{"id":14167,"date":"2020-09-20T10:00:34","date_gmt":"2020-09-20T07:00:34","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=14167"},"modified":"2020-09-20T12:59:58","modified_gmt":"2020-09-20T09:59:58","slug":"macroprudential-regulation-in-ensuring-of","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/macroprudential-regulation-in-ensuring-of\/","title":{"rendered":"Kovalenko V., Sheludko S. Macroprudential Regulation in Ensuring of the Development of Financial Markets"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n
JEL Classification<\/strong>: E44, E58, G20, G21
\n<\/span><\/td>\n		DOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V22(2020)-04<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][vc_column_text]<\/p>\n

Kovalenko Victoria<\/strong>, Doctor of Economics, Professor, Department of Banking, Odessa National University of Economics, Odessa, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0003-2783-186X<\/a>
\ne-mail:<\/strong> kovalenko-6868@ukr.net<\/a><\/p>\n

Sheludko Sergii<\/strong>, Candidate of Economic Sciences, Assistant Professor, Department of Banking, Odessa National University of Economics, Odessa, Ukraine<\/p>\n

ORCID ID:<\/strong> 0000-0003-0636-4940<\/a>
\ne-mail:<\/strong> s.szeludko@gmail.com<\/a><\/p>\n

 <\/p>\n

Macroprudential Regulation in Ensuring of the Development of Financial Markets<\/h2>\n

 <\/p>\n

Abstract. Introduction<\/strong>. The study has confirmed that ensuring of financial markets\u2019 development stability is connected with the development of an effective system for macroprudential regulation. The financial crisis has shown that price stability is not enough to ensure financial stability. The financial and business cycles are not synchronized \u2013 therefore risks can arise, especially during periods of \u201cdisconnection\u201d between two cycles.<\/p>\n

Purpose<\/strong>. The aim of the paper is to systematize basic concepts of macroprudential regulation in financial markets, considering international practice of its instruments selection and usage.<\/p>\n

Results<\/strong>. It is clarified the approaches to a set of macroprudential instruments formation which depends on the country\u2019s economic development and the vulnerability of a financial sector to internal and external shocks. It has been substantiated that monetary regulation is aimed at ensuring price stability in the market for goods and services. It has been proven that it should not be used to address hotbeds of volatility in asset markets. This is a subject for macroprudential regulation, aimed to ensuring the stability of financial markets and containing systemic risk. It has been identified the factors causing the need to implement the strategy of macroprudential regulation in financial markets to ensure their stable development. They include: systemic risk and financial cycles; considering the importance of a growing market\u2019s credit system and measures to address its risks; the need to increase the transparency of the shadow banking sector; problems in regulating the FinTech branch; international financial standards; the growing role of the central periphery in international finance.<\/p>\n

Conclusions<\/strong>. It has been concluded that a powerful macroprudential political mandate and an adequate set of instruments should be given for central banks to solve the problem of increasing financial risks, especially in situations where monetary regulation is adaptive. It has been substantiated the conclusion about the need to develop supervisory and coordination mechanisms in the financial market and the introduction of end-to-end monitoring of systemic risks as a prerequisite for restoring financial stability.<\/p>\n

Keywords<\/strong>: financial cycle; financial market; financial stability; macroprudential regulation; systemic risk.<\/p>\n

