THE ROLE OF FINANCIAL INSTITUTIONS FOR THE DEVELOPMENT OF THE SECURITIES MARKET

Authors

  • I. Yu. Fufalko Vasil Stefanyk Precarpathian National University, Ministry of Education and Science of Ukraine, Department of Finance, Shevchenko Str., 57, Ivano-Frankivsk, 76018

DOI:

https://doi.org/10.15330/apred.2.12.26-32

Keywords:

Financial markets, financial institutions, banking model of the financial market, collective investment institutions, securities markets, shadow banking sector

Abstract

The article investigates the role of financial institutions such as banks, insurance companies and collective investment institutions in the financial market of Ukraine and the European Union, and determines the impact of each of them on the securities market. Analysing the structure of financial markets of the EU and Ukraine was determined the share of assets of every type of financial institutions. This allowed us to estimate their role on financial market. Moreover, analyses of the assets` proportions that are invested on the stock market has allowed us to see the financial institutions` importance for the securities market. It was determined that, despite the banking model of the financial market in EU, role of banks for the securities market development is not decisive. A significant share of assets placed in securities by the insurance companies and shadow banking sector or, as it is called in Ukraine, collective investment institutions. The two last-mentioned sectors are underdeveloped in the Ukrainian financial market. This explains the lack of development of securities market of Ukraine.

JEL: G 20

Author Biography

I. Yu. Fufalko , Vasil Stefanyk Precarpathian National University, Ministry of Education and Science of Ukraine, Department of Finance, Shevchenko Str., 57, Ivano-Frankivsk, 76018

postgraduate

References

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3. Ukraine. National Bank. Surveys of Financial Corporations. N.p., n.d. Web.
4. European Central Bank. Banking Structure Report. N.p.: European Central Bank, 2014. Www.ecb.europa.eu. Web.
5. Moshenski, Sergei. Securities Market: Transformation Processes. Moskow: Economy, 2010. Print.
6. Duisenberg, Willem F. “The Role of Financial Markets for Economic Growth.” The Single Financial Market: Two Years into EMU. Oesterreichische Nationalbank, Vienna. 31 May 2001. Speech.
7. Kravets, Vyacheslav. “Institutional Factors of Investment Institutions` Development in Ukraine.” Bulletin of Kyiv National Taras Shevchenko University: Ekonomika 139 (2012): 50-53. Print.
8. Povoroznyk, Vasyl. Regarding the Implementation of the Investment Potential of the Private Pension System. National Institute for Strategic Studies. Department of Economic and Social Strategy. N.p., Dec. 2009. Web.

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Published

2016-04-26

How to Cite

Fufalko , I. Y. (2016). THE ROLE OF FINANCIAL INSTITUTIONS FOR THE DEVELOPMENT OF THE SECURITIES MARKET. The Actual Problems of Regional Economy Development, 2(12), 26–32. https://doi.org/10.15330/apred.2.12.26-32

Issue

Vol. 2 No. 12 (2016): THE ACTUAL PROBLEMS OF REGIONAL ECONOMY DEVELOPMENT"

Section

Financial market

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