Abstract
Many of the reforms appeared and have touched the economic and financial sector, perhaps the most important is the financial liberalization policy that have emerged since the seventies, which aims to ease the degree of restrictions on the financial system in order to enhance the level of efficiency and reform entirely, by opening the financial and capital markets to foreign companies in the fields of banks and insurance and securities and investment firms and fund management and a large number of services. However, the financial liberalization hasty process and random may lead to violent crises and imbalances significant at the level of macro and micro economic, especially those relating to the stability of the financial system in emerging markets, and has become maintain the stability of the financial system at the local and international levels critical for countries in general a target, and the newly industrialized countries in the ways of growth in particular, and the aim of this study is to provide a conceptual theoretical framework of financial liberalization; identify the nature of the financial system and financial stability of emerging markets; and emphasize the importance of a balanced financial liberalization in maintaining the stability of the financial system in emerging financial markets. DOI: 10.5901/mjss.2015.v6n6p22
Highlights
The financial liberalization has many advantages and positive aims, but it remains one of the largest causes of crises that touched the economics of many developed and developing countries, the policy of financial liberalization immediate and non-caution, especially in economies fragile inevitably lead to violent crises, it may be difficult to get out of them, so to be on the countries that want to adopt this policy to work hard in order to improve the financial and economic sector before entering into liberalized phase, and the problem we are trying to answer them is through this following questions: - What is the definition of financial liberalization? - How financial liberalization contributes to the stability of the financial system in emerging markets?
The purpose of this study is to explore the relationship between financial liberalization and stability of the financial system in emerging markets, and we seek:
Through the previous we can say that the financial liberalization is the set of procedures that are working on the development of financial markets, which are taken by the State to eliminate or mitigate the degree of restrictions on the financial system, and this in order to enhance the level of efficiency and reform entirely, by opening the financial and capital markets to foreign companies
Summary
The global economy is quickly shifts and changes at the macro and micro levels, the financial and banking sector is the most sensitive sector and in response to these changes, especially in the last quarter of the last century, this is what led to the emergence and the birth of a new financial system, characterized by free movement of capital and removes all regulatory and legislative barriers to expansion and multiple domains, this system is known financial liberalization. Decision-makers seeking today to find as a quick solution to the repeated crises that hit the capitalist system, which was most recently the 2008 crisis, and that in order to maintain the stability of the financial system in the financial markets in general and emerging markets in particular, what has made this stability is a strategic goal for many international financial institutions, especially the International Monetary Fund and the World Bank, which have become dailies many reports and studies rotating in order to achieve stability in the financial system and keep it, and the financial system consists of many of the link elements close with each other, and that any disturbance occurs in a component of the These elements lead to a weakening of the stability of the entire financial system
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