The globalization processes being at present an object of broad scientific research date from a dozen or so years. The beginning of the 1990s was the period during which the capital flows were beginning to trespass the state frontiers to a larger and larger degree. Like in the majority of economic processes, two purely financial problems have been connected with this phenomenon: the profit and the risk. The profit is linked to the capital owners' search after interest rates higher than those offered by their domestic financial market. Whereas the second problem, unseparable from the former, concerns the diversification of the assets portfolio in possession at the given moment. The phenomenon of the transfrontier capital flows is particularly noticeable because of its strong impact on local financial markets in the economies of countries of emerging markets. This impact has a two-way character: a) favourable - by strongly promoting the development based on the inflow of large quantities of lacking capital; b) negative - by increasing the dependence of the economic development on the foreign capital and, consequently, making this development dependent on the attained macroeconomic indices or, more exactly, on the assessment of such indices arbitrarily made by international financial markets. Such assessments are being compared with the expected ones, e.g. to the expected exchange rate level. Then, there is always risk that non-fulfilled expectations will lead to oscillations as a result of which the monetary authorities will not keep to the earlier planned exchange rate levels (Obstfeld, 1994). The paper deals with negative consequences that accompany the international capital flows or, more exactly, the exchange crises of 1994-1998 related to the globalization process (see section 1). In section 2, the Mexican exchange crisis of 1994 is discussed and its sources are presented, as well as the political and economic situation. In section 3, the scale of the economy breakdown, the situation of the banking sector and the remedial measures undertaken are discussed. The remaining part of the paper is organized as follows: in section 4, an answer is presented to the question: is it possible do foresee a crisis? The section is divided into a practical and a theoretical concept. Finally, in section 5 conclusions of general character are presented.
n the article the concept of social lending was presented. The author focused on legal and tax aspects of this product in Poland. Moreover the comparative analysis of Polish social lending services were shown.
The authors of the article are analyzing the structure and some of the figures of the financial market in Russia. The choice is dictated by the proximity of Russia, and relatively little knowledge of the financial market of this country, as well as by great potential which lies dormant in this sphere of Russian Federation economic life. The study attempts to characterize this market and to define its segmentation. The paper also describes the genesis of this market and the main stages of its development. At the end some figures, which characterize this market, were presented. The authors relied on the two segments: capital market and foreign exchange. These figures, beyond the role of information, allow comparison of trends in the Russian market with those that accompany market in Poland.
In the article the author presents the importance of unlisted derivates in the financial market. The increasing volatility of basic prices of financial instruments (foreign exchange rates, interest rates and stock exchange indexes) is a major factor in the increase in sales of the derivates and makes business entities protect themselves against a financial risk. Simultaneously, it motivates business entities to take speculative action in order to make a profit. These are two factors in the derivates creation and development. The main reason why the interest in derivates has been growing is that the unlisted market was faced with obstacles related to the prediction of future changes of interest rate and foreign exchange rate. Financial activity was riskier and riskier. Moreover, mainly speculative dealings of national banks with foreign banks are carried out in the unlisted derivates market. Thus, banks provide financial markets liquidity.
The next (24) part of Cooperative Thought Library reminds personage and opinions of Witold Lewicki (1859-1931), Galician lawyer, journalist and politician. His views concern the direction of development of Polish credit institutions and economic program, which should be based on values such as solidarity and cooperation. We publish excerpts from the Lewicki's book entitled Zagadnienie gospodarcze Galicyi, Lwow, 1914.
In this research we economically explain the observed shape of financial market distributions as this question has still not been fully answered. We suggest the explanation using market price directional dependence which can be also used as an additional one to the nowadays popular volatility dependence solutions. Volatility dependence is based on volatility clustering and does not cover observations of the departures without volatility clusters behind but in this research we also do explain such cases. The whole methodology is based on the financial system internal description therefore we eliminate the internal structure uncertainty which results from just the output/input system description. We try to identify the processes containing the direction dependence within universal model, discuss their contribution to the measured shape of the distributions, make their complex simulation based on the theory of dynamical systems, try to measure them empirically and outline appropriate mathematical description based on Markov chains.
The article presents issues related to the investment alternatives for the households and the opportunities offers especially to Albanian families by the financial market. The main part of this study consists in developing empirical models, which can explain the behavior of Albanian individuals to invest in a particular portfolio. A survey was conducted consisting in 300 questionnaires. The research covered different cities in Albania, selected basically on their size and geographical location. The models are developed the Binar Models (models with discrete values), where the dependable variables are binary. Undependable variables are category. In the developed equations are reflected the main factors influencing the probability of undertaking by individuals investments with no risk or with risk.
