Transformation of Behaviour of Household Savings into Investments Market

N Bagautdinova

doi:10.5901/mjss.2014.v5n18p87

Abstract

This article considers the role of money in household savings in the system of the investment process and the formulation of financial resources on this basis guidelines to enhance the transformation of savings into investments. bThe authors also offer an integrated indicator of the efficiency of social and economic policy of the region as the basic indicator of the evaluation of the decisions made for the implementation of social and economic policy of the region. They also create the mechanism of management of the region by means of implementation of social and economic policy on the basis of labor potential. DOI: 10.5901/mjss.2014.v5n18p87

Highlights

In the conditions of postindustrial society the importance of financial sphere is growing rapidly
High yield of financial operations conditions the reallocation of sources in favour of the financial sector, which is reflected in high tempos of its growth
As the key factors in the increasing role of the financial sector in modern world economy there might be mentioned the changing of its structure leading to the replacement of the commercial credit by the derivatives as the source of income of its subjects, the priority of the short-term form of financing, excess of refinancing rates of the Central banks over the tempos of economic growth [2], which predestined the redistribution of resources in favour of speculative trading

Summary

Introduction

In the conditions of postindustrial society the importance of financial sphere is growing rapidly. Alongside with the traditional function of effective redistribution of resources among the subjects of the real sector this sphere starts to perform an independent function, which is revealed in the usage of the immanent growth factors irrespectively of the conditions and lines of the development of other economic sectors It finds its reflection in the formation of derivatives and the objects of infrastructure providing their effective usage. At the same time the dynamics of the financial markets indicators doesn’t reflect objectively the dynamics of the processes of production, which causes strengthening of volatility of external environment of business entities in the real sector of economics and taking ineffective management decisions In these conditions the process of strategic planning gets seriously complicated and there arises the necessity for additional expenses on the risk assurances, the structure of which has seriously changed [5]. In the circumstances of lowering of the attractiveness of the methods of debt financing and high expenditures of mobilization of resources via the capital market there arises the necessity to search for organizational and managerial innovations, the implementation of which strengthens the market power of particular business entities and provides the increase of their level of competition

The Method of Research

The Assessment of Customer Value of a Financial Sector Product

Results and Recommendations