Stability Of Financial System Research Articles

Corporate Governance, Liquidity Risk, and Sustainable Growth Rate in the Nigerian Banking Industry

Purpose: The objective of this study was to investigate the impact of board independence, liquidity risk management, and other bank-specific factors on the sustainable growth rate of banks in a developing country.      Theoretical framework: The study relied on two major theories: the Agency Theory, which explored the conflicts of interest between owners and managers, and the Resources-based View Theory (RBV), which examined how banks utilised unique resources to achieve competitive advantages and sustain growth.   Design/methodology/approach: The study analysed panel data from twelve banks listed on the Nigerian Stock Exchange from 2008 to 2021. This study utilised the Feasible Generalised Least Squares (FGLS) regression technique, chosen for its effectiveness in addressing serial correlation and heteroskedasticity, to examine the effect of various factors on the sustainable growth rate.   Findings: The study found that the sustainable growth rate (SGR) of banks was significantly affected by the interaction between corporate governance variables and factors such as liquidity risk, dividend payout ratio, bank size, asset quality, and operating margin. Additionally, board independence and bank performance may not be enough to ensure a bank’s resilience in volatile conditions.   Research, Practical & Social implications: The study illuminated previously neglected factors that affect the sustainable growth rate of banks. Bank boards and policymakers can utilise these insights to enhance governance structures, risk management practices, and regulatory frameworks. This enhanced comprehension can contribute to a more stable financial system, improving public confidence and economic stability.   Originality/value: This study addresses a notable research gap by examining the influence of board independence and bank-specific factors on the sustainable growth rate of banks. Prior research has predominantly focused on the non-financial services industry, leaving this area understudied.

Bank liquidity hoarding and bank systemic risk: The moderating effect of economic policy uncertainty

In this article, we use panel data from 457 listed banks in 20 countries to investigate the impact of bank liquidity hoarding on systemic risk in the banking sector and discuss it under the condition of economic policy uncertainty (EPU). Empirical evidence suggests that when banks' liquidity hoarding increases, their systemic risk contribution decreases significantly. Furthermore, we demonstrate that bank liquidity hoarding works through the channel of improving bank operational stability and reducing bank asset risk. In addition, during a period of high EPU, bank liquidity hoarding has a more significant effect on reducing systemic risk. Our results remain stable after a battery of robustness checks. Heterogeneity analysis indicates that the role of bank liquidity hoarding in reducing systemic risk is more significant in larger banks and banks in developed countries. Moreover, this effect is particularly pronounced when there is an accommodative monetary policy environment. Our study has some important implications for policymakers and regulators. Previous research suggests that policymakers may consider encouraging the banking sector to actively create liquidity instead of hoarding it, as this could lead to higher economic output. However, from the perspective of financial stability, banks' liquidity hoarding can help reduce their systemic risk contribution, especially in periods of high external uncertainty. Therefore, policymakers need to evaluate bank liquidity hoarding behaviour more comprehensively, and strike a balance between promoting economic growth and ensuring financial system stability to maximize overall welfare.

Does Foreign Direct Investment Affect Financial Stability in Developing Countries: The Nigerian Experience

The relationship between Foreign Direct Investment (FDI) and financial stability is of increasing concern among economies. The volume and structure of FDI can affect the financial system's stability. This study examines the effect of FDI on financial stability in Nigeria between 2003:1 and 2019:4. The data were subjected to a stationarity test using the Augmented Dickey-Fuller test, and the test result shows that all variables were integrated in the order of 1. The Johansen cointegration test result showed a long-run relationship between all the dependent and independent variables. The hypotheses were tested using Error Correction Mechanism (ECM). It was found that the short runs deviations will adjust to their long-run equilibrium by 17.3% quarterly. The findings show that FDI as a percentage of GDP positively affects Nigeria's financial stability. In contrast, FDI as a percentage of fixed investment and net FDI have a significant negative effect on Nigeria's financial stability. The study, therefore, concluded that inflows of FDI play a significant role in the Nigeria’s financial stability. Based on the findings, the study recommends that authorities such as Ministry responsible for trade, commerce, and investment create an enabling investment environment such as regulations for protecting investors interests to attract FDI into the system.