Studies on financial behaviour of Ukrainian population have been just started. None of its attributes has been investigated yet. The authoress stresses the necessity of massive empirical researches and sociological analyses on financial market and financial strategies of various social groups.
This paper discusses the role that financial innovations play in the modern financial system, aiming at identifying and systematizing the core problems and definitions related to this issue. The paper first describes the importance of the financial system and financial markets in the economy, explaining their functions and presenting their particular characteristics, focusing on their innovativeness. Then, based on the theoretical studies, the broad definition of the financial innovations is developed, stating that any new developments in any elements of the financial system, including: markets, institutions, instruments and regulations, can be regarded as financial innovations if they are perceived as new by the end-user of innovation. Next, the systematization of the most important types of financial innovations is presented regarding different classification criteria, such as: sources of innovations, motives for innovations, their effects or functions. As financial innovations are not a homogenous group of financial developments, their implications for the financial system can be ambiguous, thus the final assessment of their role can not be generalized and should be made on a case-by-case basis. The information presented in this paper can be regarded as an introduction, encouraging to do further research, as the complexity of the financial innovations makes them an interesting and important subject for this.
The article recreates and verifies the basic theses of the centre-periphery theory. 1. The profitability of the leading products decreases over time and their production is transferred to the peripheries - confirmed thesis. 2. This brings profits not only to investors but also to the societies of the central states; it counteracts the fall of the standard of living of groups affected by unemployment or reduction of real wages and is indirectly conducive to political stabilization of the centre states - confirmed thesis. 3. Capitalism in the centre is of a financial nature - based on speculation - confirmed thesis. 4. Financial capitalism does not finance the real sphere and contributes to economic stagnation of the centre - unconfirmed thesis. 5. The world financial market serves the exploitation of the periphery - unconfirmed thesis. 6. Financial speculations in the centre contribute to the political destabilization of the periphery - confirmed thesis. 7. The higher the levels of participation of a peripheral state in the international economic system, the greater the losses of the state - unconfirmed thesis. 8. The greater the profits of the central state - unconfirmed thesis. 9. The superior productivity of the hitherto economic hegemonist of the centre - the USA - diminishes successively to the advantage of Western Europe and Japan - unconfirmed thesis.
The purpose of the submitted article is to underline the necessity of introducing national insurance system reform in Poland. As a result of the reform, there are financial institutions which participate in the so called 2nd and 3rd insurance pillars. The reform imposes some tasks concerning investment policy. There is an analysis of the influence of the reform on the development of financial investors in Poland, with special attention paid to investment funds and open pension funds. ·
The mechanism of state regulation and functioning of the financial market, their basic elements and directions of influence on development of the financially-credit mechanism of joint-stock companies in Ukraine is investigated.
Main macroeconomic trends in the global economy post-recession period are analyzed. The key economic trends and the possible configuration of the global world economic system in terms of resource constraints and opportunities of the world's economies are identified.
This article deals with present financial crisis as a result of credit expansion. Debt problem was mask with financial instrument innovations, namely structured bonds in securing form. By the help of this, instruments were walked around state of the regulatory body and postpone assignment of disequilibrium. A part of rating agency in this process is described. Special attention is paid to impact of financial crisis on financial market, especially on insurance business. The article calls attention on asymmetry information problem and possible influence and adequacy of regulatory attitudes on return to equilibrium level particularly in EU.
Bank-receivership represents a strict limitation for shareholders rights and competencies of all bodies of the related bank. It is a reorganisation and restructuring measure which may also impact upon the existing rights of the third persons, including the possibility of suspension of disposal by depositors of their deposits and the suspension of payments and clearing in a bank subject to forced administration. Upon introduction of forced administration, the execution of functions shall be suspended for all bodies of the bank and officers of the bank and the duties of the board of directors and the supervisory board are transferred to the forced administrator of a bank. At the same time, the rights of shareholders are suspended to the specified extent, except for the right to participate and vote at a general meeting convened by the forced administrator of a bank. During this time, the term of office of members of the statutory body and the supervisory board does not elapse. The author deals with the several significant application problems arising specially in the legal regulation of bank-receivership performance, also known as forced administration over a bank, according to Slovak Act on Banks. At first, he provides short introduction into legal regulation of forced administration and in accordance with its purposes and intentions gives proposals for appropriate amendments in systematic order of Slovak Act on Banks. Consequently deals with partial application problems as following: introducing forced administration over a branch office of a foreign bank from non EEAState, the Fit and Proper assessment of forced administrator of a bank, deputy administrator of a bank and their hired professional advisor for receivership purposes, professional competence and integrity of persons appointed as forced administrator and deputy administrator of a bank by the National Bank of Slovakia (NBS) as the financial market supervisory authority, conducting of rights and duties of forced administrator of a bank pursuant to provisions of Act on Banks, etc.
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