Development Of Financial System Research Articles

PERSONAL FINANCIAL CONSULTING: GLOBAL EXPERIENCE AND PROSPECTS OF DEVELOPMENT IN UKRAINE

Purpose. The purpose of this article is to study the current state of development of the personal financial consulting system in Ukraine, identify its main problems, and determine ways and measures for its improvement and development. Design/methodology/approach. In this study, an analysis of the current state of development of the financial consulting system in Ukraine was carried out. Its main shortcomings were analyzed and based on the study of foreign experience and the possibilities of its implementation in Ukraine, the main recommendations and proposals in this area were developed. Methods of scientific knowledge, analysis and synthesis of information were used to solve these problems Findings. The development of access to Ukrainian citizens to modern financial instruments requires appropriate knowledge and skills. Their absence can only lead to financial losses deterioration. The level of financial knowledge of Ukrainians remains quite low. In view of this, the article summarizes the global experience of raising the level of financial knowledge of the population and justifies the need to develop the profession of personal financial advisor and proposes a set of measures for this. The ways to this are: create and develop educational programs that will train personal financial consultants at Ukrainian universities; inclusion of this profession in the list requiring mandatory certification; creation of a transparent, responsible and professional system of financial consultants. Practical implications. Based on the results of the research, the article highlights the direction of development of the financial consulting system in Ukraine. First, it is necessary to create and develop educational programs that will train financial consultants in Ukrainian universities. Currently, such programs do not exist. In our opinion, this is a good opportunity for universities to create new and interesting educational programs, at least at the master’s level. Secondly, the profession of a financial consultant in many countries of the world is a profession with increased responsibility. If the client loses part or all of his savings due to the bad advice of a consultant, it can become a real human tragedy. Therefore, in our opinion, it makes sense to include this profession in the list that requires mandatory certification. Such certification should be carried out by selected institutions of higher education. The basis for applying for a certificate must be the availability of financial education, the relevant training must be conducted and the certification exam must be passed, based on the results of which the corresponding certificate can be issued. The National Bank of Ukraine should play an active role in the development of the financial consulting system. The financial literacy programs he implements are not able to cover the entire population, and most people do not want or are unable to learn specifically to manage their finances. Instead, the creation of a transparent, responsible, and professional system of financial consultants can certainly improve the situation in this area. Originality/value. In the article, based on the results of the analysis of the current state of development of financial consulting in Ukraine, its main shortcomings are highlighted and a series of measures to regulate the system itself and proposals for its further development are proposed.

Financial inclusion and energy poverty nexus in the era of globalization: Role of composite risk index and energy investment in emerging economies

Even in the modern era with increasing globalization and technological innovation, the issue of energy poverty is still debatable in many parts of the world. Unlike developed countries, developing countries struggle to satisfy the growing energy demand. To evaluate the role of financial inclusion and its impact on energy poverty in six representative emerging economies including Brazil, China, India, Indonesia, Mexico, and Russia from 2004 to 2019, this paper examines the role of the composite risk index (a combination of political, economic, and financial risk), investment in energy with public-private participation, gross domestic product, human capital, globalization, and renewable energy. This study first constructed a multidimensional index to measure the weighted average energy poverty and composite energy poverty index along with a novel index for financial inclusion. Moreover, this study uses novel panel data approaches such as Westerlund's cointegration and cross-sectionally augmented autoregressive distributed lags model (CS-ARDL). The study established long-run cointegrating relationship between energy poverty and its detereminants, i.e., financial inclusion, globalization, investment in energy, human capital index, income and composite risk index. The empirical results found that financial inclusion, renewable energy electricity, globalisation, income, human capital index and energy investment are the key determinants of energy poverty in emerging economies. Furthermore, financial inclusion is found to curb energy poverty. Human capital index and globalization also help to reduce energy poverty. Given the empirical results of the nexus and impacts of financial inclusion on energy poverty using the multidimensional proxies, the study provides critical implications to researchers and policymakers in mitigating the consequences of energy poverty and the development of financial systems and their co-movement with energy poverty-related issues.

