Regional Financial Center Research Articles

Bank competition, government interest in green initiatives and carbon emissions reduction: An empirical analysis using city-level data from China

Finance plays a pivotal role in the transition to a sustainable economic development model. In China, the banking sector, a key component of its financial landscape, operates within an increasingly competitive environment, exerting profound effects on the efficient allocation of resources. This paper employs instrumental variables regression and text analysis techniques to meticulously examine the impact of bank competition on carbon emissions and elucidate the underlying mechanisms. We also investigate the synergistic influence of government engagement in green initiatives and bank competition on carbon emissions reduction, drawing insights from data encompassing Chinese cities during the years 2006 to 2019. Our empirical analysis unveils a significant carbon emissions reduction effect resulting from bank competition. This effect is primarily driven by the facilitation of green innovation and the promotion of manufacturing servitization. Notably, this impact is more pronounced in cities that are not dependent on resource extraction and those situated outside regional financial centers. Additionally, the level of government interest in green initiatives amplifies the carbon reduction effect of bank competition. This paper contributes to the enhancement of the banking market structure, aligning it with eco-friendly development goals.

О субъектах правоотношений в сфере повышения финансовой грамотности и формирования финансовой культуры

The article presents the subjective characteristics of the Catalog of best practices for implementing the Strategy for Improving Financial Literacy in the Russian Federation for 2017–2023. Groups of participants in the relevant legal relations have been identified and a conclusion has been drawn about their relevance in activities to create a financial culture. In order to achieve the indicators of the Strategy for Improving Financial Literacy and Forming the Financial Culture of the Population until 2030, it was proposed to unify the names, forms of organization and status of regional financial literacy centers.

World financial centers: features of functioning

The article is devoted to the study of the essence, types, and stages of development of world financial centers. The work states that the globalization of the financial sphere, which is expressed in the growth of the transfer of assets, internationalization of systems, liberalization and convergence of markets, leads to the formation of a single world financial market, where international financial centers play a key role. Since the end of the 20th century, world financial centers have become an integral part of the global financial market, where surplus capital from countries where its over-accumulation led to a decrease in profits was exported. World financial centers are not just a cluster of financial institutions, but also a dynamic system where all participants constantly and actively interact with each other. The work analyzed the approaches of scientists to the definition of the concept of «world financial center» and summarized these approaches into one definition. The world financial center is where financial institutions are concentrated, contributing to the attraction and redistribution of financial resources. It was revealed that in order to form a world banking center, a country must have a stable currency and economic situation, a developed credit system, well-organized stock exchange activity, moderate taxation, a convenient geographical location, relative stability of the political regime, the presence of standardization and a high degree of information technology without paper transactions. Three key areas that determine the success of global financial centers in competition are singled out: image and communication capabilities, a wide range of financial services and professionalism. Three stages of the development of global financial centers are distinguished – the development of the local market, the transformation of the local market into a regional financial center and the formation of an international financial center. The five largest world financial centers are characterized and their features are highlighted. The methodological basis of the research is general scientific methods of scientific knowledge: analysis and synthesis, generalization, and comparison. The informational basis of the article is the publications of domestic and foreign economists.

РЕГИОНАЛЬНЫЕ ФИНАНСОВЫЕ ЦЕНТРЫ РОССИЙСКОЙ ИМПЕРИИ ВО ВТОРОЙ ПОЛОВИНЕ XIX — НАЧАЛЕ XX ВЕКА

This study addresses the hierarchy of financial centers in the Russian Empire, which are evaluated via the volume of lending and money settlements in commercial banks. The study is based on balance sheet statistics of commercial banks for 1874, 1897, and 1913 as well as statistics on transfers between branches of the State Bank of the Russian Empire for 1868, 1878, 1888, and 1898. The settlements between these branches are visualized on geographical maps. The study proves that only St. Petersburg and Moscow had the status of national financial capitals, and they had a significant share of the financial system. In the Russian Empire, there were a few regional financial centers that always reached the top ten by sum of lending and number of transfers: Odessa, Kiev, Riga, Rostov-on-Don, and Kharkov. Warsaw and Nizhny Novgorod were close to making this list, although they do not meet all the criteria used in the present study. The hierarchy of smaller regional financial centers was volatile due to variance in the rates of regional development. However, the share of metropolitan and large regional centers gradually decreased due to the growth of operations in many ordinary regional centers. Thus, an important trait of Russian financial development was not the concentration of credits and settlements in the leading centers but rather their diversification across an increasing number of regional centers, which is undoubtedly a sign of the increasing influence of the financial system on the economic development of the empire.

