Unregulated Use of Blockchain Technologies in the Financial Markets

2021 ◽  
pp. 180-202
Author(s):  
Nataliya A. Amosova ◽  
Anna Yu. Kosobutskaya ◽  
Olga V. Luskatova ◽  
Annie V. Ravohanginirina
Keyword(s):  
Financial Markets ◽  
Financial Institutions ◽  
New Technologies ◽  
Correct Solution ◽  
Technology Usage ◽  
Blockchain Technology ◽  
Credit Institutions

The chapter studies the problem of a possible influence of the unregulated use of blockchain technology on financial markets and regulation. The authors proceed from the assumption that development of new technologies used in financial markets is of great importance and, at the same time, see a threat to the stable functioning and regulation of financial institutions, primarily credit institutions. The correct solution of the question of the necessity and the limits of regulation of the blockchain technology usage in financial markets, in the authors' opinion, should be considered a factor of the financial markets' competitiveness improving.

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

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.

Banking on Failure

2020 ◽  
Author(s):  
Richard S Collier
Keyword(s):  
Financial Markets ◽  
Financial Institutions ◽  
Current Position ◽  
Tax System ◽  
Number Of Factors ◽  
Tax Systems

This book seeks to explain why and how banks ‘game the system’. More specifically, its objective is to account for why banks are so often involved in cases of misconduct and why those cases often involve the exploitation of tax systems. To do this, a case study is presented in Part I of the book. This case study concerns a highly complex transaction (often referred to as ‘cum-ex’) designed to exploit a flaw at the intersection of the tax system and the financial markets settlements system. It was entered into by a very large number of banks and other financial institutions. A number of factors make the cum-ex transaction remarkable, including the sheer scale of the financial amounts involved, the large number of banks and financial institutions involved, the comprehensive failure of the controls infrastructure in this highly regulated sector, and the fact that authorities across Europe have found it so difficult to deal with the transaction. Part II of the book draws out the wider significance of cum-ex and what it tells us about modern banks and their interactions with tax systems. The account demonstrates why the exploitation of tax systems by banks is practically inevitable due to a variety of systemic features of the financial markets and of tax systems themselves. A number of possible responses to the current position are suggested in the final chapter.

scholarly journals Blockchain Disrupting Fintech and the Banking System

Proceedings ◽  
2021 ◽  
Vol 74 (1) ◽  
pp. 24
Author(s):  
Eduard Alexandru Stoica ◽  
Daria Maria Sitea
Keyword(s):  
Artificial Intelligence ◽  
Machine Learning ◽  
Big Data ◽  
Financial Institutions ◽  
New World ◽  
Great Part ◽  
Banking System ◽  
Daily Activities ◽  
Blockchain Technology ◽  
Almost All

Nowadays society is profoundly changed by technology, velocity and productivity. While individuals are not yet prepared for holographic connection with banks or financial institutions, other innovative technologies have been adopted. Lately, a new world has been launched, personalized and adapted to reality. It has emerged and started to govern almost all daily activities due to the five key elements that are foundations of the technology: machine to machine (M2M), internet of things (IoT), big data, machine learning and artificial intelligence (AI). Competitive innovations are now on the market, helping with the connection between investors and borrowers—notably crowdfunding and peer-to-peer lending. Blockchain technology is now enjoying great popularity. Thus, a great part of the focus of this research paper is on Elrond. The outcomes highlight the relevance of technology in digital finance.

scholarly journals The Sustainable Development of Financial Topic Detection and Trend Prediction by Data Mining

2021 ◽  
Vol 13 (14) ◽  
pp. 7585
Author(s):  
Yunmei Liu ◽  
Shuai Zhang ◽  
Min Chen ◽  
Yenchun Wu ◽  
Zhengxian Chen
Keyword(s):  
Data Mining ◽  
Supply Chain ◽  
Financial Institutions ◽  
Clustering Algorithm ◽  
Development Trend ◽  
Research Field ◽  
Trend Prediction ◽  
Blockchain Technology ◽  
Supply Chain Finance ◽  
The Government

Blockchain technology is the most cutting-edge technology in the field of financial technology, which has attracted extensive attention from governments, financial institutions and investors of various countries. Blockchain and finance, as an interdisciplinary, cross-technology and cross-field topic, has certain limitations in both theory and application. Based on the bibliometrics data of Web of Science, this paper conducts data mining on 759 papers related to blockchain technology in the financial field by means of co-word analysis, bi-clustering algorithm and strategic coordinate analysis, so as to explore hot topics in this field and predict the future development trend. The experimental results found ten research topics in the field of blockchain combined with finance, including blockchain crowdfunding, Fintech, encryption currency, consensus mechanism, the Internet of Things, digital financial, medical insurance, supply chain finance, intelligent contract and financial innovation. Among them, blockchain crowdfunding, Fintech, encryption currency and supply chain finance are the key research directions in this research field. Finally, this paper also analyzes the opportunities and risks of blockchain development in the financial field and puts forward targeted suggestions for the government and financial institutions.

scholarly journals Blockchain Technology for Winning Consumer Loyalty: Social Norm Analysis Using Structural Equation Modeling

Mathematics ◽  
2021 ◽  
Vol 9 (5) ◽  
pp. 532
Author(s):  
María de los Ángeles Pérez-Sánchez ◽  
Zhuowei Tian ◽  
Almudena Barrientos-Báez ◽  
José Gómez-Galán ◽  
Hanliang Li
Keyword(s):  
Structural Equation Modeling ◽  
Technology Acceptance ◽  
Social Exchange ◽  
Local Governments ◽  
Structural Equation ◽  
Social Norm ◽  
New Technologies ◽  
Equation Modeling ◽  
Consumer Loyalty ◽  
Blockchain Technology