References:<\/strong><\/p>\n

    \n
  1. Claessens, S., Ghosh, S. R. & Mihet, R. (2014). Macro-Prudential policies to mitigate financial system vulnerabilities. Journal of International Money and Finance<\/em>, 39, 153-185.<\/li>\n
  2. Ken\u00e7, T. (2016). Macroprudential regulation: history, theory and policy. Bank for International Settlements<\/em>, 86, 15.<\/li>\n
  3. Kozyuk, V. (2018). Dissemination of macroprudential regulation and benchmarks of NBU macroprudential policy. Journal of the European Economy<\/em>, 17, 2 (65), 185-207 [in Ukrainian].<\/li>\n
  4. Naumenkova, S. & Michenko, V. (2015). Macroprudential instruments in the mechanism to ensure financial stability. Finansy Ukrayiny<\/em>, 10, 53-76 [in Ukrainian].<\/li>\n
  5. Demirg\u00fc\u00e7-Kunt, A. & Levine, R. (2001). Financial Structure and Economic Growth. A Cross-Country Comparison of Banks, Markets, and Development<\/em>. Cambridge, MA: MIT Press.<\/li>\n
  6. Khoruzhyi, S. (2019). Consolidation of institutional support of regulation and supervision functions financial institutions. Biznes Inform<\/em>, 3, 337-342 [in Ukrainian].<\/li>\n
  7. Kizima, G. (2011). Models of regulation of financial markets: essence and features. Derzhavne upravlinnya: vdoskonalennya ta rozvytok<\/em>. Retrieved from: http:\/\/www.dy.nayka.com.ua\/?op=1&z=369.<\/li>\n
  8. Melecky, M. & Podpiera, A. (2012). Institutional structures of financial sector supervision, their drivers and emerging benchmark model<\/em>. World Bank, Technical University of Ostrava, MPRA Paper.<\/li>\n
  9. Beck, T. & Levine, R. (2004). Legal Institutions and Financial Development<\/em>. NBER Working Paper. No 10417. Cambridge, Mass.<\/li>\n
  10. Calvo, D., Crisanto, J.C., Hohl, S. & Gutierrez, O.P. (2018). FSI Insights on policy implementation No 8. Financial supervisory architecture: what has changed after the crisis?<\/em> Financial Stability Institute. Bank for International Settlements.<\/li>\n
  11. Naumenkova, S. & Michenko, V. (2010). Rehulyuyuchi systemy Rynky finansovykh posluh zarubizhnykh krayin<\/em>. Kyiv: Naukovo-doslidnyy tsentr NBU; Universytet bankivs\u02b9koyi spravy<\/li>\n
  12. Yashchishchak, O. (2011). Models of state regulation financial services market. Yuryst<\/em>, 3, 28\u201333 [in Ukrainian].<\/li>\n
  13. Group of Thirty. (2008). The structure of Financial Supervision Approaches and Challenges in a Global Marketplace<\/em>. Washington, DC.<\/li>\n
  14. Kovalenko, V. (2014). Macroprudential policy in the context of the formation of a new paradigm of banking regulation and supervision. Visnyk ONU imeni I.I. Mechnykova<\/em>, 19, 109-113.<\/li>\n
  15. Kovalenko, V. & Radova, N. (2019). Monitoring the financial stability of the banking system of Ukraine. Skhidna Yevropa: ekonomika, biznes ta upravlinnya, 2 (19), 321-330.<\/li>\n
  16. Implementation of Basel III \u2013 Executive Summary. Transitional arrangements and the RCAP process. (2019). Financial Stability Institute. 31 October. Retrieved from: https:\/\/www.bis.org\/fsi\/fsisummaries\/imp_basel3.pdf.<\/li>\n
  17. Top 1000 World Banks ranking (2019). The Banker. Global Financial Intelligence Since. Retrieved from: http:\/\/www.thebanker.com\/Top-1000.<\/li>\n
  18. Basel 4: Emerging from the mist? (2013). KPMG. September. 10 p. Retrieved from: https:\/\/assets.kpmg\/content\/dam\/kpmg\/pdf\/2013\/09\/emerging-from-the-mist.pdf.<\/li>\n
  19. Basel 4: The way ahead. Piecing the jigsaw together. (2018). KPMG. May. 10 p. Retrieved from:\u00a0 https:\/\/assets.kpmg\/content\/dam\/kpmg\/xx\/pdf\/2018\/05\/ basel-4-piecing-the-jigsaw-together.pdf.<\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received:<\/strong> 29 July 2020<\/p>\n

    \"kovalenko.pdf\"<\/div>
    kovalenko.pdf<\/div><\/div>
    <\/div>
    <\/div>
    Size: <\/span>0.45 Mb<\/span><\/div>
    Download Now!<\/a><\/span>369<\/span> Downloads<\/span><\/span><\/div><\/div>
    <\/div>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n\n
    \n

    How to quote this article?<\/p>\n<\/td>\n<\/tr>\n

    Kovalenko V., Sheludko S. (2020). Macroprudential Regulation in Ensuring of the Development of Financial Markets. Modern Economics<\/em>, 22(2020), 24-30. DOI: https:\/\/doi.org\/10.31521\/modecon.V22(2020)-04.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]<< Back to contents<\/a>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n

    <\/div>\n

    <\/p>\n<\/section>","protected":false},"excerpt":{"rendered":"

    [vc_row][vc_column][vc_column_text] JEL Classification: E44, E58, G20, G21 DOI: https:\/\/doi.org\/10.31521\/modecon.V22(2020)-04 [\/vc_column_text][vc_column_text] Kovalenko Victoria, Doctor of Economics, Professor, Department of Banking, Odessa National University of Economics, Odessa, Ukraine ORCID ID: 0000-0003-2783-186X e-mail: kovalenko-6868@ukr.net Sheludko Sergii, Candidate of Economic Sciences, Assistant Professor, Department of Banking, Odessa National University of Economics, Odessa, Ukraine ORCID ID: 0000-0003-0636-4940 e-mail: s.szeludko@gmail.com  
    Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":13475,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[136],"tags":[137],"_links":{"self":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/14167"}],"collection":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/comments?post=14167"}],"version-history":[{"count":0,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/14167\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/media\/13475"}],"wp:attachment":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/media?parent=14167"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/categories?post=14167"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/tags?post=14167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}