An integrated CoCoSo-CRITIC-based decision-making framework for sustainable competitiveness evaluation of regional financial centers with interval-valued intuitionistic fuzzy information

Due to the increasingly strengthened role of finance in modern economic development, theoretical research on regional financial competitiveness in the study of regional economic competitiveness becomes very important. For China at this stage, finance is in a period of rapid development, and its role has penetrated into all aspects of social and economic life. Especially after China’s entry into the WTO, the pace of opening up the financial market has been further accelerated, and comprehensive evaluation and analysis of financial competitiveness is of great significance for comprehensively understanding and accurately grasping China’s national conditions, national strength, and international competitiveness, promoting the long-term growth of China’s financial competitiveness, and the sustainable development of the financial industry. The competitiveness evaluation of regional financial centers is looked as the multiple attribute decision-making (MADM) problem. This paper intends to propose a MADM methodology based on CoCoSo (Combined Compromise Solution) method under interval-valued intuitionistic fuzzy sets (IVIFSs) for sustainable competitiveness evaluation of regional financial centers. At the end of this study, we noticed to a comparison between the proposed IVIF-CoCoSo approach with other existing methods to verify the effectiveness of the algorithm.

Sustainable competitiveness evaluation of regional financial centers with fuzzy number intuitionistic fuzzy TODIM algorithms

The competitiveness evaluation of regional financial centers is frequently looked as the multiple attribute group decision-making (MAGDM) problem. Based on the TODIM method and fuzzy number intuitionistic fuzzy sets (FNIFS), this paper proposes a new FNIF-TODIM method to evaluate the competitiveness of regional financial centers. First, some basic theories related to FNIFS are briefly introduced. In addition, the weights of the attributes are obtained objectively using the CRITIC weighting method. Then, the traditional TODIM method is extended to FNIFS to obtain the final order of alternatives. As a result, all alternatives can be ranked and the best one for the competitiveness assessment of regional financial centers can be identified. Finally, an example for competitiveness evaluation of regional financial centers and some decision comparative analysis is listed. The results show that the established algorithmic approach is useful. The main works of this work are: (1) the paper constructs the FNIF-TODIM method for the evaluation of the competitiveness of regional financial centers; (2) the established method is illustrated by a case study for competitiveness evaluation of regional financial centers; and (3) some comparisons prove the rationality and advantages.

РАЗВИТИЕ ГОСУДАРСТВЕННЫХ ФИНАНСОВ В КОНТЕКСТЕ УКРЕПЛЕНИЯ ФИНАНСОВОГО СУВЕРЕНИТЕТА РОССИИ

The goal of the article is to assess the state of achieving financial sovereignty in Russia and formulate a list of key areas for strengthening financial independence and financial sovereignty. Financial sovereignty is the ability of a state to pursue independent domestic and foreign financial policies. It is ensured by financial security at all levels of management and in all spheres of socio-economic life. This article defines the differences between the concepts of financial independence and financial sovereignty. The level of financial sovereignty is analyzed and directions for strengthening financial independence and financial sovereignty are formed. The key factors for strengthening financial sovereignty include strengthening financial independence within the country and solving problems to strengthen financial sovereignty on the world stage. To strengthen financial sovereignty, it is necessary to take into account the variety of factors influencing it. It is necessary to continue work to strengthen financial independence within the country and financial sovereignty on the world stage, to complete the formation of regional financial centers that allow their member countries to pursue an independent financial policy; completion of the search for new forms of payment in international trade (creation of an accounting and settlement currency independent of the dollar and euro), to develop a mechanism that allows finding a balance between the financial sovereignty of countries included in new regional blocs and the degree of its limitation, taking into account the negative experience of the European Union.

Assessment of the possibility of forming a regional financial center in a federal subject of the Russian Federation

The article discusses the importance of the financial market in ensuring sustainable growth of the Russian economy and the problem of the formation of regional financial centers in the federal districts of Russia. The hypothesis is put forward that a regional financial center can be created in each of the federal districts of Russia. A system of indicators reflecting the potential of the financial market and its branches of specialization is formulated - financial services (assets of credit institutions registered in the region; number of broker clients in the subject of the federation; assets of broker clients in the subject of the federation) and insurance (number of insurance contracts concluded in the subject of the federation; insurance amounts under insurance contracts concluded in the subject of the federation). For each federal district, based on the Atlas of Economic Specialization of regions, a representative information array has been formed and a methodology for ranking the subjects of the Russian Federation by indicators characterizing the financial market has been developed. A rating of the subjects of the federation has been compiled in each federal district, if possible, to create a regional financial center on the basis of this subject of the federation.

