scholarly journals THE ROLE OF DERIVATIVE INSTRUMENTS IN FINANCIAL STABILITY

2019 ◽  
Vol 4 (8) ◽  
pp. 130-135
Author(s):  
Lela Scholer-Iordanashvili
Keyword(s):  
Interest Rates ◽  
Financial Stability ◽  
World Economy ◽  
Foreign Currency ◽  
Financial System ◽  
Recent Decade ◽  
Negative Influence ◽  
The World ◽  
Correlation Rate

Globalization offers new challenges to the world economy, which becomes more depended on unprecedented in- crease of financial activity worldwide. Availability of information and development of technologies significantly increased capital flow in the world and role of capital and monetary markets in economy. Second half of 2007 and first half of 2008 faced import- ant events in the world economy. Among them especially no- table are US real estate crisis and global limitation of credits, devaluation of USD and strengthening of inflation processes. These global events have significant influence over financial stability. In the recent decade variability of stocks and interest rates, together with globalization of capital markets, in- creased demand on financial instruments with the purpose of distribution of risks. From this perspective, interest rate derivatives are most frequently marketed among OCT derivatives. Therefore, estimation of the role of financial derivatives instruments is very important in stability of international financial system. Purpose of research is to analyze influence of derivatives over financial crisis. Within frameworks of re- search 5 countries are studied for 1997-2010 quarterly. OLS regressive equation is used in research for empirical tests. Model includes following variables: crisis index (dependent variable), independent variables are: correlation rate of cur- rent account and GDP, correlation rate of domestic credit on private sector with GDP, correlation rate between foreign currency reserves and conditional amounts of market derivatives on the stock exchange. Empirical analysis shows us that influence of derivatives over financial stability is not unilateral and depends on characteristics of financial system of the country. Particularly, in Singapore and USA, where financial system is strong, influence of derivatives is positively reflected on financial stability, and empirical study conduct- ed on example of emerging markets, particularly, Argentina, Russia and Brazil revealed negative influence of derivatives on financial system.

Role of Negative Interest Rates for Energy Assets Pricing in Financial Markets

2021 ◽  
pp. 107-119
Author(s):  
Ismail Ismailov ◽  
Tomonobu Senjyu
Keyword(s):  
Financial Markets ◽  
Interest Rates ◽  
World Economy ◽  
Foreign Currency ◽  
Banking System ◽  
Negative Interest Rates ◽  
The World ◽  
Energy Assets ◽  
National Banking System

The world economy strives for globalization, and most energy assets are connected with each other through correspondent banks and other mutual operations. The relevance of the topic of the thesis is due to the fact that in September 2019 a number of proposals were made to introduce the practice of negative interest rates in the national banking system due to the fact that Russian energy assets are not profitable to place in foreign currency..

scholarly journals Analyzing the Impact of Derivatives on the Emerging Markets Financial Stability

2020 ◽  
Vol 16 (28) ◽  
Author(s):  
Lela Scholer-Iordanashvili
Keyword(s):  
Emerging Markets ◽  
Interest Rates ◽  
Financial Crises ◽  
Financial Stability ◽  
Financial System ◽  
Recent Decade ◽  
Negative Influence ◽  
International Financial Crises ◽  
The Stability ◽  
The Impact

In recent decade, volatility of stocks and interest rates, together with the globalization of capital markets, increased the demand on financial instruments with the purpose of distribution of risks. The estimation of the role of financial derivatives instruments is very important for the stability of international financial system. The impact of derivatives upon International Financial Crises is an issue that is still dividing academics and practitioners. This paper focuses on analyzing the roles of derivatives in the financial crises. Within the framework of this research, three (3) emerging countries were studied for 1997-2010 quarterly. OLS regressive equation was used for empirical tests. The model includes the following variables: crisis index (dependent variable) and independent variables which include: the Ratio of the Current Account to GDP, the Ratio of the Domestic Credits on Private Sector to GDP, and the Ratio of the total notional amounts outstanding of the exchange traded derivatives to Foreign Exchange Reserves. Empirical analysis shows that the influence of derivatives over financial stability is not unilateral, and it depends on the characteristics of the financial system of the country. The study conducted on example of emerging markets, particularly Argentina, Russia and Brazil, revealed negative influence of derivatives on the financial system.

