scholarly journals CREDIT INDEBTEDNESS AS CONVERGENCE CATALYST OF ECONOMIC REGENERATION IN THE VISEGRAD GROUP OF COUNTRIES

2016 ◽  
Vol 4 ◽  
pp. 172-178
Author(s):  
Martin Hudec

Financial institutions perform an important role as financial intermediaries in the financial market of the Visegrad group of four countries. These institutions ensure the smooth transfer and redistribution of funds from the various economic players with surplus savings to those who need freely obtainable funds through loans. This transfer and redistribution essentially accelerates the convergence of the four countries economics, through creating consumer debt closer to that of the developed and competitive western economies. The purpose of this paper is to research available statistics to evaluate and compare different aspects, conditions, and development of consumer credits in these four countries in terms of their progress with economic recovery, as a part of convergence after the crisis period, in Central Europe.

2018 ◽  
Vol 4 (4) ◽  
pp. 106-115
Author(s):  
Nataliia Zachosova ◽  
Nataliia Babina

In the conditions of the financial system destabilization in Ukraine, caused by such negative phenomenaas military actions in the East, the economic downturn, political and financial crises, population disappointment inthe institution of power and loss of the people’s confidence in power structures and so on, market mechanisms arenot able to ensure the restoration of the national financial market and to encourage its professional participantsto use mechanisms of protection their own assets and the assets of their clients from external and internal threatsactively. State interference in the functioning of financial institutions is necessary, especially for those of their types,whose bankruptcy may have fatal consequences for the welfare of the population and cause the liquidation ofeconomic entities of the domestic economy. Among them are: banks, insurance companies, credit unions, andother institutions of credit co-operation, investment companies, in particular, joint investment institutions (unit andcorporate investment funds), non-state pension funds, leasing, factoring, and other financial companies, pawns,etc. Therefore, it is expedient to consider the possibility of the influence of state regulators in financial servicesmarkets on the state of their participants’ economic security. However, the study of the realities of the financialmarket of Ukraine development has made it possible to assert that for a number of financial institutions, the conceptof economic security is something abstract, and the understanding by their top management the importanceof economic security management, taking into account the negative market trends, is completely absent.So, the purpose of this study is to diagnose the level of financial institutions preparedness for the implementationof economic security management into their common system of management. The high level of financial marketparticipants’ readiness for safe-oriented management will allow regulators to rapidly implement in their practicea list of recommendations that will minimize the threat of bankruptcy and liquidation of domestic financialinstitutions. Methodology. In the process of preparing a scientific article, a great number of literary sources wasconsidered. Some of them were developed using the method of theoretical generalization and the monographicmethod. The theoretical results presented in the research materials were obtained on the basis of the study ofworks of such scientists as Amadae S. M., Baily M. N., Elliott D. J., Ismail Z., Johnson K. N., Mirtchev A., Nelson J. A.,Raczkowski K., Schneider F., Sidek Z. M., Ula M., Whalen C. J., Wierzbicka E., Yong J. To confirm the reliability of thescientific results presented in the article, the authors used the Delphi method and expert evaluation. The list ofindicators for assessing the level of financial institutions readiness for the implementation of a mechanism formanaging economic security in the following five areas is formed. These areas are: the availability and conditionof the economic security system, the state of information and analytical support for the adoption of managementdecisions in the field of economic security, the state of intellectual and personnel management provision ofeconomic security, reserves of financial support of economic security, the level of external influence on the stateof economic security (state regulation and supervision). In May 2018, representatives of the top management ofvarious types of financial institutions, scientists, researchers, and analysts who were interested in the issues ofeconomic security management of the financial sector were interviewed. Their answers were analysed and the levelof readiness for managing the economic security of the most common types of financial institutions in the financialmarket of Ukraine was determined. Using the graphical method, the obtained scientific results are presented ina convenient and understandable form for the perception of all interested persons. Results of the survey. The necessityof carrying out diagnostics of the readiness to manage economic security at the level of state regulatory bodies andat the level of top management of financial institutions in the near future is substantiated. A large-scale analytical work was carried out on determining the parameters of financial institutions readiness for the continuous and professional economic security management, which should be carried out with the use of a systematic approach. Based on expert opinions, a preliminary assessment of the various types of financial intermediaries’ readiness to integrate security-oriented management into the financial institutions’ common management system was made. Practical implications. The proposed methodological approach for assessing the level of financial institutions readiness to manage their own economic security should be used by the state regulators of the financial market, in particular, by the National Bank of Ukraine and the National Commission, which performs state regulation in the field of financial services markets, to monitor the activities of professional financial market participants in order to conduct advisory and consultative work with their owners and managers, as well as for the development of strategic guidelines for the provision of the state financial security. It is desirable to implement into the practical activities of financial intermediaries our proposals for increasing the readiness for implementation of the economic security management mechanism in the existing systems of management. Value/originality. For the first time, a scoring methodology was prepared for assessing the level of financial institutions readiness for the implementation of economic security management as an independent direction of management, and not as one of the tasks of other types of their management activity. At the theoretical level, the substantive interpretation of the notion of the readiness of financial institutions to manage their own economic security is proposed. The reasons for the impossibility of the modern financial institutions to manage their own economic security effectively are identified, and a few suggestions to minimize their number in the near future were made.


