На английском языке. New Regulation of financial Markets -Useful

На английском языке.
New Regulation of financial Markets -Useful

If the segment of bank crediting of not financial sector was dynamically developed, since 2009 volumes of bank crediting as well as the market of debt securities were sharply reduced. Fall in the second half of 2008 of availability of financing from out of at softening of credit possibilities of bank system of Russia made an active considerable growth of rates of crediting, and an impracticability of escalating of debt financing lead to a number of technical defaults of the companies with a high share of credit sources of financing development.
The Bank of Russia very actively applied existing possibilities of financial system support, first of all - refinancing. Specifications of obligatory reservation went down, to increase of availability of refinancing of REPO operation have increasedin 2,8 times, volumes intraday have increased on 28 %, pawn credits have increased in 9 times, etc., the crediting possibility on security by not market actives (bills, receivables on credit facility agreements) was given. Such actions have allowed to support liquidity of bank system during the crisis moment and to reduce to a minimum risks of loss of solvency.
Along with assistance to the bank sector the help to both stock market and also economy as a whole was carried out. The stock market is a key element of the economy created in middle class of workers — proprietors.
The creation of the international financial center assumes forming of system of interaction of the organizations involving the capital and investors from the various countries aspiring to placing their capital. The purpose of the given action consists in constructing an effective and competitive financial system at the world level, capable to provide high level of investment activity in economy, financial support of innovative activity. Besides, construction of the financial center is complicated by absence in economy of long-term financial resources and their high cost. The big inflation leads to that real rates on deposits are shown negative. Besides, all deposits are revocable, i.e. the bank should give to the investor the money from the account at any moment. Irrevocable deposits will promote formation of long-term resources only in the conditions of stable economy. If macroeconomic conditions are unstable, new kinds of deposits not only won't raise trust to bank system, but also will lead to raking out the capital from banks. Thereupon it is necessary to promote actively to development of non-state pension system, life insurance system, etc. similar institutes possess “long-term money” and possibility to direct them in such projects, as building of an infrastructure on the basis of state-private partnership with long times of recovery of outlay. The caused expectations at attraction of long-term investments are charged on infrastructural bonds which urged to involve mechanisms of state-private partnership (SPP) on development of transport, energy and municipal infrastructures. It is necessary to notice that such SPP mechanisms as concession, special economic zones, do not work so much in the absence of infrastructural bonds, financing or imperfection of legislation, how many because of internal corruption of Russian economy. Realization of joint projects within the limits of SPP is accessible to the elite, in advance certain companies. Any other company will face administrative barriers, to overcome which it is required considerable time and efforts. The competition, both political and economic, is necessary for society and economy development.
Along with support of banks it is important to pay attention to the development of other institutes of financial system.
Anti-crisis regulation of financial market in Russia and abroad considerably differs. In our country the accent makes on increase of liquidity of the market, first of all bank sector and massive state support. The same approach is applied and in the US. In European countries the priorities are displaced towards perfection of institutes. The main attention there is given to objective assignment of ratings to the companies, independence, a transparency of work of rating agencies, representation of trustworthy information by emitters, investment advisers, auditors and the legal companies. Unfortunately, in our country to these questions the insufficient attention is paid. The infrastructure of the financial market is opaque, such traditional tool as credit stories, it is used unproductively differs an inefficiency, and.
Doesn't cause doubts that the developed financial market is capable to provide the offer of various financial tools, to stimulate demand for financial tools that finally will create competitive pricing in the financial market. Thus the stock price is formed under the influence of supply and demand in the market. The prices of stocks during the concrete moment of time reflect not only fundamental indicators (cost of tangible assets of the company, fictitious assets (brands, trade marks, a know-how, etc.) and management efficiency (quality of management, profit, performance of strategic problems of development), but also psychology of investors. However the model of capitalist economy based in stock market which is accepted in the US and the European countries, isn't unique. Alternative models based on powerful long-term bank crediting are realized in Japan, Korea, partly in Germany.
The confusion between investors can make active repeated falling of capitalization of the company in stock market which it is impossible to explain by objective factors. From the point of view of the economic theory, action of investors are rational and caused by the new information - for example, inventions of competitors, deterioration of a business climate, state regulation toughening. However investors are inclined to overestimate risks therefore the negative information can provoke serious falling in stock market. Simultaneously the positive information quite often also is overestimated that leads to the overestimated cost of actives, creation of “soap bubbles”.