scholarly journals Exploring the Role of Islamic Fintech in Combating the Aftershocks of COVID-19: The Pen Social Innovation of the Islamic Financial System

2021 ◽  
Vol 7 (2) ◽  
pp. 136
Author(s):  
Mustafa Raza Rabbani ◽  
Abu Bashar ◽  
Nishad Nawaz ◽  
Sitara Karim ◽  
Mahmood Asad Mohd. Ali ◽  
...  
Keyword(s):  
Financial Services ◽  
Open Innovation ◽  
Financial Stability ◽  
Social Innovation ◽  
Global Financial Crisis ◽  
Financial System ◽  
Real Economy ◽  
Business Context ◽  
The World

The purpose of the current study is to investigate the role of the Islamic financial system in recovery post-COVID-19 and the way Fintech can be utilized to combat the economic reverberations created by COVID-19. The global financial crisis of 2008 has established the credentials of the Islamic financial system as a sustainable financial system which can save the long run interests of the average citizens around the world while adding value to the real economy. The basic ethical tenets available in the Islamic financial system make it more suited and readymade to fight the economic aftershocks of a pandemic like COVID-19. The basic principles of ethical Islamic finance have solid connections to financial stability and corporate social responsibility within the wide-reaching business context. With the emergence of Financial technology (Fintech) it has provided a missing impetus to the Islamic financial system to compete on equal ground with its conventional counterpart and prove its mettle. The study uses discourse analysis along with the content analysis to extract content and draw a conclusion. The findings of the study indicate that COVID-19 pandemic has provided the opportunity for the social and open innovation to grow and finance world have turned to open innovation to provide a speedy, timely, reliable, and sustainable solution to the world. The findings of the study provide significant implications for governments and policy makers in efficient application of Fintech and innovative Islamic financial services to fight the economic consequences of the COVID-19 pandemic.

scholarly journals PENGARUH FINANCIAL TECHNOLOGY (FINTECH) TERHADAP STABILITAS SISTEM KEUANGAN DI INDONESIA

2021 ◽  
pp. 921
Author(s):  
Birgitta Dian Saraswati ◽  
Ni Made Tisnawati
Keyword(s):  
Exchange Rates ◽  
Interest Rates ◽  
Financial Stability ◽  
Financial System ◽  
System Stability ◽  
Series Data ◽  
Macroeconomic Variables ◽  
P2p Lending

Financial stability is very important in the economy because financial stability will ensure smooth financial transactions in the economy.This study aims to analyze the effect of P2P lending fintech, payment fintech and macroeconomic variables (inflation, interest rates and exchange rates) on financial stability in Indonesia.This study uses time series data with the period 2018.1-2021.4. Using the Vector Error Correction Model, this research shows that Fintech P2P Lending, Fintech Payments and macroeconomic variables (inflation, interest rates and exchange rates) affect the financial stability in Indonesia only in the long term.Fintech P2P lending in the long term will lead to financial system instability, while Fintech payments in the long term have a positive effect on financial system stability in Indonesia. This has policy implications where through the role of the Financial Services Authority it is necessary to regulate and supervise P2P lending fintech. In addition, considering that payment fintech has a positive impact on financial system stability in Indonesia, through the role of Bank Indonesia, it is necessary to design policies to increase the use of non-cash payment instruments.

scholarly journals Konsep Rate of Profit dan Stabilitas Ekonomi Perbankan Syariah

ETIKONOMI ◽  
2015 ◽  
Vol 14 (2) ◽  
Author(s):  
Trisiladi Supriyanto
Keyword(s):  
Interest Rates ◽  
Financial Stability ◽  
Asset Price ◽  
Financial System ◽  
Economic Justice ◽  
Net Income ◽  
Liability Management ◽  
The Stability ◽  
Rate Of Profit

