The paper presents selected long-term structural changes of world financial markets: 1. Shifts of location /visible in all segments/; 2. Shifts of on-exchange to OTC relation /different within sub-segments; a general tendency towards OTC/. 3. Shifts of product structure /different: for example, a growing role of futures in FD markets/. 4. growth of internationalization /all segments/. Driving forces:1. technology; 2.´financialization´ of economics; 3.regulation.
Aim/purpose – The purpose of the paper is to identify the main areas of customers’ threats concerning using financial services and the in-depth review of European industry- -specific consumer regulations concerning current accounts and payments. Design/methodology/approach – Desk research including in-depth analysis of industry- specific consumer regulations referring to current accounts and payment services having the character of EU directives and regulations, European Commission reports, and documents. Findings – The paper shows that consumers’ interests are threatened even when they use basic financial services as current account and combined payment instruments. The analysis based on of desk resources has revealed that the regulations give effect to customer protection only if they strictly correspond to defined areas of threats and particular types of risks. Research implications/limitations – The experience of the recent financial crisis proved that the asymmetry of knowledge and information was one of the crucial reasons disrupting customers’ position on financial markets. Research findings will help to identify gaps in regulations and develop the quality of further initiatives aimed on informing customers about the implementation of regulations and improving their financial literacy level. Originality/value/contribution – The payment products are rarely discussed in the literature in the context of consumers’ protection and financial regulations. This paper contributes to the debate by providing an overview of financial consumer protection issues concerning retail payments.
Aim/purpose – The primary aim of the paper is to verify the hypothesis on the normal distributions of 65 stock index returns, while the secondary aims are to examine normal distributions for specific years (for six indexes) and for bull and bear markets (for DJIA), demonstrate that the distribution of rates of return for individual indexes can be normal in short time intervals, and then rank analyzed indexes according to the proximity of the distribution of their rates of return to the normal distribution. Design/methodology/approach – The research sample consists of the value of 65 stock indexes from various time intervals. The sample includes both developed markets and emerging markets. The following rates of return were tested for the normality of the rat e of return distribution: close -close, open -open, open -close and overnight, which were calculated for daily, weekly, monthly, quarterly and yearly data. Statistical tests of di f- ferent properties and forces were used: Jarque – Bera (JB), Lilliefors (L), Crame r von Mises (CVM), Watson (W), Anderson – Darling (AD). In the case of six indexes of d e- veloped markets (DJIA, SP500, DAX, CAC40, FTSE250 and NIKKEI225), normality tests of rates distribution were calculated for individual years 2013 -2016 (daily data). In case of the DJIA index, the normality tests of the distribution of returns for individual bull and bear markets were analyzed (daily data, rates of return close -close). In the last part of the paper the analyzed indexes were ranked due to the convergence of their return to normal distribution with the use of the following tests: Jarque – Bera, Shapiro – Wilk and D’Agostino -Pearson. Findings – The distribution of daily and weekly returns of equity indexes is not a normal distribution for all analyzed rates of ret urn. For quarterly and annual data compression the smallest number when there were no reasons to reject the null hypothesis was o b- served for overnight returns compared to close -close, open -close and open -open returns. For the daily, weekly and monthly over night rates of return, the null hypothesis was rejected for all analyzed indexes. The fo llowing general conclusion can be formulated: the higher the data compression (from dail y to yearly), the fewer rejections of H 0 hy- pothesis. The distribution of daily returns can be normal only in given (rather short) time intervals, e.g., particular years or up or do wn waves (bull and bear markets). The posi- tion of the index in the ranking is not depende nt on the date of its first publication, and hence on the number of rates of return possible to calculate for analyzed index, but only on the distribution of its rates of return. Research implications/limitations – The main limitations of the obtained results are different time horizons of each of the analyzed indexes (from the first date in a data base until 30.06.2017). The major part of the retu rns of the analyzed indexes differs from the normal distribution, which question the possi bility of unreflective implementation in practice of economic such models as CAPM and its derivatives, Black–Scholes options valuation, portfolio theory and efficient market hypothesis, especially in long time horizons. Contribution/value/contribution – The contribution of this paper is verification of the statistical hypothesis regarding normal dist ribution of rates of return: (1) other than close-close, i.e. open-open, open-close and ove rnight with the use of various statistical tests, various data compression (daily, w eekly, monthly, quarterly, yearly) for 65 in- dexes, (2) for six stock exchange indexes in each of the years from the period of 2013- 2016 (daily data) and (3) for individual up and down waves for the DJIA index (daily data). In addition, other papers focused only on one or two statistical tests, while five different tests were implemented in this paper. This paper is the first to create a ranking of stock market indexes due to the normal distribution.
