scholarly journals Cellular Companies as a Model of a Mechanism for Reducing Sanctions Risks for Business

2021 ◽  
Vol 13 (4) ◽  
pp. 67-74
Author(s):  
Viktor S. Utkin ◽  
◽  
Yury V. Kuznetsov ◽  
Keyword(s):  
International Relations ◽  
Insurance Industry ◽  
Financial Innovation ◽  
Financial Instruments ◽  
Foreseeable Future ◽  
Legal Regime ◽  
Legal Form ◽  
Financial Innovations ◽  
Regulatory Pressure ◽  
External Actors

Economic sanctions, including financial ones, will be increasingly used in the practice of international relations in the foreseeable future as an instrument of pressure of some states or interstate associations on others. This creates incentives for the search and implementation of financial innovations aimed at reducing sanctions risks for businesses. The article demonstrates that the impetus for the creation of some important modern financial instruments and infrastructures was the attempts of states to legislatively or administratively regulate the market. The case of sanctions is likely to be no exception. One of the possible models for minimizing sanctions pressure on businesses can be the legal form of a protected cell company. It have been a financial innovation that originally emerged in the captive insurance industry and its objective was, among other things, to reduce the regulatory burden. Structures similar to protected cellular companies can potentially create the possibility to make the operations of national businesses of target countries opaque for external actors (financial regulators and monitoring agencies) that enforce sanctions. In the same time this model preserves the control of the target country’s own jurisdiction and transparency of business for its regulators. In essence, it creates a kind quasi-offshore legal regime, which, unlike traditional internal offshore zones, is designed to mitigate not internal, but external regulatory pressure.

The Rise and Fall of Great Powers

2017 ◽  
Author(s):  
Geir Lundestad
Keyword(s):  
United States ◽  
International Relations ◽  
Nuclear Weapons ◽  
The United States ◽  
Great Powers ◽  
Foreseeable Future ◽  
The West ◽  
Economic Modernization

There are no laws in history. Realists, liberals, and others are both right and wrong. Although no one can be certain that military incidents may not happen, for the foreseeable future China and the United States are unlikely to favor major war. They have cooperated well for almost four decades now. China is likely to continue to focus on its economic modernization. It has far to go to measure up to the West. The American-Chinese economies are still complementary. A conflict with the United States or even with China’s neighbors would have damaging repercussions for China’s economic goals. The United States is so strong that it would make little sense for China to take it on militarily. There are also other deterrents against war, from nuclear weapons to emerging norms about international relations. It is anybody’s guess what will happen after the next few decades. History indicates anything is possible.

Enterprise risk management and Solvency II: the system of governance and the Own Risk and Solvency Assessment

2020 ◽  
Vol 21 (4) ◽  
pp. 317-332 ◽  
Author(s):  
Pablo Durán Santomil ◽  
Luis Otero González
Keyword(s):  
Risk Management ◽  
Insurance Industry ◽  
Solvency Ii ◽  
Enterprise Risk Management ◽  
Insurance Companies ◽  
Legal Form ◽  
Content Type ◽  
Enterprise Risk ◽  
Solvency Assessment

Purpose The purpose of this paper is to analyze how enterprise risk management (ERM), the system of governance and the Own Risk and Solvency Assessment (ORSA) have been boosted with the entry of Solvency II. Design/methodology/approach For this analysis, the authors have undertaken a survey of chief risk officers (CROs) working in Spanish insurance companies. Findings The results show that Solvency II has definitely promoted ERM in the European insurance industry and improved the system of governance of the insurance companies, and that the perceived value of the ORSA for the companies is higher than the cost. It is clear that the quality of ERM implemented by companies is higher in those that face more complex risks and with greater interdependencies – that is, larger companies, foreign insurers and insurers with several lines of business – but is unaffected by the legal form of the entity (mutual/corporation). Originality/value This study conducts primary research with surveys of CROs and develops a measure of the quality of ERM implemented by insurance companies.

scholarly journals Analysing the Sway of Cash Instruments in the Indian Financial Market Context

2021 ◽  
Vol 10 (06) ◽  
pp. 01-04
Author(s):  
Bhumi Mehta
Keyword(s):  
Financial Market ◽  
Financial Instruments ◽  
Financial Instrument ◽  
Legal Documents ◽  
Financial Innovations ◽  
Monetary Value ◽  
Financial Products ◽  
Derivative Instruments ◽  
Different Types ◽  
Bill Of Exchange

There are basically four types of financial instruments viz. a bank deposit, a bill of exchange, a bond, and equity. As a result of a steady stream of financial innovations in today’s time, the market landscape is far less sparse-and far more complex to evaluate. Financial instruments are termed as the financial products which are tradable as packages of capital, each having their own unique characteristics and structure. The wide collection of financial instruments in today's marketplace allows for the efficient flow of capital amongst the world's investors. Financial instruments are legal documents that embody monetary value. There are a number of different types of documents that are properly identified as a financial instrument. There are different types of financial instrument, like cash instruments or derivative instruments.