Showpiece City: How Architecture Made Dubai

Showpiece City: How Architecture Made Dubai

Финансовая инфраструктура развития Дальнего Востока России: эффективный ответ на кризис 2022 г.

For many years, the scientific community has been discussing the prospects for creating an international financial center in the Russian Far East. Intensive socio-economic development of the macroregion was planned, as export-oriented and based on the outstripping growth of foreign investment. Special legal regimes for doing business should have significantly increased the investment attractiveness of the Russian Far East for investors from the Asia-Pacific region. Russia’s financial infrastructure at the macrolevel was ready to process a much larger volume of foreign investment than entered the Russian economy. The developed exchange market of stocks, bonds, foreign exchange, commodities, and derivatives was to take an active part in the transformation of portfolio investments into direct investments. Banks, subsidiaries of Japanese, South Korean and Chinese financial institutions, were developed in the Russian Far East. Business practices and corporate procedures aimed at aligning the interests of foreign investors and Russian corporations were improved. However, the political crisis of 2022, associated with the introduction of international sanctions against the Russian financial infrastructure, crossed out plans to create such a center. A fundamentally new research task has appeared – to justify the creation of a regional financial center that would ensure the advanced socio-economic development of the Russian Far East with the entire range of financial infrastructure services in the absence of systemic interaction with foreign financial organizations. This task involves understanding what mechanisms should be created and on what principles this center should function, which financial instruments and corporate mechanisms from the existing ones can be used at the stage of its launch

China’s Opening-up Strategy in the Milieu of Belt and Road Initiative (BRI)

The Chinese economy is changing its development model from invest/export-led growth to consumption/growth driven by domestic demand. In the recent domestic-oriented growth phases of China's opening-up policy, what role is expected to play? Not only is this a way to acquire foreign exchange and technology, but it is also an economic powerhouse for China that strengthens its position in global governance. General Secretary Xi Jinping's proposed the "Belt and Road" initiative in 2013, which is considered an excellent strategy for China's new round of opening-up policy. This research paper aims to bring the BRI inside China's open-up policy and focuses on its increasingly important role in controlling major global economic regimes. The study also shows the importance of establishing systems of mutual aid/funding for the countries participating in BRI. The first section of the paper looks at China's reactions to major economic regimes. Section two reflects the design and the implementation of the opening-up strategy for China from the BRI perspective. Section three of the research addresses Chinese development aid/funding in the BRI and its relation to foreign regimes. The fourth part addresses the BRI's trade relationship with the participating countries, using the gravity model from a global commercial perspective. The study concluded that cross-border financial cooperation between government and business participants is vital for the development of a successful investment and funding system for the BRI. It reiterated the importance of using foreign and regional financial centers to develop a regional structure within the BRI's investment and financing system.

OPERATION OF INTERNATIONAL FINANCIAL CENTERS DURING THE PANDEMIC

The rapid spread of coronavirus (COVID-19) has dramatic impacts on financial markets all over the world. It has created an unprecedented level of risk, causing investors to suffer significant loses in a very short period of time. This paper aims to map the general patterns of country specific risks and systemic risks in the global financial markets and financial markets. It also analyses the potential consequence of policy interventions, such as the US decision to implement a zero-percent interest rate and unlimited quantitative easing (QE), and to what extent these policies may introduce further uncertainties into global financial markets. This paper highlights the enormous economic and social impact of COVID-19 with respect to articles that have either prognosticated such a large-scale event, and its economic consequences, or have assessed the impacts of other epidemics and pandemics. A consideration of possible impacts of COVID-19 on financial markets and institutions, either directly or indirectly, is briefly outlined by drawing on a variety kinds of literatures. A consideration of the characteristics of COVID-19, along with what research suggests have been the impacts of other past events that in some ways roughly parallel COVID-19, points toward avenues of future investigation. This paper offers an informed commentary on the actual and potential impacts of the pandemic on financial markets, sector and centres, grounded in literature on financial centres, the state-finance nexus, and trends affecting the landscape of finance since the global financial crisis. We expect a slowdown in new financial regulation, continued firm-level consolidation, and a continued rise of business services related to finance. The application of new financial technologies is likely to accelerate, affecting retail banking in particular, but will not necessarily be led by FinTech firms. Local and regional financial centres are likely to face larger challenges than leading international centres. As the panic and partial recovery in financial markets in March and April 2020 highlighted the significance of the international monetary hierarchy, with the US$ in the lead, a radical shift of financial power to Asia seems unlikely.