Pengaruh Kebijakan Restrukturisasi Pembiayaan dan Tingkat Efisiensi Terhadap Stabilitas Sistem Keuangan Bank Syariah Di Indonesia dengan Ukuran Perusahaan Sebagai Variabel Kontrol (Study Kasus Pada Saat Pandemi Covid 19 Tahun 2019-2021)

The financial system in a country is a very important sector, so it is very important to keep the financial system stable. The financial system's stability can measure bank resilience in dealing with the impact of the financial crisis. The phenomenon of the crisis that is being experienced by Indonesia is a crisis due to the pandemic Covid 19 which has an effect on economic health around the world. For this reason, in this study, they want to know the effect of restructuring policies and the level of bank efficiency on the financial stability of Islamic banks. Quantitative research with secondary data from the results of the financial statements of each bank used in this study. PanelData Regression Method Using 6 Islamic Banks used as a research sample with a time period from Q1 in 2019 to Q4 in 2021. The results of the study show that the restructuring policy and company size have a significant positive effect on the financial stability of Islamic banks, while the variables of the level of efficiency projected have no effect on the financial stability of Islamic banks.

Implementation of Minimum Mandatory Giro (Gwm) in Sharia Banking Perspective Analysis of Siyasah Syar'iyyah Maliyyahtitle

This research analyzesthe implementation of Mandatory Reserve Requirement (GWM) in Islamic banking in Indonesia, with a focus on the duplication of money resulting from the implementation of GWM in Islamic banking, the regulation of GWM in Islamic banking in the view of Siyasah Syar'iyyah Maliyyah, and finding a more just system solution for GWM regulation in Islamic banking in Indonesia. In this research, the researcher used a qualitative research method with a library research type and a philosophical approach. The results of this research show that GWM is a monetary instrument applied by the central bank to ensure the liquidity and solvency level of banks in the financial system. The purpose of implementing GWM is to ensure that banks have enough funds to handle their liquidity needs and to ensure the stability of the overall financial system. Then, the perspective of Siyasah Syariyyah Maliyyah shows that the implementation of Islamic economics in Indonesiamust be practiced according to the socio-cultural conditions in Indonesia. Currently, GWM is something that cannot be avoided, and there is still no new system that can replace it for Islamic banks. Therefore, GWM in Islamic banking is one of the monetary instruments that can control inflation. The existence of GWM in Islamic banking in the concept of Maslahah is at the level of tahsiniyat (tertiary). The debate over the existence of GWM in Islamic banking presents several solutions to provide justice for all parties, including changing the fractional reserve banking system to Narrow Banking, which clearly distinguishes between savings and deposits, emphasizes the principle of amanah, and separates profit-making activities in banking through cooperation with separate affiliate organizations from the bank itself. Because the fractional reserve banking system has been challenged in Switzerland, the solution to GWM gharar is the sovereign money system, which is similar to full reserve coverage, but goes further by giving full control over deposits seen by the central bank. So there is no gharar element. In other words, existing savings "create" loans

The Impact of Banking Competition on Bank Financial Stability: Evidence from ASEAN 5 Countries

In the era of the global economy, increasing banking competition will encourage an increase in banking transactions and activities. Banking transactions and activities will affect a country's financial stability. The purpose is to obtain the nonlinear effect of banking competition on financial stability at a specific regime. Previous research assumed that this impact applies to every economic regime. The impact of banking competition on financial stability can change at certain regime levels. Nonlinear impact occurs according to the regime. The method is based on a nonlinear threshold regression model. The researchers obtained the data from five ASEAN countries. The findings of this research are in-depth information about the financial system stability model. Analysis of the effect of variance supports the inconsistency of the effects found by several previous researchers. Practical implications are aimed at policymakers to make different decisions at the GDP level, CAR and Liquidity. The economic regime in each country is different, so this analysis is constructive for policymakers to see the conditions of banking competition and financial system stability at a certain regime level. The originality article systematically offers an analysis that assumes the effect can change at a certain regime level.JEL Classification: E5, G15, G01, G32, C24