scholarly journals Financing innovative development of the African economies: the role of digitalization and financial innovations

2020 ◽  
Vol 28 (3) ◽  
pp. 429-439
Author(s):  
Tijani Forgor Alhassan ◽  
Ahou Julie Kouadio ◽  
Dadson Etse Gomado
Keyword(s):  
Financial Development ◽  
Financial Services ◽  
Positive Relationship ◽  
Financial Innovation ◽  
Sub Saharan Africa ◽  
Innovative Development ◽  
Mobile Banking ◽  
Data Set ◽  
Financial Innovations ◽  
Sub Saharan

The article examines the relationship between financial innovation (mobile banking) variables in sub-Saharan Africa. Mobile banking (also known as mobile money) is one of the main financial innovations in the sub-Saharan region, and it is a system through which non-bank residents (residents without bank accounts, etc.) receive financial services. The overall importance of financial innovation in today’s digital and knowledge-based economy, and indeed, innovative development, inspired this study. Using a partial linear regression model, we analysed the International Monetary Fund data set, the World Bank’s national economic data, and mobile banking data from GSMA for the period from 2011 to 2017. A negative correlation was found between these variables and growth, as well as financial development, but a positive relationship was established between financial development and economic development. This positive relationship re-confirms the argument that financial development affects economic growth. It is recommended that policy makers develop and implement the necessary policy tools that can promote this form of financial innovation, and thus link its benefits to the national economy in general.

scholarly journals The influence of weapons of mass destruction on international security in the second decade of the 21st century

2019 ◽  
Vol 26 ◽  
pp. 109-141
Author(s):  
Włodzimierz Wątor
Keyword(s):  
International Relations ◽  
International Security ◽  
Weapons Of Mass Destruction ◽  
Foreseeable Future ◽  
International Organisations ◽  
Mass Destruction ◽  
Special Significance ◽  
Force Factor ◽  
Precise Estimation

The article outlines reasons for the significant increase of the hazard posed by weapons of mass destruction in the current decade. Despite the international community’s efforts made throughout the years, it has not been possible to eliminate them, significantly lower their arsenal or prevent their building or transfer. What has increased is the importance of weapons of mass destruction, especially nuclear ones, as a force factor in international relations. This tendency will probably continue in the foreseeable future. Therefore, the article focuses on explaining the mechanisms of this process and its connections with numerous events and facts influencing international security. Special significance is ascribed to a precise estimation of the risk posed by weapons of mass destruction and determination of its hierarchy. Moreover, the article presents the forms and methods of the activities undertaken by countries and international organisations regarding the prevention of proliferation (via disarmament treaties and informal forums) and assesses their effectiveness.

scholarly journals Anti-terrorism Legal Regime of Pakistan and the Global Paradigm of Security: A Genealogical and Comparative Analysis

2016 ◽  
Vol 2 (1) ◽  
pp. 4-35
Author(s):  
Syed Sami Raza
Keyword(s):  
Comparative Analysis ◽  
19Th Century ◽  
Legal Regime ◽  
Legal Form ◽  
Early 19Th Century ◽  
Post Colonial ◽  
Legal Regimes ◽  
Indefinite Detention ◽  
Anglo American

Pakistan is often criticized for its anti-terrorism legal regime—which institutionalizes preventive indefinite detention, special courts, and speedy trials. Pakistani officials, on their part, rebut this criticism by pointing to the Anglo-American anti-terrorism legal regimes, and generally to “the global paradigm of security.” Interestingly, should we trace the genealogy of the anti-terrorism legal regime of Pakistan, we find rich historical-juridical linkages between the Pakistani and Anglo-American regimes. These linkages converge on, or at least begin from, the British law of high treason. This law was adopted in certain colonial regulations in the early 19th century. In this article I demonstrate how the legal form and substance of the high treason law and of certain other colonial regulations traveled through colonial and post-colonial security laws, such that they have recently come to converge with the global paradigm of security.

