The Conceptual Framework for the Operation of Financial Systems in the Context of Global Structural Transformations of Business Models of Banking

Abstract

The authors reveal fundamental tendencies of banks financial intermediation especially in the sphere of shadow banking and off-balance writes-off. Substantial transformations of financial system structure caused by liberalization of financial legislation, invention of brand new financial instruments and special risk-transferring schemes (special purpose entities via special investment vehicles) and the gradual process of banking universalization specifically the approximation of business models conducted by traditional commercial and investment banks created grounds for the review of current approaches to financial systems classification. The objective of the study is to identify operative patterns and specifics of financial systems in the context of global structural transformations of business models in the bank sector. Methodology. The methodological basis of the study is formed by theoretical works of foreign and domestic experts on issues related with financial systems worldwide, and the statistical data on the operation of banks in various countries, normative documents of prominent international economic institutions. The general scientific methods of analysis and synthesis, abstraction, quantitative and qualitative comparisons, descriptive analysis, analysis of the current performance of the financial system are used in elaborating theoretical and methodological framework for the typology of national financial systems by position and role played by banks in the financial system. Results. The central objective of the financial system is to transfer temporarily free financial resources from its actors that have their surplus to the ones that feel the deficit of funds. National financial systems can, therefore, be classified by the way domestic companies raise funds they need.

Research of globalization influence to paradigm change in financial services

“…According to derived data following preliminary results of the research was obtained after application of mean average formula (1) as it is shown in table 3. It was 0 values for the category "V" for 2017 [11][12][13], 2018 [14][15][16][17][18] and 2019 [19][20][21][22] publishing years, but in only one case in 2020 [23] all categories had their respective values.…”

“…SHS Web of Conferences 92, 0 (2021) Globalization and its Socio-Economic Consequences 2020 In table 4 there is full representation of value per each of 20 inspected article. However, in order to better understand the tendency which is actually in line with main research question of the article, it was decided to make visualization of the data for the articles of 2010 [29], 2012 [30], 2015 [27], 2016 [28] and 2017 [11][12][13], 2018 [14][15][16][17][18], 2019 [19][20][21][22], 2020 [23][24][25][26] separately by using graphical tools of the Excel program.…”

“…Indeed, it is different scale as it was analyzed 16 articles during that period. The lines of technology "T" and globalization "G" demonstrated steady decline from 2017 all the way till 2019 [11][12][13][14][15][16][17][18][19][20][21][22]. However, the traditional financial institution agenda sky rocketed in 2018 [14][15][16][17][18] till joining to the decreasing team of blue and orange line in 2019 [19][20][21][22].…”

“…According to that formula (1) all the values from data set (see table 4), in this case values (total number of words per category) derived from each article, were added up and then divided to the number of articles within the one-year range. In this way data from articles within the range of 2017 (3 articles) [11][12][13] 2018 (5 articles) [14][15][16][17][18], 2019 (4 articles) [19][20][21][22] and 2020 (4 articles) [23][24][25][26] are analyzed separately from the rest publishing years. See table 3.…”

Blockchain Technology in the Financial Ecosystem

“…Financial systems are subject to transformations, which are the characteristic feature of the economic systems of many developed countries in the world [1]. Substantial transformations of the structure of the financial system are due to the liberalization of financial legislation, the invention of new financial instruments and the gradual universalization of banking activities [2].…”