The Institutional Financial Market’s Infrastructure: Theoretical and Practical Aspects

Annotation. Introduction. The relevance of the study is conditioned to the significant influence of modern financial markets on the real economy and social development as a whole. Purpose. The purpose of the article is to generalize the theoretical provisions for determining the model of the financial market, highlighting the elements of the financial market infrastructure, analysis of the development of the domestic financial market. Results. We have done the characteristic of the current stage of the financial system’s and financial market’s development. Denotes the inhomogeneity of the existing theoretical approaches to the definition of a financial market and its structural classification, with emphasis on the importance of the institutional component. We have done the analysis of the different models (types) of the financial system and financial markets and the factors determining the use of these models in different countries. Background of selection of so-called mixed model of the financial system in Ukraine are systematized, when equal opportunities and rights, with no serious legislative restrictions and financial transactions are carried out banking and non-banking financial institutions. The current stage of development of the domestic financial market is characterized by a dominant share of universal banks, but the industry non-bank financial institutions has also received its development, which generally creates a competitive environment for all market participants. At the same time, certain non-bank credit institutions, recently appeared on the market and very dynamic, require special attention from the mega-regulator. Conclusions. In this regard, we have done the conclusion about the need to improve legislation in the field of financial markets and to ensure an acceptable level of control. Keywords: financial market; financial system; banking and non-banking financial institutions.

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Financial Market Infrastructures

Analyzing the Economics of Financial Market Infrastructures - Advances in Finance, Accounting, and Economics ◽

10.4018/978-1-4666-8745-5.ch001 ◽

2016 ◽

pp. 1-19

Author(s):

Martin Diehl

Keyword(s):

Financial Markets ◽

Financial Market ◽

Financial System ◽

Relevant Information ◽

Payment Systems ◽

Worst Case ◽

Analytical Importance ◽

The Stability ◽

Definition Of ◽

Market Infrastructure

Like a human being's backbone, well-functioning financial market infrastructures contribute to the stability of the financial system. They enable fast and smooth movements, channel relevant information, protect the channels for transmission and reduce risk. Problems in financial market infrastructures may lead to dysfunctions of financial markets, a lack of options for transaction and, therefore, to limited movability, misleading information or disturbed information channels and in the worst case to systemic risk. The chapter explains the role of financial market infrastructure within the wider definition of a financial system. Based on the historical emergence of payment systems, central clearing and central securities depositories, the special advantage of financial market infrastructures for the productivity of intermediaries, for the efficiency of financial markets and for the welfare of an economy is explained. The chapter shows the economic and analytical importance and specificity of financial market infrastructures.

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КОНЦЕПТУАЛЬНІ ПОЛОЖЕННЯ РОЗГЛЯДУ СУТНОСТІ ДЕФІНІЦІЙ «ІННОВАЦІЯ», «ФІНАНСОВА ІННОВАЦІЯ» ТА «КРЕДИТНА ІННОВАЦІЯ»

PROBLEMS AND PROSPECTS OF ECONOMIC AND MANAGEMENT ◽

10.25140/2411-5215-2019-4(20)-320-333 ◽

2019 ◽

pp. 320-333

Author(s):

Maksym Dubyna ◽

Iryna Sadchykova ◽

Natalia Chiipesh

Keyword(s):

Financial Markets ◽

Financial Institutions ◽

Financial Innovation ◽

Financial Sector ◽

Qualitative Change ◽

Theoretical Approaches ◽

Definition Of ◽

Similarity And Difference ◽

Credit Institutions

Within the article, theoretical approaches to the definition of "innovation", "financial innovation" and "credit innovation" are studied, their similarity and difference are revealed. Peculiarities of the interpretation of the term "innovation" proposed by different researchers are revealed, and their interpretations are submitted. Theoretical aspects of the essence of financial inno-vations used in the financial sector are researched, and their characteristics is given. Financial innovation is defined as a cer-tain innovation or qualitative change in the activities of financial markets and financial institutions. The essence of "credit inno-vations" is analyzed, and the main strategies for their implementation in credit institutions are presented.