Financial inclusion and poverty alleviation: Does it work? (Studies in lower-middle-income countries)

A stable financial system can build a country's economy. Financial inclusion is one of the strategies undertaken to improve the economy and alleviate poverty. Poverty is a troubling problem for every country. Both developing and developed countries face poverty. Therefore, poverty must be eradicated immediately. This study analyzes financial inclusion in poverty alleviation in five lower-middle-income countries (Indonesia, Myanmar, Laos, Pakistan, and Bangladesh). The variables used in this study are the number of credit accounts, the number of savings accounts, the number of debits, the number of bank branch offices, and economic growth. This research uses secondary data or time series from 2010-2020. The method used in this study is the ARDL Panel method. The panel shows that countries with leading indicators for poverty alleviation are Indonesia, Myanmar, and Pakistan. Meanwhile, the leading indicators variables are the number of creditors, the amount of savings, and the number of debits in the five lower-middle-income countries.

Household pandemic Internet search intensity and stock returns: A case of tourism industry resiliency

This paper uses the Google Internet search volume index to capture pandemic attention and examines the effect of COVID-19 on the stock returns of the tourism industry. We find a significant negative effect of pandemic attention sentiment on tourism industry stock returns. The results are robust to the inclusion of alternative pandemic information variables and firm and business cycle controls. Results suggest that large-size firms, firms with better growth opportunities, and value stocks are more resilient to mitigate uncertainty induced by the pandemic. Investors welcome governmental economic policy interventions and thus adjust their return expectations less negatively. Finally, we find that the country's cultural dimension, government efficiency, stable financial system, and health system help to mitigate the downside risk of stock price movements induced by the pandemic.

How Much Financial Development Accentuates Income Inequality in Central and Eastern European Countries?

Financial development is often associated with significant economic growth, but studies have shown that a high level of financial development can be the cause of deepening income inequality in many countries. The main objective of the proposed study is to identify to what extent financial development influences income inequality in Central and Eastern European Countries (CEEC). Thus, for the model specification we used as dependent variable the Gini coefficient and as independent variable the financial development index. The sample period for the analysis was from 2004 to 2019, restricted by the lack of data on the Gini coefficient in CEECs. Data on the financial development index were collected from International Monetary Fund, and data on the Gini coefficient were extracted from the World Bank’s Poverty and Inequality Platform. The study unravels several contributions. First of all, the use of quantile regression allowed for the examination of the effects of financial development across the entire distribution of income inequality. Second of all, the use of a comprehensive financial development index offered a more robust and comprehensive measure of financial development compared to single indicators. Taking into account that the Gini coefficient must be close to zero, this result was a positive one with, in essence, financial development reducing income inequality in CEECs. Thirdly, the specific focus on CEECs fills a gap in the literature. Finally, the findings of this study have important policy implications. The obtained results indicate a negative causal relationship between financial development and income inequality, emphasizing the fact that the relationship between these two components cannot be generalized for all regions. These might include measures to promote financial inclusion, improve financial literacy, and enhance the stability and efficiency of financial systems. Supporting financial development in CEECs and similar transition economies can be an effective strategy for tackling income inequality.

Global Stock Market Volatility and Its Spillover on the Indian Stock Market: A Study Before and During the COVID-19 Period

This study investigates the impact of global stock market volatility on the Indian stock markets before and during the COVID-19 pandemic period. The study focuses on 11 stock markets, including Brazil, Canada, China, France, Hong Kong, India, Japan, Russia, Turkey, the UK, and the US, and applies the threshold generalized autoregressive conditional heteroskedasticity (TGARCH) model to capture the current asymmetry in returns influenced by past negative/positive shocks, and the diagonal Baba Engle Kraft Kroner (BEKK) model to examine the cohesion of the Indian equity market with global markets. The importance of the Indian stock market lies in its ability to provide capital to companies, attract foreign investment, and provide investment opportunities for both domestic and international investors. Data for the study was sourced from https://www.investing.com for the period September 2019 to September 2021 and Stata software was used for data analysis. The study finds that Brazil, Canada, France, Russia, UK, and the USA are the primary sources of financial weight on India’s stock returns. The results suggest that Indian investors can diversify their funds into other asset classes while restricting investments in these markets, particularly during downturns. Investors can make informed decisions to diversify their portfolio and minimize risk. The results can also benefit society by promoting a more stable and resilient financial system. The study can also be expanded to include other financial and economic indicators such as inflation and interest rates to provide a more comprehensive analysis of the impact of global market volatility on Indian equity markets.

