectors of the economy because of the essential infrastructural role of finance—all other sectors of advanced economies depend on the financial system. Despite its enormous importance, financial regulation normally has low political salience. Except in times of crisis, most voters—and therefore politicians—have relatively little interest in the matter. This can be attributed in part to the complex and technical nature of financial markets and regulation, which relatively few people understand well. Low political salience facilitates a regulatory process that is very heavily shaped by regulators (technocrats) and the industry they regulate, with only minor direction from elected political leaders. In the long history of capitalism, bank and financial system crises have been regular occurrences. Regulation, or regulatory failure, is often seen as a cause of crises, but regulatory change is also the response. Thus any given financial regulatory regime is never settled for long. After the Great Depression, advanced capitalist economies introduced highly restrictive financial regulatory regimes designed to minimize systemic risk from bank failures. In the postwar period, restrictive regulatory regimes were combined with capital controls that limited international movements of capital. The postwar Bretton Woods international monetary regime stabilized fixed exchange rates through such controls and, when necessary, lending by the International Monetary Fund (IMF) to countries that could not pay for their external debts. Starting with the collapse of the Bretton Woods regime in the early 1970s, all the advanced economies started liberalizing financial market regulation and removing capital controls as part of a broader shift toward a neoliberal economic philosophy. These deregulatory measures brought about a dramatic transformation of domestic financial systems and the reemergence of a dynamic and rapidly growing international financial market. Such dynamic and internationalized financial market was, in large part, the root cause of the early-21st-century financial crisis. The Great Financial Crisis of 2008 precipitated widespread review and revision of financial market regulations at both the domestic and international levels. These revisions include a shift from private self-regulation to state-driven regulation of financial markets, the centralization of regulation at the level of the European Union, and a closer cooperation between states in forging international regulatory standards. Nonetheless, despite the dramatic growth of the international financial market and transnational efforts to coordinate regulation, financial regulation remains overwhelmingly a domestic affair.

The Capital Market Authority Effectiveness in the Regulation of Financial Markets perspectives from the financial sector actors

2012 ◽  
Vol 02 (11) ◽  
pp. 15-24
Author(s):  
Charles Kombo Okioga
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Capital Markets ◽  
Capital Market ◽  
Financial Regulation ◽  
International Standards ◽  
Market Regulation ◽  
Financial Market Regulation ◽  
Market Participants ◽  
New Business

Capital Market Authority in Kenya is in a development phase in order to be effective in the regulation of the financial markets. The market participants and the regulators are increasingly adopting international standards in order to make the capital markets in sync with those of developed markets. New products are being introduced and new business lines are being established. The Capital Markets Authority (Regulator) is constantly reviewing existing regulations and recommending changes to regulate the market properly. Business lines and activities are being harmonized by market participants to provide a one stop solution in order to meet the financial and securities services needs of the investors. The convergence of business lines and activities of market intermediaries gives rise to the diversity of a firm’s business operations to meet multiplicity of regulations that its activities are subject to. The methodology used in this study was designed to examine the relationship between capital markets Authority effective regulation and the performance of the financial markets. The study used correlation design, the study population consisted of 30 employees in financial institutions regulated by Capital Markets Authority and 80 investors. The study found out that effective financial market regulation has a significant relationship with the financial market performance indicated by (r=0.571, p<0.01) and (r=0.716, p≤0.01, the study recommended a further research on the factors that hinder effective financial regulation by the Capital Markets Authority.

scholarly journals Private International Law and the African Economic Community: A Plea for Greater Attention

2006 ◽  
Vol 55 (4) ◽  
pp. 911-928 ◽  
Author(s):  
Richard Frimpong Oppong
Keyword(s):  
European Union ◽  
International Law ◽  
Economic Integration ◽  
Private International Law ◽  
The European Union ◽  
Economic Community ◽  
Cross Border ◽  
The Subject ◽  
National Boundaries ◽  
Free Movement Of Persons

Private international law deals with problems that arise when transactions or claims involve a foreign element. Such problems are most frequent in a setting that allows for the growth of international relationships, be they commercial or personal. Economic integration provides such a setting and allows for the free movement of persons, goods, services and capital across national boundaries. The facilitation of factor mobility resulting from economic integration and the concomitant growth in international relationships results in problems which call for resolution using the tools of private international law. An economic community cannot function solely on the basis of economic rules; attention must also be paid to the rules for settling cross-border disputes. Consequently, considerable attention is given to the subject within the European Union (EU)1 and other economic communities.2

scholarly journals The Central Bank as a Financial Mega-regulator (Russian Experience)

2019 ◽  
pp. 317-326
Author(s):  
Aleksander Kostiukov
Keyword(s):  
Developing Countries ◽  
Central Bank ◽  
Financial Markets ◽  
Financial Market ◽  
Financial Regulation ◽  
Regulation Of Financial Markets

This contribution deals with the models of institutional regulation of financial markets. The main aim of the contribution is to confirm or disprove the hypothesis that the model of the Central Bank as a mega-regulator of financial markets is not optimal for the developing countries and particularly for Russia. The author highlights main arguments pro et contra Central Bank as a financial mega-regulator. The author supposes that before and during financial regulation reforms, it is necessary to answer the question: Is the financial market in the country sufficiently developed and extensive to abandon the functional (sectoral) regulation and move to mega-regulation? For Russia the answer is negative.

scholarly journals Appraisal of Financial Situation of the Polish Banking Sector from 2008 to 2012

Management ◽  
2013 ◽  
Vol 17 (2) ◽  
pp. 177-189
Author(s):  
Paweł Trippner
Keyword(s):  
Economic Development ◽  
Financial Markets ◽  
Financial Institutions ◽  
Banking Sector ◽  
Banking System ◽  
Financial System ◽  
The European Union ◽  
Financial Situation ◽  
Financial Condition ◽  
European Union Countries