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RISK ECONOMY

Экономическая наука сегодня ◽

10.21122/2309-6667-2018-8-16-55 ◽

2018 ◽

pp. 16-55

Author(s):

S. SOLODOVNICOV.

Keyword(s):

High Tech ◽

Negative Consequences ◽

Theoretical Substantiation ◽

Economic Concept ◽

Stage Of Development ◽

Global Catastrophe ◽

Knowledge Intensive ◽

Definition Of ◽

Political Economic ◽

Current Stage

The article is devoted to the theoretical substantiation of a new social paradigm – risk economy. The current stage of society development and the economy is characterized by a critical increase in financial, technological and technological, political and economic, geo-economic and other uncertainties. It is impossible to understand their ontological nature and reveal the phenomenological specificity without a meaningful definition of the current stage of development of the economic system of society. The article consistently revealed the characteristics of current society, which allowed the author to present a new political and economic concept that characterizes the current stage of development of society and the economy – the risk economy. The risk economy is an economy of high-tech and knowledge-intensive industries, characterized by the highest degree of political, economic, technological, financial and environmental uncertainties and risks. These risks are becoming comprehensive, many of them are in principle unpredictable, and their possible negative consequences could lead Humanity to a global catastrophe. Understanding the nature of risk economics is critically important for developing effective political and economic mechanisms to counter these risks.

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FinTech and Its Disruption to Financial Institutions

Organizational Transformation and Managing Innovation in the Fourth Industrial Revolution - Advances in Logistics, Operations, and Management Science ◽

10.4018/978-1-5225-7074-5.ch006 ◽

2019 ◽

pp. 104-124 ◽

Cited By ~ 6

Author(s):

Chen Liu

Keyword(s):

Financial Institutions ◽

New Technology ◽

Financial System ◽

The People ◽

Technology Advancement ◽

Current Stage

This chapter studies how FinTech is transforming traditional financial institutions (FIs). This chapter achieves the four related goals. First, it discusses the current stage of FinTech development in different areas such as crowdfunding, payment, blockchain, and cryptocurrency. Second, it examines how each FinTech development affects traditional FIs, in both positive and negative ways. Third, it explores how FIs are currently managing FinTech innovations. It also suggests ways through which these institutions could best utilize FinTech to better serve their customers and eventually optimize the overall financial system. Finally, following the book's focus on man's role at the center of technology advancement, this chapter discusses whether FIs' customers' needs are still placed at the center of FIs' incentives to adapt new technology, and if not, how can we focus back to the people that the financial system ultimately serves.

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FinTech and Its Disruption to Financial Institutions

Research Anthology on Blockchain Technology in Business, Healthcare, Education, and Government ◽

10.4018/978-1-7998-5351-0.ch091 ◽

2021 ◽

pp. 1679-1699

Author(s):

Chen Liu

Keyword(s):

Financial Institutions ◽

New Technology ◽

Financial System ◽

The People ◽

Technology Advancement ◽

Current Stage

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Financial Development and Tax Revenue: How Catalytic Are Political Development and Corruption?

International Journal of Economics and Finance ◽

10.5539/ijef.v10n8p92 ◽

2018 ◽

Vol 10 (8) ◽

pp. 92 ◽

Cited By ~ 1

Author(s):

John Bosco Nnyanzi ◽

John Mayanja Bbale ◽

Richard Sendi

Keyword(s):

Financial Markets ◽

Financial Development ◽

Financial Market ◽

Financial Institutions ◽

Low Income ◽

Political Development ◽

Tax Revenue ◽

Tax Revenues ◽

The Impact ◽

Cent Change

Increasing domestic revenue mobilization remains a challenge for many governments, particularly in low-income countries. Using a sample of East African countries, the study sets off to investigate the impact of financial development from a multi-dimensional perspective on tax revenues for the period 1990 to 2014, and how political development and the control of corruption would enhance the observed nexus. The dynamic panel results from the system GMM estimation approach indicate a significant role of financial development overall and the financial institutions and financial markets in particular. A disaggregation of the duo suggests that it is the depth of financial institutions that greatly matters for tax revenue, with a one per cent change expected to yield about 0.26 per cent change in tax collections. It is then followed by their level of accessibility, financial market depth and efficiency. We fail to find significant evidence in support of financial market access and financial institutions efficiency although the possibility for the latter seems indismissible. Further evidence points to the catalytic nature of a good institutional and political environment in pursuit of higher tax-GDP ratio via financial development. Policies to promote the depth and accessibility of financial institutions as well the depth and efficiency of financial markets in East Africa alongside well-focused anti-corruption programs and democratic governance are likely to yield better fiscal outcomes in terms of domestic tax revenues critically needed to achieve the United Nations Sustainable Development Goals. We also confirm the positive role played by the lagged tax revenue, per capita GDP, trade openness, debt-to-GDP ratio and population density in the tax effort.

