Problems and Prospects of Developing the Financial Market Infrastructure Potential under Conditions of Economic Shocks
Journal Title: Проблеми економіки - Year 2015, Vol 2015, Issue 4
Abstract
The article is devoted to systematizing the problems of infrastructural potential in the securities market, and finding the ways of their solution under conditions of economic shocks. A large number of regulators in financial markets and the low efficiency of the regulatory process have caused a high risk of fraud with the financial market operations, in consequence of which the level of trust in it remains very low. All these problems over the last two years have worsened even more as economic uncertainty deepened under the influence of political uncertainty. This situation became the basis for the emergence of serious shocks in the economy, which aggravate the problems of developing the financial market and its infrastructural potential. The results of the conducted research have shown that under conditions of economic shocks the most vulnerable sectors of the financial market is the securities market, banking sector and insurance market. Under conditions of economic shocks the complex chains of mutual influence that exist between these sectors are being violated, which affects developing the infrastructural potential of the financial market. The negative impact on the infrastructural potential development is manifested through the low efficiency of the securities market, which is under excessive bank-centricity not able to soften the blows of economic shocks. The poor quality of the banking system regulation violates its resistance to crises, and the low quality of disclosure does not contribute to building trust in the banking sector. Taking into account the fact that insurance companies place their reserves mainly on bank deposits, the banking crisis is the cause of a chain reaction in the insurance market. As a result, the main elements of the financial market function efficiently. The solution of the identified problems includes improving the quality of information support of activity in the financial markets and raising the level of responsibility of the regulators for poor quality of regulation or inaction under conditions of economic shocks.
Authors and Affiliations
Iryna Chunytska
Keywords
Related Articles
- EP ID EP133214
- DOI -
- Views 66
- Downloads 0
Heterogeneity Factor of Personnel in Growth of the Intellectual Capital of Innovation-active Enterprises
The structure of the personnel of innovation active engineering enterprises was analyzed on various groups of heterogeneity. Predominance of workers with higher education was found with significant age differentiation an...
Characteristic of activity of enterprises of the fuel and energy complex of Russia on introduction of innovation technologies and equipment
Competitiveness of enterprises of the fuel and energy complex of Russia is determined now by efficiency of innovation activity. Technological innovations that are capable of increasing efficiency of development of hydroc...
Modelling supply in Ukrainian financial market
The article states that despite the fact that financial market of Ukraine is insufficiently developed, volatile, disproportional, speculative and being significantly dependant on foreign capital and foreign economic dyna...
State policy in the financial sphere in the context of entering the post-crisis trajectory of development
The article provides results of the study of the state policy in the financial sphere at the pre-crisis stage of development of the world economy. It shows the phenomenon of inclination to liberalisation, which hinders r...
The Analysis and Structuring of the Causes Impeding the Introduction of Advanced Technologies for Exchange Grain Trading
In the article the main causes impeding the development and introduction of advanced technologies for grain trading on commodity exchanges in Ukraine have been identified and structured. The generalization of existing sh...