Conceptual Approaches to the Formation of a Stable World Monetary and Financial System

The inclusion of the most dynamically developing countries in global value chains marked a gradual shift in the center of economic gravity in the world economy from the West to the East. In an effort to maintain their leading positions in the global monetary and financial system, today Western countries, led by the United States, create artificial barriers for developing countries to access the global financial architecture, which contradicts the logic and laws of the free market and increases geopolitical tensions. The purpose of the paper is to reveal and systematize the main factors contributing to the dysfunctionality of the modern world monetary and financial system and develop conceptual approaches to increasing its stability, taking into account the capabilities and interests of the most dynamically developing countries. The following methods were used to achieve the paper’s goal: scientific abstraction (to generalize the crisis-generating factors of the modern world monetary and financial system); structural and functional analysis (to justify the need to form a “non-dollar” interregional (transcontinental) monetary and financial space and the possibility of the BRICS countries creating their own payment and settlement infrastructure and international liquidity); deduction and comparison (to identify problems that hinder China’s promotion to the role of the leader of the new world economic order and disclosure of contradictions in the monetary and financial regionalization of the single European market). A comprehensive approach has been developed to form and ensure the functionality of the interregional (transcontinental) monetary and financial space of the BRICS countries, including measures aimed at countering the institutional monopolization of the functions of global financial intermediation by defining their own norms, rules and standards for the functioning and regulation of interregional financial markets by the BRICS countries. From a practical point of view, this approach can be used by the government bodies of the Russian Federation and the Bank of Russia to develop a new strategy and tactics for the country’s international monetary and financial cooperation in the face of tougher external sanctions, as well as to develop appropriate measures aimed at ensuring Russia’s financial and economic sovereignty.

CRYPTOCURRENCY AS AN OBJECT OF ACCOUNTING: PROBLEMS OF RECOGNITION

The economic essence of cryptocurrencies and digital technologies were substantiated in the article. Also the article defines their role and significance in global economic processes. It has been established that the reason for the rapid growth in the popularity of cryptocurrencies lies in their advantages over traditional money, in particular, in decentralization, speed and ease of transactions, a high level of security through the use of cryptographic technologies, etc. At the same time, it has been established that the use of cryptocurrencies poses threats associated with the risk of stability of the global financial and economic system, significant volatility in the value of cryptocurrencies, the uncertainty of their legal status, insufficient controllability of transactions, etc. It is substantiated that the widespread use of cryptocurrencies in business processes and their use as an investment object requires proper legal regulation of operations with digital assets. The current state of the regulatory framework for the circulation of cryptocurrency and approaches to its recognition as an object of accounting in accordance with the Generally Accepted Accounting Principles (GAAP) and International Accounting Standards (IAS) are analyzed. It has been established that the enterprises, when recognizing cryptocurrency as an object of accounting, assessing its value and subsequently displaying information in the system of accounting accounts and financial statements, are guided by various accounting standards that are currently available, and therefore there are threats of inconsistencies or distortions of information about the financial condition of the enterprise, its liquidity and solvency, net asset value, etc. To solve this problem, the expediency of developing the special accounting standards by the regulatory authorities that define the generally accepted methodological foundations for displaying information about cryptocurrencies in the accounting system of enterprises is substantiated. Taking into account the specific properties and characteristics of cryptocurrencies, it is recommended to introduce a separate category of assets for cryptocurrencies and disclose information about them in the company’s balance sheet before the item «Cash and its equivalents» in order to maintain the order of liquidity of asset allocation.