2018 ◽  
Vol 13 (4) ◽  
pp. 119-130
Author(s):  
Nataliia Zachosova ◽  
Nataliia Babina ◽  
Volodymyr Zanora

The effective management of economic security of financial and banking institutions at the application level is not possible without formulating the conceptual foundations of this process in the research and methodological plane. With that, the management system should take into account the specifics of financial intermediaries, which requires the development of specific research and methodological approaches. The purpose of the study is to generalize the conceptual framework for economic security management of banking and parabanking financial institutions as an integral part of ensuring the economic security of the financial market and financial security of the state. The authors propose an algorithm for managing the system of economic security of banks and other financial institutions, and identify the features, advantages and disadvantages of models for providing economic security. It is proved that managing the economic security system should consider the type of an institution, its size, the adequate personnel availability, and financial, information and material support. Consequently, effective economic security management should ensure its high level, and, therefore, partially solve the problem of regulating banking security, the financial market security, and, as a consequence, the financial security of the country.


Author(s):  
I. Blahun

The article presents a modern view of understanding of "financial market" concept, as the development of financial technologies gradually influences the change of paradigm of its functioning, new financial institutions, institutions of market infrastructure, financial instruments are emerging, as well as the development of forms of alternative financing. On the base of the systematization, it is determined that the term "financial market" in the current scientific literature is considered from three positions, first as a mechanism of distribution of financial resources, secondly, as a system of economic relations, and thirdly as a set of markets and institutions. As a result of the research on the contrary to the popular opinion that the financial services market and the financial market are two separate markets, it has been substantiated that the financial services market is a part of the financial market, because financial instruments are formed through the provision of financial services. The financial market and the market of financial services have common subjects - financial intermediaries (banks, insurance companies, non-government pension funds, investment funds, etc.), but at the same time the objects of these two markets are different. Financial instruments are objects for financial markets, and services – for the market of financial services. Through the process of financial services providing, financial intermediaries ensure the fulfilment of the basic function of the financial market, which is the redistribution of financial resources in the economy, thereby creating financial assets, liabilities, etc., which is the basis for the formation of financial instruments. Taking into account of the impact of fintech on the development of the financial market, author's definition was presented in this work as a system of financial institutions (market subjects), which create the conditions for transactions with financial instruments of economic agents (market objects) using appropriate infrastructure and financial technologies. Transfer of flows of financial resources in the economy at national, subnational and global levels, adequate assess of financial risks and ability to absorb exogenous and endogenous shocks were determined as a purpose of the functioning of the financial market. Keywords: fintech, financial instruments, financial institutions, financial services market, financial system, financial services..


Author(s):  
Iryna PRIKHNO ◽  
Igor CHASTOKOLENKO ◽  
Artem MARCHENKO

In today's global economy, financial intermediation is an extremely powerful source of financial resources that can be used for investment purposes, since financial intermediaries can combine temporarily free (unused in the economy) financial resources of different business entities and direct them to those sectors of the economy that need investment. At the same time, financial intermediaries simultaneously provide the movement of financial assets and contribute to the development of the economy. It is proved that the objective need for a study of financial intermediation in Ukraine is to establish such a mechanism for the redistribution of financial resources in the country in order to achieve the maximum level of development of the economy both at the micro level and at the macro level. In Ukraine, the process of reforming the economy continues, including the financial market. The main participants in the financial market are financial intermediaries, which bring together buyers and sellers of financial assets. Activities of financial intermediaries in the financial market can be characterized by the fulfillment of the following main functions: accumulation of savings of economic entities; placing of attracted financial resources in the branches of economy; obtaining profit (own, as well as other economic entities); ensuring economic development. We believe that the main purpose of financial intermediaries is to create a balance in the financial market by matching interests and needs of all participants in the financial market and balancing demand and supply on financial resources. The most common is the division of financial intermediaries into banking institutions (banking sector) and non-bank financial institutions (non-banking financial sector). Currently, in Ukraine, banking institutions are represented by universal and specialized commercial banks of Ukraine, and non-bank financial institutions are represented by insurance and financial companies, credit unions and pawnshops, non-state pension funds and trust companies. According to statistics, the banking sector is larger in terms of assets, while the number of financial market participants is dominated by the non-banking financial sector. The analysis carried out shows an increase in the role of non-bank financial institutions in the financial market. Non-financial sector entities are dominated by financial companies. The article outlines the following main problems of the development of financial intermediation entities in Ukraine: the inconsistency of the financial system of Ukraine with the real sector of the economy, as a result of which the non-banking sector of the economy is not able to fully perform its main functions; the presence in the financial market of institutions that practically do not perform the functions assigned to them, thus creating significant risks for the normal functioning of the market; Ineffective legislation and an ineffective system for overseeing the activities of financial intermediaries, which gives rise to distrust of financial institutions; low level of financial literacy of the population. In order to overcome the problems identified and to provide an effective mechanism for the functioning of financial intermediary institutions in Ukraine, it is proposed to: introduce common rules of conduct in the financial market for banks and non-bank financial institutions, but taking into account the specifics of each type of financial intermediary; to intensify activity in the financial market of investment funds, insurance companies and non-state pension funds; Maximize the attraction of the non-banking financial sector to the development of the real sector of the economy; introduce a reliable mechanism for protecting the funds of the population and business entities; to create a service consulting center for the provision of services by non-bank financial institutions. We believe that the outlined directions for solving the problems of the development of financial intermediation create the basis for its further improvement and promote the activation of their effective activity.


