Possible Effects Of A Russian-Chinese Joint SWIFT System On The Eurasian Economy And The World Trade System

The Society for Worldwide Interbank Financial Telecommunications, called SWIFT, is considered a cornerstone of global transactions. At its founding, SWIFT membership amounted to 239 banks from fifteen Western countries. Past examples show that SWIFT can also be used as a weapon, even though it is nominally independent. Recent statements indicate that the US and the EU are seriously considering removing Russia from the SWIFT system in case of tension. In fact, back in 2014 after Russia annexed Ukraine's Crimea Peninsula, there were calls to cut Russia off from SWIFT. In response, Russia developed a its domestic financial-communications platform. It should be taken into account that in case certain Russian banks are disconnected from SWIFT, these Russian banks and multinationals looking for ways to move money may find a warm welcome in the growing Chinese Cross-border Interbank Payment System (CIPS). In recent years, there has been a significant increase in both the EU and the US use of economic sanctions to force other countries they consider as adversaries "in line" with Western interests. Being in the same alliance no longer suffices in guaranteeing exclusion from such economic sanctions. On the contrary, such sanctions have been turned into a teaching lesson even to allies, and it is undeniable that this behavior has reached a level that will shake even the strongest alliances. It should also be kept in mind that this contemptuous approach erodes the patience of the public opinions of the countries that are not included in the Western World or constantly excluded despite being in that group. It is unlikely that the results of employing sanctions, which has become a habit for the US and the EU, to the most significant countries of the world, such as Russia and China, in terms of their military power as well as their economies, will lead to beneficial results. The developments in the coming period may serve as a reminder that the Western world must act with common sense to avoid sowing divisions in the world trade system.

Readability of Korean-Language advertising disclosures moderates knowledge effects

PurposeGovernment policy mandates information disclosure in financial communications to protect consumer welfare. Unfortunately, low readability can hamper information disclosures’ meaningful benefits to financial decision making. Thus, this experiment tests the product evaluation and decision satisfaction of Korean consumers with less or more subjective knowledge and with or without personal finance education.Design/methodology/approachA between-subjects experiment examined responses of a nationally representative sample of 400 Korean consumers toward a Korean-language credit card advertisement.FindingsFinancial knowledge improves financial product evaluation and decision satisfaction. More readable disclosures improved evaluation and satisfaction among less knowledgeable consumers. Less readable disclosures did not. Consumers without financial education exhibited lower evaluations and decision satisfaction regardless of readability. More knowledgeable consumers and those with financial education performed equally well regardless of disclosure readability.Practical implicationsFinancial service providers seeking more accurate evaluations and better decision satisfaction among their customers should use easier-to-read disclosures when targeting consumers with less prior financial knowledge.Social implicationsOne-size-fits-all financial communications are unlikely to achieve public policy or consumer well-being goals. Government-mandated information should be complemented by augmenting financial knowledge and providing personal finance training.Originality/valueAlthough almost a quarter of the world’s population lives in East Asia, this is the first examination of readability in disclosures written in East Asian characters rather than a Western alphabet. Previous readability research on Asian-originating financial disclosures has been conducted on English-language texts. This study extends knowledge of readability effects to growing East Asian markets.

Los públicos de las comunicaciones financieras. Investor relations & financial communications

En los últimos años, se ha destacado la función de las comunicaciones financieras dentro de las Relaciones Públicas. Los requisitos de un mayor acceso a la información, transparencia y gobierno corporativo crean hoy desafíos significativos para todas aquellas compañías que cotizan en Bolsa, así como de firmas sin cotización oficial. El arte de comunicar en estas esferas, requiere la especialización de los profesionales para alcanzar el público adecuado con el uso de las herramientas pertinentes en el momento oportuno, transmitiendo el mensaje a la comunidad en forma estratégica. Para esto, hay que reconocer los actores destacados de este ámbito -como mercados de valores, agentes financieros internacionales, analistas, medios de comunicación, bancos, instituciones estatales, el parlamento, los empleados- y el intercambio que se produce entre la empresa y sus inversionistas.