Bìznes Inform (Sep 2020)
A Theoretical Conceptualization of Institutional Provision of the Financial Market
Abstract
The article is concerned with the problems of formation and development of institutional provision of the financial market. The relevance of the problem is caused by the relationship of formal and informal norms of economic processes and phenomena, the understanding of which provides the key to achieving the effectiveness of the financial market development. Understanding the essence of institutional provision of the financial market and the factors of its formation and development makes it possible to make more informed and effective decisions in the sphere of financial market development. The article is aimed at substantiating the conceptual approaches to the structuring of institutional provision of the financial market. It is substantiated that institutional provision of the financial market includes both formal and informal institutions. The formal institutions, in turn, consist of institutions-organizations and institutions-norms. The factors of occurrence of institutional deformations in the financial market are systematized. The institutions of the financial market are structured, in particular, in the composition of the institutions-norms the authors allocate the formal (international legal framework for concluding and implementing agreements in financial markets, national regulatory framework for concluding and implementing agreements in financial markets, norms of related national and international law, ensuring the conclusion and implementation of agreements in financial markets) and the informal norms (norms stipulated by religion, informal agreements and conspiracies between the financial market participants, unofficial (shadow) markets for the conclusion and implementation of financial agreements). In the composition of institutions-organizations the authors allocate the institutions-buyers of financial resources; institutions – sellers of financial resources; institutions that serve the functioning of institutions-sellers and institutions – buyers of financial resources; institutions-regulators. The institutional provision of the financial market is structured and the relationship between institutions-norms, institutions-rules and the State is defined. The principles of institutional provision of the financial market are substantiated and its functions are defined.
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