Mathematical statistics of regional financial spatial spillover effect based on spatial dubin model

How to correctly use the spatial measurement model to analyze the differences, causes, and influencing factors of regional finance, and to establish corresponding development strategies to keep the regional financial differences in an ideal state is one of the problems that the current regional financial development needs to face. Based on the spatial Dubin model (SEM), spatial Dubin error model (SDEM), generalized spatial Dubin model (GSAM), etc. in the spatial measurement method, this paper compares the actual effects of different models, and combines the machine learning algorithm to improve the model algorithm, and intelligently analyzes the spillover effects of regional financial space. After constructing the model, this paper takes area A as an example to analyze the spillover effect of regional financial space through the model constructed in this paper. In addition, this paper conducts an empirical analysis on the influencing factors of regional financial development and proposes corresponding strategies to provide support for the construction of regional financial centers.

Analysis of the Status Quo of Changsha's Regional Financial Center

Analysis of the Status Quo of Changsha's Regional Financial Center

COVID-19 and Finance: Market Developments So Far and Potential Impacts on the Financial Sector and Centres.

This paper offers an informed commentary on the actual and potential impacts of the pandemic on financial markets, sector and centres, grounded in literature on financial centres, the state‐finance nexus, and trends affecting the landscape of finance since the global financial crisis. We expect a slowdown in new financial regulation, continued firm‐level consolidation, and a continued rise of business services related to finance. The application of new financial technologies is likely to accelerate, affecting retail banking in particular, but will not necessarily be led by FinTech firms. Local and regional financial centres are likely to face larger challenges than leading international centres. As the panic and partial recovery in financial markets in March and April 2020 highlighted the significance of the international monetary hierarchy, with the US$ in the lead, a radical shift of financial power to Asia seems unlikely.

The origins of the Asia dollar market 1968–1986: regulatory competition and complementarity in Singapore and Hong Kong

Offshore financial centres have attracted considerable critical attention over the past few decades as havens for lightly taxed funds that circulate outside the regulatory oversight of major financial centres. This article addresses the emergence of an offshore market in US dollars in Singapore from the late 1960s using a range of archival sources to identify the motivations of the host, participant banks and regional rivals. The development of the Asia dollar market is particularly striking because Singapore was not the most likely venue for an Asian offshore financial centre. The main regional financial centre was Hong Kong, but the Hong Kong authorities made a deliberate choice not to host an offshore market in Hong Kong, a decision that was initially supported both by the state and by incumbent banks, although the banks later changed their view as the Singapore market grew. This case thus opens up discussion of the influence market actors exert over regulators when they are engaged in regulatory arbitrage as well as regulatory competition between states. Evidence is also presented about the efforts of the Bank for International Settlements to encourage greater transparency in offshore financial centres in the 1980s.

The Changing Geography of Domestic Financial City Network in China, 1995–2015

AbstractBased on longitudinal office distribution data on top domestic financial enterprises, this study explores the evolution of China's financial city network in the last two decades by means of a social network analysis. The position of each city in financial city network is evaluated from two aspects which are external financial resources attraction and headquarters financial development based, respectively, on urban weighted indegree and urban weighted outdegree. Taking these two aspects together, the top echelons of the financial city network can be regarded as potential national or regional financial centers. Furthermore, by means of a panel data regression analysis, determining factors of financial city network evolution are explored from perspectives of location, institution, and social‐economy. We find that most cities have witnessed significant changes in city position, especially in terms of external financial resources attraction, and the influencing factors of financial development vary by region due to the disparities in regional financial development environments.

The Planning and Construction of a Regional Financial Center: Financial Structure

The construction of regional financial center can gather a large amount of financial production elements and capital, which plays an important role in promoting regional economic development. Based on this, the analysis of the planning and design of regional financial center based on the financial structure was studied. Firstly, the research progress of regional financial center and financial structure was expounded. Then, on the basis of the functional demand of the financial center, the planning and design method of the regional financial center was put forward. The regional center building in Nanjing was taken as an example, and the specific planning and design of the traffic, super high-rise landmark buildings, squares and other buildings were analyzed with the advantage of location. The research shows that the design and planning of the regional financial center can provide the new coordinates of globalization for the local finance.