Financial development and innovationled economic growth: Empirical insight from sub-Saharan Africa

The body of literature on the nexus concerning innovation, the development of financial systems, and economic growth has gained increasing attention in recent times. However, it is observed that the majority of studies are conducted in developed and emerging economies. This study is unique in its own right by exploring the effect of innovation and financial development on economic growth using panel data for 30 sub-Saharan Africa (SSA) countries from 2001-2018. The study employed symmetric panel ARDL, common correlated effect ARDL, and asymmetric panel ARDL. Our empirical findings revealed a long-run effect of innovation and financial development on the economic growth of SSA. This means that expansion of the financial sector and better innovation activities in SSA stimulate long-term economic growth. Robustness tests provided consistent results with the baseline findings. The study therefore recommends that to promote sustained economic growth and development in the region, policy makers must collectively work in close collaboration with relevant stakeholders in enhancing regional financial reforms and innovative activities.

FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH IN CAMEROON: AN ARDL BOUND TEST AND MULTIVARIATE GRANGER CAUSALITY FRAMEWORK

Although the financial system development is vital for a country’s economic growth, it is still underdeveloped in most developing countries due to poor financial policies in terms of formulation and implementation. Therefore, this study aims to examine the effects of financial system development on the economic growth of Cameroon from 1980-2020. The study makes use of the ARDL bound test and multivariate Granger causality test. The results indicate that the financial development index and liquid liabilities have short and long run positive and significant effects on economic growth. Also, the result further reveals that in the short run, there is bidirectional causality between liquid liabilities and economic growth and a unidirectional causality running from financial development index to economic growth while in the long run, causal relationship runs from financial development to economic growth. The study recommends that the government should improve its financial system by constantly monitoring the sector to create an efficient, competitive, and stable financial sector that can contribute significantly to boosting economic growth.

ПРОБЛЕМЫ И ПЕРСПЕКТИВЫ РАЗВИТИЯ ФИНАНСОВОЙ СИСТЕМЫ РОССИИ В СОВРЕМЕННЫХ УСЛОВИЯХ

The article examines contemporary problems in the development of the Russian financial system under conditions of sanctions pressure. The shortcomings of the financial system development mechanisms existing at the time of the introduction of sanctions were identified. It is substantiated that monetary policy instruments help to align economic activity and maintain a disinflationary effect on the economy. The complex of financial instruments that must be used in the current conditions to ensure the economic, financial, and technological sovereignty of Russia is considered.

Sustainable financial services as a tool for sustainable economic development

The author reviewed the essence and role of sustainable financial services, emphasised the main aspects of the introduction of sustainable financial services, and provided a chronology of the introduction of global climate initiatives. Due to the fact that in many countries the level of development of “green” finance is still relatively low and further development requires efforts at the level of governments, financial institutions, investors and the public, the author emphasises the need to focus on promoting the development of a sustainable financial system, which will further contribute to solving environmental problems and achieving sustainable development goals. The author also touched upon the factors that influence the degree of development of “green” finance in different countries of the world and noted that in developed and developing countries there is a striking contrast in the use of “green” financial instruments and it is natural. It is undeniable that “green” financial instruments are a significant help in solving the problem of concentration of financial resources for active implementation of green economy principles. Consequently, governments are taking all measures to stimulate green capital to accelerate the achievement of sustainable development goals.

Розвиток цифрових інновацій на ринку кредитних послуг України

Digital technologies nowadays play a key role in the development of the entire financial system of the country. The consequences of such influence are especially noticeable in the sphere of functioning of banking and non-banking institutions. These financial intermediaries are precisely the ones who today actively attract, create and use information and communication innovations in their own activities, allowing them to improve the quality of services provided to their clients and ensure the growth of the efficiency of their own activities. The article analyzes the role of modern innovations, primarily in the sphere of digitalization of financial relations, in the development of the market of credit services of Ukraine. The main attention is focused on deepening the theoretical provisions of the functioning of such a market in the new conditions – with the active development of information and communication technologies. Thus, the question of the role of information innovations in the processes of transformation of the credit services market is considered. Also, significant attention is paid to the issues of separation and specification of the role of individual credit innovations in the development of relations between credit institutions and their customers. In the article, such innovations primarily include p2p lending, remote servicing and functioning of neobanks; the essence of these new directions of development of the credit services market is considered and the peculiarities of their use by credit entities are described. It is determined that digital technologies already play a key role in the development of relations between lenders and borrowers in Ukraine. The results of the carried out analysis confirm the assumption that such technologies will be actively used by banking and non-banking institutions in the future. At this, it can definitely be argued that the level of application of information and communication technologies by these institutions will only grow in the future, taking into account new promising directions of their application in the sphere of financial services.