The reasons of subjective behavior can be not always explained by rational factors and are frequently connected exclusively with internal psychological installations of investors. And for portfolio investors, unlike strategic, is absolutely not very important what price will reach tasks in view and what finally will become the object of investment, because the profit is the most important thing. The similar behavior is characteristic for some strategic investors, they are interested in growth of capitalization of business that allows to sell it with high profitableness.
Though the world financial crisis of 2008 in many respects could be explained with objective reasons, most likely psychological factors promoted so deep falling of stock market because of a panic outflow of foreign investors of capital from emerging markets, including from the domestic.
Maintenance of stability of financial system in uneasy conditions of world financial crisis was reached by enough high price — gold and exchange currency reserves have decreased on 45,3 billion dollars. The alternative approach consisted in toughening of currency regulation and artificial restraint of transfer of savings in currency, strengthening of differentiation of reserving norms on deposits in roubles and foreign currency, introduction of taxation of incomes received owing to an exchange rate difference on deposits in foreign currency. However such approach finally also can appear inefficient if converting gets shadow character, and the currency bought by the population remains “under a pillow” and won't work in economy.
In Strategy as one of risks named the expansion of the world financial centers to the countries with developing economy, but this risk shouldn't be overestimated. National regulation of the financial markets can quite level negative consequences of merge at the expense of an establishment of own standards and requirements to emitters and the reference of securities. The development of stock markets of the West in last years is explained by dynamical growth of derivative financial tools. Finance papers which is not right requirements of tangible and fictitious assets, but pools of every possible obligations of different borrowers, first of all mortgage, it is difficult to consider as the reliable financial tool. These derivative securities are poorly connected with real sector of manufacture. They serve as the mechanism of escalating of speculative investments. In our country similar tools are applied minimum that at an initial stage has served as a barrier to distribution of an economic crisis in Russia. Whether it is necessary to accent further efforts to development of derivative security — it is ambiguous question.
Nowadays it is important to develop infrastructure of financial market, formation of independent authoritative rating agencies in our country, etc. Now the increasing role is represented to more correct start to play the self-regulatory organizations. They formed in the sphere of financial intermediary, and recently this institute began to be applied in construction sector. It is difficult to say, whether self-regulation will be able to replace completely licensing and the state control, but in the developed democratic society with competitive economy self-regulation basically is effective enough.
It is necessary to toughen control over a manipulation of the prices for securities and behind transactions on the basis of the insider information. And this control should mention all persons, irrespective of their status and powers.
Undoubtedly, the presence of the independent financial center reproduces the country status in world economy. But creation of such center in Russia at the present stage shouldn't be the goal of financial policy. The balanced approach when problems of increase of the status of a national financial system (creation of the independent financial center in Russia) and its integration into a world financial system (absorption of national stock exchanges by the largest stock markets) are combined is more reasonable. The organization of own financial center — a challenge which demands the highest expenses at an initial stage, trust creations to national currency and a financial system. Subsequently it will provide high positions in world economy and policy. World financial crisis has shown that Russian financial system is insufficiently steady also instability on share platforms of the developed countries can lead to its disbalance.
Therefore before to put considerable capital in formation of the new financial center, it is necessary to estimate objectively possibilities of our country in maintenance of stability of rouble and steady inflow of foreign investments, as well as possibilities of growth of economy at equation of the state budget in intermediate term prospect. Formation of the financial center in Russia will be possible when the Russian economy starts to play more significant role in the world economy, and level of gross national product of Russia will exceed 7-10 % of world gross national product. Artificial formation of the world financial center and giving to rouble the status of reserve currency will demand such efforts and investments which hardly can justify itself even in intermediate term prospect.
The world financial market became generated and large-scale in a consequence of long-term evolution. Russia is forced to study its laws quickly. Now the market of the state bonds is the only developed segment of the financial market. It is a normal economic stage. For modern Russia fast development of the financial markets, especially securities markets is characteristic. Unlike many countries of Eastern Europe in Russia they are formed not only in capital and large industrial centers. Practically each subject of Federation has them. In the majority of industrial cities there is at least one share or commodity and stock exchange. All countries which go by the way of direct loans of foreign currency, lose the internal financial market. Even in such countries as Sweden and Finland, at the ideal mechanism of construction the financial markets are far from perfect from the point of view of volumes and proportions. If the country wants to keep financial independence, it should balance between internal and external loans. Russia is trying to do the same. It is very difficult way, but differently it is impossible.
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