Part I General Aspects, 5 The Disclosure Paradigm: Conventional Understandings and Modern Divergences

2020 ◽  
Author(s):  
Hu Henry T C
Keyword(s):  
United States ◽  
Technological Innovation ◽  
Financial Innovation ◽  
The United States ◽  
Securities And Exchange Commission ◽  
Financial Innovations ◽  
The Core ◽  
Corporate Governance Mechanisms ◽  
Core Mission ◽  
General Aspects

This chapter focuses on the United States' (US) disclosure paradigm. It explains that the disclosure paradigm contemplates a unique regulatory role for the Securities and Exchange Commission (SEC). Here, the fulfilment of its core mission is essential not only to investor protection and market efficiency, but to a wide variety of transparency-dependent corporate governance mechanisms. Financial innovation is contributing to a ‘too complex to depict’ problem that brings into question the sufficiency of the core approach to information that the SEC has used since its creation. Moreover, particular financial innovations pose product-specific challenges to the fulfilment of the SEC's mission. Additionally, changing conceptions of the ends to be achieved by public disclosure, within the SEC disclosure system itself and pursuant to a new disclosure system driven by regulators with far different mindsets, raise new issues. It is now demonstrable that the new modes of information and the alternative data made possible by technological innovation can help address some of the disclosure challenges posed by financial innovation. At the same time, these new modes and alternative data introduce regulatory complexities. The chapter thus concludes that modern divergences are making life interesting for regulators, practitioners, and academics alike.

Statistical and bibliometric analysis of financial innovation

2019 ◽  
Vol 38 (2) ◽  
pp. 308-319
Author(s):  
Ting-Hsuan Chen ◽  
Jin-Lung Peng
Keyword(s):  
Commercial Banks ◽  
Policy Making ◽  
Design Methodology ◽  
Liquidity Risk ◽  
Financial Innovation ◽  
Bank Performance ◽  
Content Type ◽  
Financial Innovations ◽  
Financial News ◽  
Financial Technology

Purpose The purpose of this paper is to review and analyze the characteristics of the literature related to financial innovation, because financial technology (fintech) has been appropriately applied in academic circles as well as in the policy-making arena. The authors further estimate the implications of financial innovations for bank performance and liquidity risk. Design/methodology/approach The authors use a sample of commercial banks operating in Taiwan over the period 2010–2017 and utilize three proxies for financial innovation including R&D expenditures, financial patents (i.e. innovation applications) and financial news such as that concerning fintech (i.e. innovation intentions). Findings The effects of financial innovation on bank performance are mixed, with too much of R&D expenditures having the worst bank performance, whereas innovation intentions benefit their performance. The paper concludes that financial innovation does increase banks’ liquidity risk, thus supporting the innovation-fragility hypothesis. Originality/value It is an important issue in academic circles as well as in the policy-making arena to ensure that financial innovation has been appropriately applied.

scholarly journals Barriers to Financial Innovation—Corporate Finance Perspective

2020 ◽  
Vol 13 (11) ◽  
pp. 273
Author(s):  
Joanna Błach
Keyword(s):  
Corporate Finance ◽  
Financial Innovation ◽  
Extensive Literature ◽  
Financial Strategy ◽  
Ongoing Debate ◽  
Endogenous Factors ◽  
Individual Level ◽  
Financial Innovations ◽  
Complex Construction ◽  
Nonfinancial Firms

This paper addresses the application of financial innovations from the corporate finance perspective. The objective is to identify and prioritize the main types of barriers to the implementation of financial innovations by nonfinancial firms. The motivation behind the study lies in the importance of financial innovations for the firms’ ability to create value. As proven by the extensive literature review, comprehensive studies on financial innovation applications by nonfinancial firms are relatively rare. To cover this cognitive gap, the theoretical argumentation followed by the discussion of results of the empirical research are presented in this paper. The paper provides the results of two-stage survey research, aiming to find opinions of financial managers (end-users) and experts (creators of innovation) on the main barriers to financial innovations in Poland. According to managers, the most important are exogenous barriers, including: (1) Unclear tax and accounting regulations, (2) complex construction of financial innovations, and (3) transaction costs related to their application. On the other side, the experts from financial institutions recognized the greater importance of endogenous factors such as: (1) Lack of sufficient knowledge about financial innovations and (2) the reluctance to change observable in many firms. This study contributes to the ongoing debate on financial innovations by adding the perspective of corporate financial strategy. It also offers insights into the potential actions (at the institutional and individual level) aiming to reduce the barriers and support the implementation of financial innovations by nonfinancial firms.

Risking value theory in the political economy of finance and nature

2016 ◽  
Vol 42 (3) ◽  
pp. 330-349 ◽  
Author(s):  
Brett Christophers
Keyword(s):  
Climate Change ◽  
Political Economy ◽  
Financial Innovation ◽  
Value Theory ◽  
The Political ◽  
Index Insurance ◽  
Climate Finance ◽  
Financial Instruments ◽  
Catastrophe Bonds ◽  
Economy Of Nature

Responding to calls for geographers to re-engage value theory in examining the political economy of nature, this article questions the capacity of such theory to grasp nature’s growing representation, valuation and exchange through financial instruments ranging from catastrophe bonds to carbon credits and from green bonds to index insurance. Drawing on and extending recent debates in political economy, it submits that understanding the contemporary nexus of climate change and financial innovation requires incorporating risk into value theory – it requires, that is, ‘risking’ value theory. Parsing the literature on climate finance, the article demonstrates how such risking might be achieved.

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