Current status of green finance in Kazakhstan

The article examines the development and formation of green finance in Kazakhstan. It is noted that green finance is now becoming an integral component of achieving global and national sustainable development goals and the formation of a green economy, defining new environmentally sustainable contours and prospects for the development of the international financial system through the active growth of the «green» segment of the global financial market and responsible investment. Financial and economic instruments in the «sphere» of green economy, specifics of formation of ?green? finance in the country, as well as factors impeding their development are analyzed. The article analyzes the current state of «green» finance in Kazakhstan, identifies the problems of «green» finance.

СОВРЕМЕННАЯ СПЕЦИФИКА РАЗВИТИЯ ФИНАНСОВЫХ УСЛУГ В ЭКОНОМИЧЕСКОЙ СИСТЕМЕ

The main purpose of the scientific research is defined, which is to characterize the main specific signs of the development of the financial services sector in the economic system, which are particularly acute in the conditions of integration into the economic world space against the background of the structuring of the market of goods and services. Definitely at this stage of scientific research, the object is the financial services sector. The subject of scientific research is the modern specifics of the development of financial services in the economic system, taking into account the innovative transformation of the economy as a whole. Scientific novelty is objectively conditioned by the development of theoretical foundations and scientific and methodological provisions on the formation of characteristic features of modern financial services in the economic system. By reviewing scientific reports, scientific publications and expert opinions, specific signs of the current stage of development of financial services, taking into account digital transformation, are formulated. When forming a list of specific signs of the development of the service sector at the present stage of the development of financial and economic systems, the strategic directions of financial policy and banking policy, which is carried out by the state, are highlighted.

Green finance: A solution towards green growth in Vietnam

Vietnam is making efforts and commitments to sustainable development and minimizing the impacts of climate change. However, Vietnam's National Green Growth Strategy for the period 2011-2020 had not achieve the expected results. One of the reasons that can be seen is financial limitations for implementing projects, especially green projects. Green finance has been applied by many countries around the world. In Vietnam, the legal framework on green finance has also begun to be built, such as the "Scheme for pilot issuance of green bonds by local governments", "Scheme for developing green banks in Vietnam", Law on Environmental Protection 2020. However, this tool still seems not to be well considered, and there are still some barriers in Vietnam to promoting the role of green finance. Based on the analysis of several national and international literatures on green finance, this study has summarized and proposed some recommendations to support the development of the green financial system in Vietnam. The main solutions proposed to the Vietnamese Government (especially the role of the State Bank) include policies related to the legal framework, risk assessment, financial mobilization, and reasonable monetary and fiscal policies combined with new capital mobilization models and new technology (such as blockchain). The article also identifies challenges in implementing green finance in Vietnam in the coming time.

Financing a Sustainable Economy in Hungary, Opportunities and Challenges: Decarbonisation, Green Transition, Sustainable Finance, Central Bank

Today’s prolonged crisis situations, such as the Covid-19 pandemic, the Russian-Ukrainian conflict, and the energy and climate crisis call for climate neutrality in Hungary, although they make transition difficult in the short term. A number of studies suggest that Hungary will be able to reach the target by 2050 at the latest, and that the benefits, on the whole, will outweigh the macroeconomic sacrifices. Nevertheless, green transition, including the Hungarian economy, requires a huge amount of investment and financing, which makes it necessary to involve the private sector, and which central banks can assist effectively. Fortunately, a variety of solutions to finance green and sustainable investments have emerged recently, although we are still at the beginning of the process. The Central Bank of Hungary (Magyar Nemzeti Bank, MNB) has taken a number of measures – and is planning to take further ones – to promote green finance in Hungary, which, in addition to the development of a sustainable financial system will contribute to Hungary’s transition to an environmentally sustainable economy.

Interbank complex network and liquidity creation: Evidence from European banks.