Financial stability nexus with oil prices shocks and business cycle uncertainty during COVID-19: empirical trends of ASEAN economies.

This study aims to analyze the correlation between financial stability, oil price shocks, and business cycle uncertainty in the economies of the Association of Southeast Asian Nations (ASEAN) amidst the COVID-19 pandemic. This study examines the interplay and effects of various factors on the economic resilience of the ASEAN region, utilizing data from ten-member countries spanning the years 2002 to 2022. The results underscore the notable impact of oil price shocks on financial systems' stability, suggesting that oil price variations have the potential to disrupt financial markets, particularly in the context of the ongoing pandemic. Moreover, the research illustrates that the presence of business cycle uncertainty amplifies the negative consequences of oil price shocks, thereby heightening their influence on the financial system's stability. The study also uncovers a robust correlation between the COVID-19 pandemic and heightened levels of business cycle uncertainty within the ASEAN economies. The ongoing global pandemic has increased market volatility, a deceleration in economic growth, and disruptions in supply chains, generating a heightened sense of uncertainty within the business landscape. As a result, the heightened level of uncertainty has impeded the efficacy of monetary and fiscal policies in preserving financial stability.

The Coordination Between Macro-Prudential Supervision and Monetary Policy — From the Perspective of Financial Stability

The onset of the 2008 economic crisis forced central banks to acknowledge that the monetary policy and micro prudential policy-based financial regulatory framework is insufficient to avert systemic risks. Compared with the low efficiency of micro prudential supervision in preventing and controlling financial systemic risks and the weakness of a single monetary policy tool in controlling financial systemic risks, the current theorists agree that monetary policy and macro prudential supervision policies are effective in coordinating and resisting financial risks. The link with both macro prudential regulation and monetary policy, as well as how to collaborate and coordinate the two policies, are thus major issues that we must address. Based on this background, this paper systematically combs and analyzes the necessity of coordination between monetary policy and macro prudential policy and the practical experience of relevant research on coordination mode through theoretical research on macro prudential regulation and reference of relevant policies at home and abroad. This paper uses the literature research method and comparative analysis method to analyze the macro prudential policy and monetary policy in depth. The theoretical basis of macro prudential regulation and monetary policy is formed by classifying, summarizing and sorting out the relevant researches on macro prudential regulation and monetary policy made by scholars from various countries. The implementation of macro prudential policies in developed economies like the United States and the United Kingdom, as well as their monetary policy coordination models, are compared and introduced in this dissertation. It also examines the traits and practical application of macro prudential and monetary policy cooperation in various nations. Based on the systematic risk theory, micro prudential supervision, macro prudential supervision theory and monetary policy, combined with the current situation of financial regulatory structures in various countries, using the literature research method and comparative analysis, this paper mainly draws the following conclusions: The financial system can only continue to run smoothly under a combined application of macro and micro prudential regulation; Systemic hazards can be efficiently prevented and mitigated by macro prudential oversight methods; Traditional monetary policy is unable to preserve both financial system stability and monetary stability; According to international experience, the central bank’s coordination of monetary policy and macro prudential policy can better play the complementary effects of the two programs.

The Geo-economics of U.S.-China Financial Relations: Challenges and Opportunities in a Global Context