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Reforming China's Financial Markets

Current History ◽

10.1525/curh.2001.100.647.291 ◽

2001 ◽

Vol 100 (647) ◽

pp. 291-294

Author(s):

Stephen Thomas ◽

Ji Chen

Keyword(s):

Economic Development ◽

Financial Markets ◽

Financial Institutions ◽

Financial System ◽

Market Reforms ◽

Major Stage

China has begun another major stage of its market reforms in its financial system. These reforms will continue to move China gradually but inevitably toward modern financial institutions that will provide an additional stimulus to China's overall economic development.

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L’economia islamica: alternativa apparente o reale?

Oriente Moderno ◽

10.1163/22138617-12340155 ◽

2017 ◽

Vol 97 (2) ◽

pp. 270-290

Author(s):

Valentino Cattelan

Keyword(s):

Social Justice ◽

Property Rights ◽

Financial Market ◽

Risk Sharing ◽

Financial System ◽

Real Economy ◽

Scientific Paradigm ◽

Moral Principles ◽

The Future ◽

Economic Thinking

Abstract This article deals with the nature of Islamic economics as a scientific paradigm which claims to be alternative to conventional economic thinking. To critically evaluate this claim, the work investigates the peculiar religious and moral principles that shape the idea of social justice in Islam. Subsequently, it outlines how Islamic economics derives from these principles a specific conceptualization of property rights and commercial relations that embraces parameters of (1) primacy of real economy; (2) transactional equilibrium; (3) and profit- and risk-sharing. By endorsing the conceptual autonomy of Islamic economics from conventional capitalism, the article also refers to the current emergence of the Islamic financial market at a global stage, and the possible implications for a plural financial system in the future.

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Die Stabilität von Finanzmärkten:Wie kann die Wirtschaftspolitik Vertrauen schaffen?

Zeitschrift für Wirtschaftspolitik ◽

10.1515/zfwp-2006-0104 ◽

2006 ◽

Vol 55 (1) ◽

Author(s):

Theresia Theurl ◽

Jan Pieter Krahnen ◽

Thomas P. Gehrig

Keyword(s):

Credit Risk ◽

Financial Markets ◽

Financial Market ◽

Financial Institutions ◽

Banking Sector ◽

Public Awareness ◽

Credit Derivatives ◽

Point Of View ◽

Regulatory Oversight ◽

The Creation

AbstractFrom Theresia Theurl’s point of view financial markets exhibit certain features that turn them inherently unstable. Therefore, economic policy measures were necessary and advisable, but they should not take the shape of isolated and selected interventions. Rather, these measures of financial market supervision and regulation had to be integrated into a comprehensive concept of micro- and macroeconomic policy in order to allow the creation of stabilizing trust.In his contribution, Jan Pieter Krahnen maintains, that the systemic risk of banks and financial institutions has changed and risen in recent years. According to his view, this is due to a more widespread use of credit derivatives. Although they may cause a more efficient distribution of credit risk in the banking sector, at the same time they could mean a higher vulnerability of the banking sector to system-wide contagion effects of credit risk. As such, financial market supervision as well as the Basel II rules on Capital Standards should take into account not only the credit risk exposure of individual financial institutions, but also correlation measures of their share prices.For Thomas Gehrig, empirical anomalies demonstrate the relevance of awareness and trust in financial markets. This note would argue in favor of social policies that enhance public awareness in financial markets as a basis for trust. And so naturally, these policies need to be complemented by a strong financial order that aims at minimizing behavioral risks. He says, trust requires a regulatory framework that reduces manipulation by private as well as public interests. A competitive order complemented by strong regulatory oversight may go a long way towards generating liquid financial markets and the creation of trust. Trust by individuals, however, would be most strongly encouraged when individuals are entrusted in managing their own financial market activities including their own pension arrangements.

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

Management ◽

10.2478/manment-2013-0064 ◽

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.

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