Summary Appraisal of Financial Situation of the Polish Banking Sector from 2008 to 2012 The banking system is a very important element of the financial system of a country. As institutions of public trust, banks play a crucial role in the process of transforming savings into investments, which directly affects the country’s economic development. Maintaining the banking 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 banks 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 banking sector in Poland deteriorated in the analysed period as a result of an adverse impact of turbulence in financial markets and problems in banking sectors in the European Union countries.

scholarly journals Regulacija financijskog tržišta prije i nakon svjetske krize

2017 ◽  
Vol 5 (1) ◽  
Author(s):  
Anita Radman Peša ◽  
Vanja Zubak ◽  
Duje Mitrović
Keyword(s):  
Risk Management ◽  
Financial Markets ◽  
Interest Rates ◽  
Financial Market ◽  
Financial Risk ◽  
Banking Sector ◽  
Financial Regulation ◽  
Banking System ◽  
Financial Risk Management ◽  
Macroeconomic Stability

The banking sector in the global economic system is an area of great impact on the preservation of macroeconomic stability. As it turned out, and during the recent economic crisis, whose consequences are still felt in many countries, the collapse of the financial markets has farreaching effects on all of the national financial markets. The aim of this paper is to analyze the existing regulation of the financial markets and its (lack of) performance in the current financial risk management in order to preserve macroeconomic stability, and provide a secure and stable banking system. The purpose of the study was to present financial regulation before the crisis of 2008 / 2009, and to compare it with the regulations issued after the global crisis of 2008 / 2009 in order to conclusion whether it is cosmetic or real changes of regulating the financial system, and whether existing regulation in the future successfully prevent minor and major disruptions of the financial markets. Croatian financial market is especially analysed in the case of manipulation using the benchmark interest rates.

scholarly journals Russian Financial Market: Is there Potential for Stimulating Economic Growth?

Vestnik NSUEM ◽  
2020 ◽  
pp. 86-104
Author(s):  
A. V. Novikov ◽  
I. Ya. Novikova
Keyword(s):  
Economic Growth ◽  
Financial Markets ◽  
Market Economy ◽  
Financial Market ◽  
Market Segmentation ◽  
Point Of View ◽  
Gdp Growth ◽  
Investment Incentives ◽  
Russian Economy ◽  
Instrumental Approaches

Russia has passed the path of forming a market economy, which was accompanied by a multidirectional dynamics of GDP growth rates. The article considers the financial market as a factor of stimulating economic growth. Four stages of development of the market economy of Russia are justified. Starting from 2020, the fifth stage of economic growth based on the development of innovative technologies, digitalization of the economy. The features of these stages are analyzed from the point of view of investment incentives for development. Institutional and instrumental approaches to financial market segmentation are highlighted, and the features of implementing these approaches at each stage of the Russian economy development are considered. The formation of the financial market considered from the standpoint of the analysis of indicators, revealing the state of the financial markets: depth, access, stability and efficiency of the financial market. Measures for the development of the financial market are proposed.

The Restructuring of the Financial System in the 21st century

2019 ◽  
pp. 30-51
Author(s):  
Elisabeth T. Pereira
Keyword(s):  
Financial Markets ◽  
21St Century ◽  
Global Economy ◽  
Financial System ◽  
Developed Economies ◽  
Financial Innovations ◽  
Structure Changes ◽  
Current Century ◽  
Technology Market ◽  
Main Determinants

The financial system on the first decades of the 21st century followed the trend of the last decades of the 20th century with corporate restructuring and international financial markets integration and delocalization being oriented by profits and mergers and acquisitions. The global economy and financial structure changes, in the current century, derived from financial innovations, market deregulation, globalization, technology, market structure changes, regulatory reforms, and (re)formulation of central banks' monetary policy. Currently, the financial system is interconnected, interactive, interdependent, and became over-leveraged. The present chapter focuses on the analysis of the evolution of the financial system and the main determinants of global financial markets restructuring on last decades to explain the relevant changes verified in the financial system in the 21st century. After a literature review, an evaluative and descriptive macro analysis of the financial system is presented to study the process of restructuring of the financial system in the main developed economies.

scholarly journals Eliciting Substance from ‘Hot Air’: Financial Market Responses to EU Summit Decisions on European Defense

2010 ◽  
Vol 64 (2) ◽  
pp. 199-223 ◽  
Author(s):  
Michael M. Bechtel ◽  
Gerald Schneider
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Empirical Support ◽  
Defense Industry ◽  
European Council ◽  
The European Union ◽  
European Security ◽  
Market Responses ◽  
Hot Air ◽  
Security Affairs

AbstractThe results of deliberations in multilateral fora are often considered ineffective. Decision making in the European Union (EU) and in particular its key intergovernmental body, the European Council, poses no exception. Especially in the domain of EU foreign and security affairs, the unanimity requirement governing this institution allegedly allows nationalist governments to torpedo any attempt to build up a credible European defense force and a unified foreign policy stance. In this article, we take issue with the claim that multilateral summits merely result in “hot air” by looking at whether and how decisions made during EU summit meetings affect the European defense industry. We argue that investors react positively to a successful strengthening of Europe's military component—a vital part of the intensified cooperation within the European Security and Defense Policy (ESDP)—since such decisions increase the demand for military products and raise the expected profits in the European defense industry. Our findings lend empirical support to the view that financial markets indeed evaluate the substance of European Council meetings and react positively to those summit decisions that consolidate EU military capabilities and the ESDP. Each of the substantial council decisions studied increased the value of the European defense sector by about 4 billion euros on average. This shows that multilateral decisions can have considerable economic and financial repercussions.

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.

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