This comprehensive scholarly article critically analyzes the intricate landscape of U.S.-China financial relations, delving deep into the complex web of challenges, opportunities, and far-reaching implications within a dynamic and interconnected global context. Drawing upon a wide range of empirical studies, extensive research, and rigorous analysis, this study provides a nuanced assessment of the evolution and dynamics of economic ties between the United States and China. The article begins by examining the impact of trade imbalances, tariffs, and currency manipulation on financial flows, employing a sophisticated analytical framework to assess their implications for both countries and the global economy as a whole. Through a meticulous examination of economic data, policy measures, and market trends, the study offers a comprehensive analysis of the complex interplay between these factors and their influence on financial interactions between the two nations. Furthermore, the article delves into the intricate terrain of technology and intellectual property issues, unraveling the multifaceted challenges and opportunities that arise in this domain. By drawing upon empirical research, case studies, and industry reports, the study sheds light on the implications of technological advancements, intellectual property protection, and innovation-driven strategies on economic growth, competitiveness, and sustainable development. The analysis also extends to the realm of financial market competition and regulatory concerns, highlighting the need for effective cooperation, harmonization of regulations, and establishment of robust governance frameworks. Through an examination of regulatory policies, market structures, and international standards, the study provides insights into the implications of financial market dynamics and regulatory environments on the stability, efficiency, and resilience of the global financial system. In light of these analyses, the article presents strategic recommendations for policymakers, businesses, and investors. It emphasizes the importance of fostering an open and constructive dialogue between the United States and China, enhancing risk assessment mechanisms, promoting innovation and technological collaboration, strengthening intellectual property rights protection, facilitating cross-border investments, and promoting sustainable and responsible practices. By synthesizing these recommendations and implementing them in practice, stakeholders can effectively navigate the complexities and capitalize on the opportunities presented by U.S.-China financial relations. This will not only promote economic growth and stability but also contribute to a more balanced, mutually beneficial, and sustainable global financial system.

INTERMEDIATION AND SUSTAINABLE FINANCIAL SYSTEM STABILITY AMIDST THE COVID-19 PANDEMIC

This review aims to analyze the function of internalization and stabilization of the monetary-finance sector for the sustainability of financial system stability during the Covid-19 pandemic in Indonesia. The Covid-19 pandemic caused a deep recession in the national economy and a significant drop in the capital market index. Policy uncertainty over handling the pandemic and the continued emergence of various variants of Covid-19 exacerbated economic conditions. Bank Indonesia (BI) made several monetary policies to complement the policies taken by the government to maintain sustainability during the Covid-19 pandemic. Strengthening financial stability and supporting the intermediation recovery policy strengthens the monetary sector's sustainability and stabilization so that banks do not experience excessive pressure during Covid-19 and remain profitable. These perspectives were tested in the context of the Covid-19 pandemic, and the Indonesian banking and financial stability industry has shown sustainability in the last two years. On the other hand, the competition stability in the Covid-19 pandemic approach assumes that the borrower side of the relationship must be considered. Banks can charge exorbitant interest rates in collusive markets, increasing the cost of borrowing for businesses and triggering the moral hazard problem. Specifically for ASEAN and Indonesia, as a result of the recent global financial crisis in 2020, BI implemented expansionary monetary and fiscal policies in response to the crisis to stabilize its economies.

Does fintech lending expansion disturb financial system stability? Evidence from Indonesia

Literature suggests two contradictory views regarding the impacts of fintech lending on banks. The competition-instability proponents believe that fintech lending expansion erodes bank market and threatens banks as traditional intermediaries, thereby intensifying bank risk-taking and potentially disturbing financial stability. In contrast, the competition-stability proponents believe fintech lending reduces asymmetric information in the credit market, thus reducing bank risk-taking and increasing bank resilience to a systematic shock. This paper aims to examine the impacts of fintech lending expansion on bank-risk taking, i.e., credit channeling activity and bank risk. This study utilizes the OLS, random effects, fixed effects, and two-step GMM regressions to test the conjectures. Consistent with the competition-stability hypothesis, our evidence indicates that shadow banking increases as banks actively seek channels to diversify their risks but are less likely to use fintech lending as a credit channel. This paper also corroborates the notion that fintech lending expansion encourages banks to diversify their risks. Pertaining to the relationship between fintech lending and bank risk, our results suggest that fintech lending expansion encourages banks to work more efficiently to improve their credit quality rather than to intensify bank risk-taking. These findings also indicate that synergy between fintech lending and banks would increase bank credit quality. This paper also examines the reasonable credit limits for fintech lending firms based on MSMEs’ characteristics. Employing the threshold regression, we find that IDR5 billion is the maximum credit provision to induce the profitability of MSMEs whereas IDR6 billion is the maximum credit provision to minimize the default risk of MSMEs.