Aim/purpose – The aim of the paper is to compare and create a ranking of alternative trading systems and to investigate if there is a relationship between Gross Domestic Product (GDP) and stock indices of those markets and correlation between GDP and turnover value. Design/methodology/approach – The paper presents a comparative analysis of 13 European trading systems in such categories as: capitalisation, value of share trading, number of listed companies, number of new companies and companies removed from the market between the years 2016 and 2018. In addition, the paper includes a ranking of alternative trading systems in Europe which was created on the basis of the variables mentioned. The paper examines the correlation between GDP and indices of alternative trading systems and also between GDP and turnover value. Pearson’s correlation coefficient was used to examine the correlation. Findings – The ranking shows that the 1st place was taken by the British AIM market, which turned out to be the best in all categories under the comparison, the next two positions were occupied by the markets whose characteristic feature is that they cover several countries of the western Europe; these are the markets of First North and Alternext. The Polish market was at a fairly high 5th position among the 13 compared markets. The Greek and Russian markets came last. The relationship between the impact of GDP and index value as well as GDP and turnover value has also been examined. The research regarding the first aspect of the study confirmed the hypothesis about the correlation of GDP with the index. However, in the second case of the GDP and turnover value there is a very weak correlation. Research implications/limitations – The limitation in the correlation study was the difficulty in obtaining data for all 13 alternative trading systems taken for the study, thus comparing four markets in the GDP correlation and the value of the index and three markets in the relation GDP and turnover value. Originality/value/contribution – The added value of the paper is the ranking of alternative trading systems and study of correlations between Gross Domestic Product and stock indices of Alternative Trading Systems and turnover value of these markets.
The appropriate level of financial knowledge and the degree of financial integration needed in today’s financialized world. This paper studies the level of financial literacy and the degree of financial inclusion among the students who study economic fields. These students are a special target group – very important for future development of financial markets. They are not only the future participants, but also the potential animators and creators of the financial market as well as the future financial advisors. The research sample comes from Visegrad Group countries (4V Countries), as the representatives from Central and Eastern Europe countries, where the level of financial literacy and degree of financial inclusion seems to be lower in comparison to the West European Countries. The research also contributes to knowledge in the area of expanding the methods of assessments of efficiency of financial education. The Authors decided to verify the new assessment of effectiveness of financial education. It will be conducted by a separate and simultaneous assessment of financial literacy and financial inclusion. The main results of research confirm the very low level of financial literacy and financial inclusion of young future economists in 4V Countries in both groups: starting and finishing the professional financial education. In addition, examining the degree of financial inclusion among the students who at the same time are educated at the basic level confirms the much lower level of informed financial inclusion.
There are presented premises inducing to generalize the concept of cash flow equivalence to fuzzy case. As a result of taking these studies was obtained membership function of fuzzy relation of cash flow equivalence. Obtained model was applied for determine the length of accounting period used in conditions of high inflation.
