Effectiveness of Regional Insurance Networks and the European Stability Mechanism

Abstract

The article is dedicated to approaches to assessing the effectiveness of re- gional insurance networks in comparison with classic financial institutions established under the auspices of the UN – International Monetary Fund and World Bank Group. On the basis of the evolution of the anti-crisis tools of international financial organisations, the place of regional financial mechanisms (regional insurance networks) is analysed as a new form of debasement of financial imbalances of the region, mitigating certain shortcomings of the IMF anti-crisis regulation model. Close attention is paid to the taxonomy of the Regional Financial Arrangements (RFA) in terms of forming a resource base and directions of the use of funds, their integration into global safety networks. The European Stability Mechanism is understood as a specified form of the RFA, which has the largest resources, the possibility of attracting them on a market basis and an extended range of areas of use. The author used specially tailored criteria to assess the effectiveness of the RFA in terms of lock of crisis events at the regional level. It is concluded that the RFA can only partially be considered as a lender of last resort for a group of major states, while a special model of the functioning of the European Stability Mechanism allowed to solve the tasks of anti-crisis regulation in the EU.