Author(s):  
N.I. Chovgan ◽  
◽  
O.S. Akupiyan ◽  

The development of the modern capital market and innovative technologies, including in the financial sector, creates the need to expand the research areas of the reproduction process and individual mechanisms that support it. Financial institutions are constantly required participants in responsible financing. Investors’ expectations regarding investments in environmental production and technologies reorient capital flows to these areas, and schemes for attracting financial resources and distributing risks in the process of implementing the principles of sustainable development are considered as unified. The article analyzes transformations and reviews the existing experience of forming appropriate mechanisms, justifies the functioning of the most effective ones. Among the investment and financial mechanisms of the “green” economy, the most important are budget investment mechanisms and financial market mechanisms. The mechanisms of the stock, credit and insurance markets are identified as components of the financial market mechanisms.


Author(s):  
Jacek Wieclawski

This article discusses the problems of the sub-regional cooperation in East-Central Europe. It formulates the general conclusions and examines the specific case of the Visegrad Group as the most advanced example of this cooperation. The article identifies the integrating and disintegrating tendencies that have so far accompanied the sub-regional dialogue in East-Central Europe. Yet it claims that the disintegrating impulses prevail over the integrating impulses. EastCentral Europe remains diversified and it has not developed a single platform of the sub-regional dialogue. The common experience of the communist period gives way to the growing difference of the sub-regional interests and the ability of the East-Central European members to coordinate their positions in the European Union is limited. The Visegrad Group is no exception in this regard despite its rich agenda of social and cultural contacts. The Russian-Ukrainian conflict confirms a deep divergence of interests among the Visegrad states that seems more important for the future of the Visegrad cooperation than the recent attempts to mark the Visegrad unity in the European refugee crisis. Finally, the Ukrainian crisis and the strengthening of the NATO’s “Eastern flank” may contribute to some new ideas of the sub-regional cooperation in East-Central Europe, to include the Polish-Baltic rapprochement or the closer dialogue between Poland and Romania. Full text available at: https://doi.org/10.22215/rera.v10i1.251  


2014 ◽  
Vol 15 (2) ◽  
pp. 119-129
Author(s):  
Paweł Trippner

Abstract Collective investors play an extremely important role in the financial system of the state and in the economy. They operate in the financial market as institutions that enable households and businesses to convert savings into investments. Investment funds are the most conventional institutions which are dealing with financial intermediation. The main purpose of the submitted paper is to characterise the essence of investment funds operation in the role as financial intermediaries, to present the investment strategies and to characterise the methodology for measuring the effectiveness of capital management entrusted by the clients. The author has formulated a research hypothesis, according to which, the strategies of capital location policy used by the investment funds have an impact on the level of their performance, while funds holding higher risk portfolios perform better compared to the funds using passive investment strategies


Istoriya ◽  
2021 ◽  
Vol 12 (6 (104)) ◽  
pp. 0
Author(s):  
Valery Yungblyud

The article is devoted to the study of various aspects of daily life of the US Embassy in Czechoslovakia in 1945—1948. The author considers the main areas of its work, major problems and difficulties that American diplomats had to overcome being in difficult conditions of the post-war economic recovery and international tension growth. Special attention is paid to the role of Ambassador L. A. Steinhardt, his methods of leadership, interactions with subordinates, with the Czechoslovak authorities and the State Department. This allows to reveal some new aspects of American diplomacy functioning, as well as to identify poorly explored factors that influenced American politics in Central Europe during the years when the Cold War was brewing and tensions between Moscow and Washington were rising. The article is based on unpublished primary sources from the American archives.


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