Self-indexing involves the creation by financial institution offering financial instruments based on indices (or by its affiliates) - e.g. exchange-traded funds (ETFs), index funds, structured products - own, proprietary indices. The main advantage of selfindexing is the ability to reduce the costs of managing the investment portfolio as the result of the resignation of the licensing indices from third parties. The disadvantage of this practice can be reducing the transparency and conflicts of interest. Self-indexing is much more popular in the U.S. ETFs market than in European market, because of more liberal legislation in this field (requirements for ETF providers in United States have recently been alleviated by Securities and Exchange Commission (SEC).
Okres, który rozpoczął się od momentu wybuchu kryzysu nazwany został okresem reregulacji, gdyż nastąpił po ponad dwu dekadach deregulacji. Celem artykułu jest opis wprowadzonych zmian oraz ocena wybranych aspektów tych regulacji. Podjęta została próba odpowiedzi na następujące pytania: - Jaki jest punkt widzenia ekonomistów zajmujących się tematyką kryzysu na konieczność reform regulacyjnych oraz pożądane kierunki tych reform? - Jakie działania regulacyjne podjęto na poszczególnych szczeblach? - Czy dokonane zmiany są wystarczającymi, aby zapewnić poprawne funkcjonowanie rynków finansowych w przyszłości? Praca została oparta na literaturze przedmiotu oraz licznych opiniach ekspertów na temat dokonanych reform.(fragment tekstu)
EN
The financial crisis of2007-2008 was the cause of regulatory initiatives undertaken at all levels - from national to the global financial market. Regulations covered many aspects of the functioning of these markets. The article describes new regulatory initiatives. It presents the changes at the global level, in the European Union and the financial market reform in the United States. The main conclusion is that despite the implemented reforms, in the functioning of financial markets are still many areas requiring further regulations.(original abstract)
The aim of this article is the presentation of legal and organizational models of the integrated supervision over the financial market. The integrated supervision is defined by the Author as the legal and institutional mechanism of cooperation and exchange of information between the supervisory institutions over the particular segments of the financial market. The supervision in this sense may take the form of uni- or multi-institutional model of the integrated supervision over the financial market. This division corresponds to the evolutionary concept of the integration of the supervision, both in subjective and objective aspects. In the first case, it means the union of all functioning existing institutions of supervision acting on different segments of the financial market to one institution performing the supervisory functions over the whole financial market (the vertically integrated supervision). In the second case, the integrated model of the supervision is based on several institutions performing the supervisory functions over the financial market ( the horizontally integrated supervision). In this model the supervision over the financial market was integrated via the creation of mutual and provided by law personal connections existing between individual supervisory institutions and via functional connection of them, which are based on the common aim of the supervision performed by these institutions. Mentioned above considerations allowed the Author to the statement that the condition of existence of the integrated supervision, both in the form of uni- or multi-institutional model of the integrated supervision is the guarantee of independence in personal, financial and functional sense from the political power – e.g. from the government, given to the institution exercising the supervisory functions over the financial market. This solution will ensure the realization of the aim of the supervision which is the proper functioning of the financial market, its stability, security and transparency. Basing on the proposed classification of different models of integrated supervision, the Author submits the characteristic of the model of supervision actually adopted in Poland and in France.
Decision-making process made by committees are nowadays the most popular way of interest rate setting. The committee size, length of tenure, and the organization of the interest rate meeting could affect the voting behavior and influences the policy outcome. This paper reviews different views about the role of expectations in monetary policy - how they are set up and how they evolve over time. An important contribution of this paper is to show two different modeling approaches: collective decision-making process based on game theory and classical statistical one. The results are applied to the National Bank of Poland decision making process in 1998-2011.