Liquidity creation, as a core functions of banks, affects the stability of the financial system and economic development significantly. However, the existing literature has largely ignored the impact of complex interbank linkages on liquidity creation. This may distort the understanding of liquidity creation away from its essence to some extent in the context of an increasingly interconnected financial system. Using a sample of 1406 banks from 29 European countries during 2010-2021, we use a complex network to model the interbank market and study its impact on liquidity creation. Our results indicate that dominant borrowers in the network create less liquidity as a result of their more prudent liquidity management. Higher bank capital weakens this negative relationship due to its risk-absorbing capacity. Conversely, dominant lenders in the network create more liquidity because of their more optimistic expectations and more lax liquidity management. Higher non-interest income weakens this positive relationship because of the higher risk of non-traditional business, which requires banks to hold more precautionary liquidity. Moreover, we test for endogeneity and use the full sample to verify the robustness of our results.

An Analysis of Financial System Development and Banking Sector Performance in Nigeria

The study assessed the impact of financial system development on the banking sub-sector performance in Nigeria by using indices representing financial access, financial efficiency and financial depth as its explanatory variables. The proxy used for banking sector performance is the capital adequacy ratio. Due to the paucity of high-frequency data for the relevant variables, the study converted the sourced annual data spanning from 2004 to 2021 to monthly data. The preliminary data investigation indicated that the ARDL model is appropriate for the analysis. An ARDL-ECM model was then estimated using the Ordinary Least Square estimation technique. The results reveal that the financial market’s activities are significant determinants of banking performance in Nigeria. The paper recommends that making the capital market and other non-bank institutions more attractive to investors should be a priority policy

New Issues in Bank Regulation (The Quaid-i-Azam Memorial Lecture)

Deregulation, technology, and financial innovation are transforming banking. Indeed, banking is no longer the business it was even a few decades ago. The way banking services are provided has changed dramatically, and in many countries they are even offered by institutions that are quite different from traditional banks. As the old institutional demarcations become increasingly irrelevant, increased competition from other intermediaries has led to a decline in traditional banking in which banks took deposits and made loans that stayed on their books to maturity. Banks thus have been moving rapidly into new areas of business. In this evolving financial environment, the international banking community and the Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) are currently wrestling with pinning down an appropriate regulatory framework. The regulatory response to these changes has been a move away from the increasingly ineffective command-and-control regulations to greater reliance on assessing the internal risk-management systems, the supervision of banks, and more effective market discipline. In the language of the New Basel Accord, this represents a shift in emphasis away from capital-adequacy rules toward supervision and market discipline. This paper provides an overview of the profound and rapid changes brought about by technology and deregulation, and discusses the hurdles that will have to be negotiated for putting in place a suitable regulatory framework. On the one hand, inadequate resolution of these challenges will create the wrong incentives and lead to banking fragility. On the other hand, overregulation carries the danger that it will retard the development of national financial systems, hinder the best use of available domestic savings, prevent countries from accessing international capital, and ultimately lead to slower growth. Developed financial systems are being challenged by the shift in regulatory focus, and the definition and implementation of appropriate regulatory standards is encountering substantial difficulties. Finding the right balance between regulation, supervision, and reliance on market discipline is likely to be even more difficult in developing and transition countries.

Внутрішні фактори розвитку державного фінансового моніторингу України

In the article, based on the results of the study of the main regulations for the development of financial monitoring, the internal factors of the state financial monitoring of Ukraine and their impact on the efficiency of the financial monitoring service are determined. It has been established that among the main areas of activity of the State Financial Monitoring Service, a significant area is the selection of personnel and the organization of work on the training and improvement of the qualifications of employees. Considerable attention is paid to the system of employee motivation, as one of the main factors in the development of the State Financial Monitoring System of Ukraine. The objective necessity of using not only material, but also moral stimulation of civil service workers in the motivation system is substantiated. The need to create an effective employee motivation system that would contribute to the effective development of the State Financial Monitoring Service was proven. When improving the institution's motivational strategy, it is suggested to take into account the principles of behavioral economics, which are based on the characteristics of irrational employee behavior and psychological features of human perception.