Remarkable changes have taken in social operation mode and consumers’ behavior mode because of the foot ban during the pandemic spread of COVID-19. Digital technologies such as Blockchain have shown potential in gaining competitive advantages for enterprises in such situations. This study aims to provide an insight into how to gain consumer loyalty through the use of modern and efficient Blockchain technology. In contrast to the current literature, this study combined the technology acceptance model of planned behavior theory, social exchange theory to explain the loyalty of an online travel agency (OTA) consumer. A self-administered questionnaire was used to collect data from citizens in Hangzhou, a city full of technological innovation atmosphere. Using structural equation modeling with SmartPLS©, responses from 1403 citizens were analyzed. Social norm was discovered to have a positive and significant association with the consumers’ attitude toward technology and thus enhancing the perceived usability and hedonism of OTA application, which can increase consumer loyalty. The findings suggested OTAs may gain consumers’ loyalty through adopting Blockchain technology, and local governments have played a key role in creating such an environment. New technologies have become essential professional and social tools for society. The technological environment and Blockchain within the tourism sector are fundamental elements of China’s economic engine.

Critical Analysis of the Zero Risk Weight Privilege for European Sovereign Debt in Light of Art. 124 TFEU

2020 ◽  
Vol 17 (1) ◽  
Author(s):  
Patrick Hauser
Keyword(s):  
Financial Institutions ◽  
Sovereign Debt ◽  
Banking System ◽  
Financial System ◽  
Significant Risk ◽  
Capital Adequacy ◽  
Individual Member ◽  
Member States ◽  
The Individual ◽  
Credit Institutions

AbstractThe zero risk weight privilege for European sovereign debt in the current capital adequacy requirements for credit institutions incentivises credit institutions to acquire and hold sovereign debt. However, it also poses a significant risk to the stability of the banking system and thus the financial system as a whole. It is argued that this privilege should not only be abolished due to the risk it entails but that it is also non conformant with EU primary law. Art. 124 TFEU prohibits privileged access of the EU and Member States' public sector to financial institutions except for prudential considerations. The protective purpose of Art. 124 TFEU to ensure sound budgetary policies by subjecting public borrowing to the same rules as borrowing by other market participants is thwarted by the uniform zero risk weight privilege. Further, as this privilege does not take into account the varying creditworthiness of the individual Member States it does not promote the soundness of financial institutions so as to strengthen the soundness of the financial system as whole, but rather endangers systemic stability. The zero risk weight privilege is therefore not based on prudential considerations and hence violates Art. 124 TFEU.

COVID -19 and Indian Financial Markets: A Review

2020 ◽  
Vol 16 (02) ◽  
pp. 1-8
Author(s):  
Kamaldeep Kaur Sarna
Keyword(s):  
Financial Markets ◽  
Financial Institutions ◽  
Financial Services ◽  
Stock Markets ◽  
Global Economy ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Negative Impact ◽  
Management Strategies ◽  
The Impact

COVID-19 is aptly stated as a Black Swan event that has stifled the global economy. As coronavirus wreaked havoc, Gross Domestic Product (GDP) contracted globally, unemployment rate soared high, and economic recovery still seems a far-fetched dream. Most importantly, the pandemic has set up turbulence in the global financial markets and resulted in heightened risk elements (market risk, credit risk, bank runs etc.) across the globe. Such uncertainty and volatility has not been witnessed since the Global Financial Crisis of 2008. The spread of COVID-19 has largely eroded investors’ confidence as the stock markets neared lifetimes lows, bad loans spiked and investment values degraded. Due to this, many turned their backs on the risk-reward trade off and carted their money towards traditionally safer investments like gold. While the banking sector remains particularly vulnerable, central banks have provided extensive loan moratoriums and interest waivers. Overall, COVID-19 resulted in a short term negative impact on the financial markets in India, though it is making a way towards V-shaped recovery. In this context, the present paper attempts to identify and evaluate the impact of the pandemic on the financial markets in India. Relying on rich literature and live illustrations, the influence of COVID-19 is studied on the stock markets, banking and financial institutions, private equities, and debt funds. The paper covers several recommendations so as to bring stability in the financial markets. The suggestions include, but are not limited to, methods to regularly monitor results, establishing a robust mechanism for risk management, strategies to reduce Non-Performing Assets, continuous assessment of stress and crisis readiness of the financial institutions etc. The paper also emphasizes on enhancing the role of technology (Artificial Intelligence and Virtual/Augmented Reality) in the financial services sector to optimize the outcomes and set the path towards recovery.

Loan collaterals and collateral substitutes in rural finance: a review

2015 ◽  
Vol 11 (2) ◽  
pp. 36-56
Author(s):  
MG Maiangwa
Keyword(s):  
Moral Hazard ◽  
Financial Markets ◽  
Financial Institutions ◽  
Farm Households ◽  
Rural Finance ◽  
Traditional Methods ◽  
Limited Availability ◽  
Rural Financial Markets

Poor farm households and other microentrepreneurs have difficulties in obtaining loans from banks and other financial institutions because they are unable to provide securities or collaterals for the loans. Collaterals on loans reduce uncertainty and moral hazard problems for creditors. They also serve as a measure of the seriousness of the borrower. The limited availability of conventional collaterals in rural financial markets has led to the acceptance of non-traditional methods of loan security referred to as collateral substitutes. This paper reviews loan collaterals and collateral substitutes in the rural financial markets of developing countries.Keywords:: Collaterals, collateral substitutes, rural finance.

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