Wzrost znaczenie sfery finansowej we wszystkich sferach aktywności gospodarczej określany jest mianem finansjalizacji (finansyzacji). Finansjalizacja to proces autonomizacji sfery finansowej w relacji do sfery realnej, a nawet uzyskiwania nadrzędności tej pierwszej w stosunku do drugiej. W wąskim rozumieniu finansjalizacja kojarzona jest z rosnącym znaczeniem działalności finansowej w aktywności ekonomicznej podmiotów niefinansowych. Kluczowym czynnikiem determinującym rozwój tego zjawiska był proces deregulacji i liberalizacji rynków krajów rozwiniętych, rozpoczęty w latach 70. XX w. Pojawiły się nowe, złożone instrumenty finansowe, wzrosła rola finansowych inwestorów instytucjonalnych. Finansjalizacja prowadzi do zasadniczych zmian w sferze zarządzania i własności dużych przedsiębiorstw. Narasta tendencja do skracania horyzontu czasowego podejmowanych decyzji inwestycyjnych, w analizie ekonomiczno-finansowej nadmiernemu wyeksponowaniu ulegają te uwzględniające przede wszystkim krótkookresową zyskowność. Złożoność problematyki finansjalizacji sprawia, iż jest ona identyfikowana i mierzona w sposób fragmentaryczny.
EN
The phenomenon of growing importance of financial sector is called financialization. This term refers to autonomization of financial services industry from the real economy. In the narrow sense it reflects the fact that proceeds from activities in financial markets constitute increasingly higher share of non-financial companies income. The key factor behind financialization is deregulation and liberalization of economies started in the seventies. Financialization leads to short-term goals dominating in the management of companies.
Celem opracowania jest uzasadnienie konieczności wyodrębnienia oraz wskazania istotnych elementów teorii prawa rynku finansowego, pomocnych w analizie i zrozumieniu niełatwej, obszernej i ciągle podlegającej zmianom jego materii. Obowiązujące przepisy z zakresu prawa rynku finansowego UE dają możliwość wyodrębnienia jego części ogólnej, która tworzy podwaliny dla budowy teorii prawa rynku finansowego. Kształtowanie normatywnego, teoretycznego szkieletu po- jęć, instytucji, instrumentów władczego i niewładczego oddziaływania na rynku finansowym w obliczu "nadprodukcji" aktów prawa dotyczących poszczególnych segmentów tego rynku jest szczególnie potrzebne dla szybkiego reagowania na wydarzenia na rynkach finansowych, a budowanie teorii prawa rynku finansowego i wyodrębnianie części ogólnej tego prawa, głównie przy zastosowaniu podejścia nadzorczego, odgrywać może rolę porządkującą i upraszczającą rozumienie przepisów.
EN
The aim of the present paper is to justify the necessity of singling out and identyfing relevant aspects of financial market law theory, which is useful in analyzing and understanding its challenging, extensive and constantly changing substance. This is an important contribution to the discussion about the changes in financial market law, caused in particular by the financial crisis and to underline the development of financial market law, also in its theoretical aspects, which is helpful in understanding modification of the financial market and in future might also help to avoid the inflation of law on the Eu financial market. The questions discussed in this paper help to develop and strengthen the theory of financial market law in its supervisory aspects, especially to distinguish the general part of financial market law reconstructed from ESA regulations and order those provisions that have an adaptational impact on the financial market.
W pracy przedstawiono dwa podejścia, służące do badania dynamicznej zależności pomiędzy finansowymi szeregami czasowymi. W pierwszym podejściu do badania zależności między szeregami czasowymi wykorzystano funkcje kopuli oraz dynamikę sterowaną ukrytym procesem Markowa, natomiast drugie podejście wykorzystuje wielowymiarowe procesy auto-regresyjne. W wyniku zastosowania obu podejść otrzymano dynamiczne korelacje pomiędzy badanymi szeregami czasowymi, które stanowiły podstawę do konstrukcji dynamicznego grupowania rynków finansowych.(abstrakt oryginalny)
W pracy zdefiniowano i zinterpretowano zmiany zachodzące w przestrzeni rynku akcji. Analizie poddano 73 spółki notowane na Giełdzie Papierów Wartościowych w Warszawie w okresie od początku 2006 r. do końca września 2012 r. Jest to okres obejmujący w całości dwie odsłony kryzysu finansowego - od pierwszych objawów kryzysu do momentu, kiedy te badania zostały przeprowadzone. Zbadano dynamikę rynku akcji za pomocą wskaźnika, który mierzy zmiany efektu zniekształcenia kształtu przestrzeni rynku. Indeks ten opiera się na metodach geometrii euklidesowej. Pozwala on na właściwą identyfikację i interpretację najbardziej burzliwych okresów na rynku finansowym.