The Future of Asian Finance

The of Asian Finance. Edited by Ratna Sahay, Jerald Schiff, Cheng Hoon Lim, Chikahisa Sumi and James P. Walsh. Washington, D.C.: International Monetary Fund, 2015. Pp. 310. In a single reference volume, The of Asian compiles the results of the research and policy seminars conducted by the International Monetary Fund (IMF) under its Future of Asia's Finance project from 2013 to 2015. This edited book is comprehensive both in terms of the scope of issues covered--ranging from banking, capital markets, demographic shifts, regional financial centres, regional integration, the evolving global regulatory environment, etc.--as well as the depth of original research analysis of these issues. The IMF's global perspective affords a certain objectivity in pointing out current weaknesses in Asian financial markets and institutions versus the significant tasks in financing growth in the region. Part I: The Structure of in highlights many similarities shared by Asia's financial sectors. The book is replete with regional and cross-country quantitative factoids which adds to its value as a handy reference work. While Asian countries have led the global economy in terms of growth, many countries face challenges from shifting demographics, weaker external demand for exports, and major infrastructure bottlenecks. The editors take the view that given the tasks of more efficient mobilization of savings, financing investments in human and physical capital, and deepening capital markets, financial sectors in Asian countries will have an important role in facilitating the economic transformation of Asia and become themselves engines for growth. The study observes that Asia as a whole a large financial sector comparable to other regions, and considerably larger than their peers outside (p. 10). However, the evolution of Asian financial sectors must address existing realities and vulnerabilities if they are to continue to support financing the requirements of growth. Banks dominate the financial sectors in emerging Asia. They have generally been well capitalized and relied on traditional deposit taking and loan origination rather than and investment banking (Chapter 2). This contributed to the resilience of the Asian financial sectors during the Global Financial Crisis (other factors that enhanced resiliency were the policy measures compelled by the Asian financial crisis to strengthen the regulatory and supervisory framework for corporate governance, penalties for unsafe and unsound banking practices, the early adoption of macro-prudential measures and the shift to more flexible exchange rates (p. 9)). Financial intermediation by banks, however, has relatively higher costs and will face additional constraints due to Basle III capital and liquidity standards (Chapter 11). Bank financial intermediation needs to be augmented by efforts to hasten the further development of capital markets. While capital markets in Asia have achieved notable growth, they have generally lagged behind their counterparts in peer regions. Equity and bond markets remain underdeveloped and illiquid in part due to the paucity of real money and long-term institutional investors (p. 9). Stock markets in Asia are an important source of fund raising but are constrained by the idiosyncratic nature of pricing in these markets (pp. 43, 46). The research conducted for the book, using an arbitrage pricing model of market returns, identifies pricing behaviour consistent with noise trading and emphasizes the importance of improving securities regulations to enhance investor confidence (p. …

IMPROVING CHINA’S REGIONAL FINANCIAL CENTER MODERNIZATION DEVELOPMENT USING A NEW HYBRID MADM MODEL

The regional financial center is the propeller of regional economic development. Regional financial center modernization, however, has been the predominant propulsion of economic sustainability. Decisions related to regional financial center modernization development are in­herent problems of multiple attribute decision-making (MADM), and strategically important to the government. The purpose of this paper is to set up a regional financial center improvement model for modernization development, as based on a hybrid MADM model, which addresses the main causal-effect factors and amended priorities in order to strengthen ongoing planning. This paper adopts a new hybrid MADM model combined with the DEMATEL technique to construct an influential network relationship map (INRM) and determined the influential weights of DANP. Then, a modified VIKOR method using influential weights is applied to measure and integrate the performance gaps from each criterion into dimensions, as well as the overall criterion for evaluating and improving the modernization development of the regional financial center, as based on INRM. Finally an empirical case study using data from the Guangzhou regional financial center is carried out as an example to demonstrate the suitability of the proposed hybrid MADM model for solving real-world problems. The results show the priorities for improvement, as based on the degree of the effect and impact of the dimensions, as follows: first is making “government policy”, second is enforcing “financial infrastructure and safety”, next is formulating “financial institutions and human resources”, and finally “financial service”.