The Rate of Profit Concept and Economic Stability in Islamic BanksThis study aims to find the concept of rate of profit on Islamic banking that can create economic justice. Rate of profit that creates economic justice can be achieved through its role in maintaining the stability of the financial system in which there is an equitable distribution of income and wealth. To determine the role of the rate of profit as the basis of the sharing system implemented in the Islamic financial system, we can see the connection of rate of profit in creating financial stability, especially in the asset-liability management of financial institutions that generate a stable net income or the rate of profit that is not affected by the ups and downs of the market risk factors including indirect effect on interest rates. Futhermore, Islamic financial stability can be seen from the role of the rate of profit on the stability of the Islamic financial assets that are measured from the Islamic financial asset price volatilityDOI: 10.15408/etk.v14i2.2270

On Energy Status indicators and the role of renewableEnergy under Economic Crisis

2014 ◽  
pp. 92-105
Author(s):  
P. Bezrukikh ◽  
P. Bezrukikh (Jr.)
Keyword(s):  
Renewable Energy ◽  
World Economy ◽  
Electrical Energy ◽  
Primary Energy ◽  
Primary Energy Consumption ◽  
Energy Status ◽  
Economy Growth ◽  
The World ◽  
Production Regime

The article analyzes the dynamics of consumption of primary energy and production of electrical energy in the world for 1973-2012 and the volume of renewable energy. It is shown that in the crisis year of 20 0 9 there was a significant reduction in primary energy consumption and production of electrical energy. At the same time, renewable energy has developed rapidly, well above the rate of the world economy growth. The development of renewable energy is one of the most effective ways out of the crisis, taking into account its production regime, energy, environmental, social and economic efficiency. The forecast for the development of renewable energy for the period up to 2020, compiled by the IEA, is analyzed. It is shown that its assessment rates are conservative; the authors justify higher rates of development of renewable energy.

The Role of Technological Change in the Long-run Global Economy Forecasting

2013 ◽  
pp. 97-116 ◽  
Author(s):  
A. Apokin
Keyword(s):  
Technological Change ◽  
Data Quality ◽  
Long Range ◽  
Global Economy ◽  
World Economy ◽  
Qualitative Approaches ◽  
Long Run ◽  
The World ◽  
National Economies

The author compares several quantitative and qualitative approaches to forecasting to find appropriate methods to incorporate technological change in long-range forecasts of the world economy. A?number of long-run forecasts (with horizons over 10 years) for the world economy and national economies is reviewed to outline advantages and drawbacks for different ways to account for technological change. Various approaches based on their sensitivity to data quality and robustness to model misspecifications are compared and recommendations are offered on the choice of appropriate technique in long-run forecasts of the world economy in the presence of technological change.

scholarly journals Robots as intelligent assistants to face COVID-19 pandemic

2020 ◽  
Author(s):  
Valeria Seidita ◽  
Francesco Lanza ◽  
Arianna Pipitone ◽  
Antonio Chella
Keyword(s):  
Technological Progress ◽  
World Economy ◽  
The State ◽  
Research Groups ◽  
Negative Effects ◽  
The World ◽  
Intelligent Assistants

Abstract Motivation The epidemic at the beginning of this year, due to a new virus in the coronavirus family, is causing many deaths and is bringing the world economy to its knees. Moreover, situations of this kind are historically cyclical. The symptoms and treatment of infected patients are, for better or worse even for new viruses, always the same: more or less severe flu symptoms, isolation and full hygiene. By now man has learned how to manage epidemic situations, but deaths and negative effects continue to occur. What about technology? What effect has the actual technological progress we have achieved? In this review, we wonder about the role of robotics in the fight against COVID. It presents the analysis of scientific articles, industrial initiatives and project calls for applications from March to now highlighting how much robotics was ready to face this situation, what is expected from robots and what remains to do. Results The analysis was made by focusing on what research groups offer as a means of support for therapies and prevention actions. We then reported some remarks on what we think is the state of maturity of robotics in dealing with situations like COVID-19.

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