THE FINANCIAL SYSTEM MODELLING BY VARIOUS SIGNS OF CLUSTERING

Abstract

This paper provides an overview of conceptual issues and recent researches concerning the role and structure of financial systems and a comparative analysis for various types of financial systems. The authors start to find out the importance of financial system, its elements and functional purpose and then outline different types of national financial systems. For defining structural elements of the financial systems the criteria that were used are the resource and institutional concepts. Within the institutional concept, its followers use various approaches to analyze the national financial systems — functional, intermediation, system etc. Authors structure the main elements of the financial system according to forms of ownership; subjects of financial relations; spheres and links of financial relations. Authors identified several signs for modelling the financial systems: the territorial criteria; the economic systems type criteria; the level of centralization of GDP within the financial model of the market economy; the weight of market financing and bank lending. The last part is dedicated to the comparative analysis of different financial systems models: it analyses the similarities and the differences of the national financial systems models of OECD countries, some advanced economies, and emerging market economies. For the determination of the national model of economic development authors formed clusters which exist in the world models of financial systems according to 1) the centralization and redistribution of GDP through the budget system; 2) the level of tax burden; 3) debt load; 4) cyclically adjusted primary balance. This leads to the concluding discussion of what is stated that the choice of the model of state’s financial system depends on many factors: the natural conditions, the wealth of the country, specific historical traditions, demographic factors, tasks and objectives of financial policy, as well as the level of tax culture and financial psychology.