EFEKTIVITAS PROGRAM BANTUAN LANGSUNG TUNAI DANA DESA PADA MASA PANDEMI COVID 19 DI DESA KRUCIL KABUPATEN PROBOLINGGO

The purpose of this study was to determine the inhibiting and supporting factors for the Village Fund Direct Cash Assistance program for the poor affected by Covid 19 in Krucil Village, Krucil District, Probolinggo Regency. In addition to knowing the effectiveness of the Village Fund Direct Cash Assistance program for the poor affected by Covid 19 in Krucil Village, Krucil District, Probolinggo Regency. The type of research used is a type of qualitative research. The research approach used in this research is descriptive qualitative. The government has designed various new policies in order to suppress the spread and deal with this virus. Among them is Law Number 2 of 2020 concerning the Stipulation of Government Regulations in Lieu of Law Number 1 of 2020 concerning State Financial Policy and Financial System Stability for Handling the Corona Virus Disease (Covid 19) Pandemic. In addition, in order to protect the poor, the government is expanding the Social Safety Net (JPS) including what is stated in the Regulation of the Minister of Village of PDTT Number 6 of 2020 concerning Amendments to the Regulation of the Minister of Village of PDTT Number 11 of 2019 concerning Priority for the Use of Village Funds which among other things relates to the provision of Direct Cash Assistance sourced from the Village Fund (BLT-Village Fund).

ФОРМУВАННЯ ЦІН НА МІЖНАРОДНОМУ РИНКУ ФІНАНСОВИХ ПОСЛУГ

Specific features of international trade in services are considered; the features of the world market of services are defined; pricing methods and pricing strategies used by enterprises providing various services on the international market are characterized. The purpose of the research is aimed at researching the international market of financial services to analyze its main characteristics, impact on the global economy and identify key factors affecting its development and level of financial risk. Research methods: logical and meaningful method, methods of comparison, systematization, induction and deduction, analysis and synthesis, coefficient method. The main hypothesis of the research was the statement that the international market of financial services plays an important role in the global economy and its development depends on such factors as technological innovations, regulatory policy, globalization and the stability of financial systems. Presenting main material. All spheres of international cooperation need developed services, which are a continuation and development of modern production. The main features of the world services market include the following: systematic development, which means that the services market is considered as a complete system with many interconnected components; sensitivity to market changes, which is caused by constant fluctuations in the demand and supply of services on the market; high rate of capital turnover associated with a shorter production cycle in the service sector; constant growth of the range of services. The originality and practical significance of the research are in the understanding of the main characteristics of the international market of financial services, which will help specialists in the financial sector make informed decisions about the development and improvement of their services at the international level; analysis of the impact of the international financial services market on the global economy will enable states and international organizations to determine effective strategies to promote economic growth and stability; determining the key factors affecting the development of the international market of financial services will help to avoid financial risks and ensure the stability of financial systems. The practical significance of the article also lies in the promotion of academic research and expansion of knowledge in the field of finance, economics and international relations. Conclusions and prospects for further research. The results of the study can be useful for government bodies and regulatory institutions in forming an effective policy for regulating the international market of financial services and ensuring its healthy functioning. It was determined that the successful choice of the method of setting prices for international services and the formation of an effective price strategy will allow the enterprise of the service sector to receive high income, increase the volume of service provision, and conquer new market segments.

A Review on the Impact of Shadow Banking on Financial Markets Prudential Regulation

Abstract The evolution of shadow banking sector in terms of structure (concentration of institutions), expanded connections with banks, and in terms of activities there was an increase of the systemic relevance of these entities. The aim of this paper is to review the relevant literature on the topic and the progress that has been made regarding the implementation of macro-prudential policies since the global financial crisis of 2008. As the financial crisis highlighted, shadow banking sector should be considered a source of systemic risk and it is essential to identify its potential effects to the financial sector downturn. We examine the empirical studies that have been carried out in the recent literature on the structure and effects of nonbank financial sector regulation. Based on our findings, the main results pointed out that the academic research conducted in this field focused on the link between shadow banking and systemic risk. The collapse of one financial institution has the potential to have widespread effects and could trigger a series of failures that directly threatens the stability of the whole financial system.