Strategi Pemerintah Daerah Provinsi Papua Barat Dalam Meningkatkan Kontribusi Pendapatan Asli Daerah Terhadap Anggaran Pendapatan Dan Belanja Daerah Periode 2016-2020

This research study aims to detail the strengths and strategies of the West Papua Provincial Government. The Independence Ratio Analysis used is the analysis used in the implementation of this research. While the SWOT analysis in this study is to develop the best. The results of this study indicate that Financial Independence sourced from the Regional Original Income of West Papua Province is in the very low category. The problems include the limited ASN resources in public services, inadequate facilities and infrastructure, insufficient multiplication of capabilities from local revenue owned; development of an inefficient regional financial management information system

STRATEGI PEMERINTAH DAERAH PROVINSI PAPUA BARAT DALAM MENINGKATKAN KONTRIBUSI PENDAPATAN ASLI DAERAH TERHADAP ANGGARAN PENDAPATAN DAN BELANJA DAERAH PERIODE 2016-2020

This research study aims to detail the strengths and strategies of the West Papua Provincial Government. The Independence Ratio Analysis used is the analysis used in the implementation of this research. While the SWOT analysis in this study is to develop the best. The results of this study indicate that Financial Independence sourced from the Regional Original Income of West Papua Province is in the very low category. The problems include (1) the limited ASN resources in public services; (2) inadequate facilities and infrastructure; (3) Insufficient multiplication of capabilities from local revenue owned; (4) Development of an inefficient regional financial management information system

Pengaruh Return On Asset (ROA) terhadap return saham syariah dengan struktur modal sebagai variabel moderasi pada perusahaan manufaktur sektor industri barang konsumsi yang terdaftar di indeks saham syariah Indonesia periode 2015-2019

Along with the development of the Islamic financial system, the capital market has developed into an Islamic capital market that offers an attractive alternative compared to its conventional industry, which still relies on usury as its basic foundation. At the close of trading at the end of 2019, the shariah stock index recorded a higher growth than the Composite Stock Price Index (IHSG). The purpose of this study was to determine the effect of ROA on Shariah Stock Returns and the effect of Capital Structure in moderating the relationship between ROA and Shariah Stock Returns. The theories used in this research include Signalling Theory. The object in this study is a manufacturing company in the consumer goods industry which is listed on the ISSI. The technique of collecting data is by collecting secondary data in the form of stock price information and company annual financial reports. The sampling technique is a non-probability sampling technique with a purposive sampling method. The data analysis technique for testing this research is Moderated Regression Analysis (MRA) using the SPSS application. Based on the research conducted, it is found that Return on Assets has a significant effect on Shariah Stock Return in a positive direction. An increase in ROA can have an effect on increasing Stock Returns, and vice versa. Capital Structure is unable to moderate the relationship between ROA and Shariah Stock Return.

Modernization of the system of state financial control in Ukraine

Introduction. State financial control contributes to the development of the state's economy, ensures a fair distribution of its national income, financial stability and national security, which is achieved through effective and rational management of state finances. Existing problems and contradictions in the field of state financial control have a negative impact on its effectiveness and significantly restrain the development of the state's financial system in general. The purpose of the paper is to study the problematic issues of the state financial control system in Ukraine and to find directions for its improvement and strengthening in modern conditions. Results. Among the main shortcomings of the functioning of state financial control, it is possible to highlight the lack of a single regulation for the implementation of internal and external state financial control at the levels of the budget system, excessive formalization of internal control procedures, the lack of connection between the results of the assessment of the quality of financial management and internal state financial control, the difficulty of ensuring functional independence and organization of internal audit work in conditions of personnel and financial restrictions, weak orientation to systemic work aimed at reducing budgetary risks. Successful functioning of the state financial control system is possible if the principle of risk-orientation is observed. A risk-oriented approach in the state financial control system should be aimed at: establishing strategic goals in risk management; use of own and external quality data when making management decisions; the relevance of indicators of the effectiveness of control activities within the framework of state financial control, which can be achieved by balancing quantitative and qualitative indicators. Conclusion. The proposed measures to improve state financial control will allow for the formation of a unified approach to its planning and implementation, which will ensure a more effective and in-depth implementation of control measures, which will allow to focus the attention of authorized control bodies on the subjects of control, which are the most problematic. It is obvious that improving the effectiveness of state financial control can be achieved with the help of audit and analytical measures aimed at coordination and systematic information exchange between financial and control bodies regarding the implementation of budgets at different levels.

Мecтo финтеха в новой траектории развития мировых финансовых рынков

The article reveals the essence of financial technologies as the introduction of innovative development. It is concluded that in the course of observation there are new cases of accelerated development of the Russian financial system. The review of small financial technologies is carried out. The features of the development of the Russian fintech market are revealed.