Mozgoviy O.
Doctor of Economic Science, Professor, International Finance Department,
Vadym Hetman Kiev National Economic University, Kiev, Ukraine
Chivilenko L.
Assistant lecturer,
International Finance Department, Vadym Hetman Kiev
National Economic University, Kiev, Ukraine
INNOVATION IN THE GLOBAL FINANCIAL MARKET:
ASSESSMENT OF TRANSFORMATION
Introduction. At the current stage of development, world finances operate in a
context of financial globalization, which is a growing interconnection of countries on
the basis of increasing volumes and diversity of international currency, credit,
financial, settlement, stock, insurance operations. This is a complicated and
controversial process that not only contributes to accelerating economic development,
but also increases the risks of international financial transactions, greatly expands the
scope of local financial disasters. Exchange crashes, public finance crises that
previously occurred within a single country now spread to entire regions and may even
turn into world shocks. The economic lag of developing countries from developed
countries is intensifying, which leads to the emergence of fundamental differences
between them in political and social structures. As a consequence, the dependence of
the periphery on the center increases. Therefore, one of the tasks of the state is to
minimize its negative impact and maximize the positive. This is possible through a
well-balanced state policy to integrate the state into the global financial market. The
processes of financial globalization create fundamental changes in the functioning of
the world economy, particularly in the global financial system.
The development of financial innovation, the desire of market participants to
maximize profits and the rapid development of infrastructure elements of the market
lead to the constant emergence of increasingly complex structured financial
instruments. In this case, the rules and norms concerning the regulation of their
circulation become outdated very quickly.
Research result. When investigating the trends of the financial sector development
of the world economy in the context of the challenges of the fourth information
revolution, it is important to determine the role of innovation and technological
innovations in the formation of new forms and elements of the infrastructure of the
world financial market. These are virtual banks, financial and technical companies,
international electronic money systems, the digital currency market, the market for
contactless and mobile payments, P2P services, etc. (Table 1).
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