EN
This paper defines and interprets the changes in the stock market space. There are analyzed 73 companies listed on the Warsaw Stock Exchange in the period from beginning 2006 to the end of September 2012. This is a period, covering entirely the last two financial crises from their first symptoms to the moment when these researches have been carried out. The dynamics of the stock market space was investigated using an index, which measures the evolution of the distortion effect in the shape of the market space. This index is based on geometry technique and it proved to be useful in the Polish capital market. It allows for proper identification and interpretation of the most turbulent periods in financial markets.
The EU integration and the creation of the so-called European single financial market requires creation of institutional solutions corresponding to the integrated structure. At the moment, we are dealing with globalisation of financial markets, and thus with a growth in their integration. However, full integration of the financial system, or the lack thereof, will be only achieved when European states overcome the still lasting financial crisis and its effects in the form of recession in most EU countries. The purpose of this article is to present the situation concerning the integration of financial markets, as illustrated with the example of countries belonging to the EU, with emphasis on the situation on the Polish financial market after the deepest and the most severe financial crisis for the world economies, namely after 2008-2009 as compared with the period preceding the financial crisis. (original abstract)
Microfinance means offering financially excluded people and microentrepreneurs basic financial services like credit, savings and insurance. Microcredit is the most recognized and powerful instrument of microfinance. This is a small loan offered by Microfinance Institutions (MFIs) to people in need. This sources often allows people to invest in small business, make themselves self-employed and break the chain of poverty. Mikrofinanc became known in countries of the poor, however in last years gained recognizing also on the European continent. The goal of the article is to present and analysing the attempts at microfinance issues on the European level, particularly the idea, principles and conditions of the European Progress Microfinance Facility and of its innovative approach up to microfunds. The article shows the initiatives and their evolution. It is also paying attention to problems of microfinances associated with propagating, coordination and supervising them.
Along training courses and scientific research in boundaries of personal finances, many different and innovative solutions are created on financial market, such as ING's "Finansometr" or Google Wallet. Changes in financial awareness of people create demand for products and services associated with personal finance, which thereafter leads to creation of multitude of financial innovations. The aim of following paper is to portray chosen examples of financial innovations in a field of personal finance. First part of it is dedicated towards explanation of theoretical terms associated with financial innovations and their meaning in development of personal finance. In next parts examples of personal finance innovations implemented by mBank, ING Bank and Google are shown.
The paper raises important and timely issue of financial instability and its sources in the modern world. The paper presents definitions of financial instability operating in literature, characterizes chosen theoretical concepts of financial instability and tries to identify the endogenous and exogenous sources of financial instability. Many of the problems presented in the paper are debatable, difficult to define, many important topics are only signaled and they are a starting point for the future research
The paper raises important and timely issue of financial instability and its sources in the modern world. The paper presents definitions of financial instability operating in literature, characterizes chosen theoretical concepts of financial instability and tries to identify the endogenous and exogenous sources of financial instability. Many of the problems presented in the paper are debatable, difficult to define, many important topics are only signaled and they are a starting point for the future research
The new approach to risk modelling in IT services has been introduced in the paper. The primary idea was to use financial and insurance risk measures and apply them to IT services portfolio contracts. This conception has led to formulate new definition of risk in IT services which has been proposed in the second part of the paper. The last section presents a stochastic IT services risk model which is built as an optimization, decision problem.
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