Financial systems of the main EU member states - in international...

Financial systems of the main EU member states - in international finance and on the world market

General characteristics of financial systems and financial markets of leading EU countries

National financial systems and international finance

International finance is, ultimately, a derivative of national financial systems, and most notably the largest of them. The US, the EU, Japan and China form a kind of core of international finance. At the same time, a fast group of fast-growing developing countries of Asia, Latin America and Africa, whose financial systems are also included in the system of the global financial system, is rapidly strengthening its financial and economic position. Therefore, in this chapter we will consider some aspects of national financial systems, paying attention to the banks of these countries, showing high activity in the system of international finance.

The financial systems of Western European countries are the oldest in the modern world, they have a long history of development. Banks Genoa, Venice, Florence appeared in the XIII-XIV centuries., Dutch, London and Scottish banks - in the XVII century. Much later, there were French, Dutch, Spanish, Swedish-Danish banks. However, for a number of reasons, they have not reached the stage of maturity that was characteristic of London banks and the whole British financial system, at least since the eighteenth century.

In recent decades, European financial integration has been given a new dynamism through a system of important political, economic and administrative decisions of a regulatory nature. The EU's unified financial policy is a reality, and the financial institutions themselves, implementing this policy, simultaneously implement institutional changes, adequately reflecting both financial integration processes and general requirements in the area of ​​financial and economic adaptation. The global crisis of 2008-2010. and the worsening financial situation of many countries in the eurozone in 2011-2012. showed the need for deepening international cooperation, closer interaction and coordination in this area.

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The securities markets in Europe continued to develop autonomously for a long time, despite the ongoing unification process within the EU, presumably due to the fact that in the first stages of European construction, other tasks were prioritized. Although in the most general form, the Treaty of Rome on the establishment of the EEC required member states "to consistently eliminate the restrictions in the movement of capital", the practical activity in this direction lagged far behind the actual economic integration. In 1985, the Commission of the EEC (CES) prepared a White Paper entitled "Improvement of the Internal Market". In the field of finance, it aimed at the complete liberalization of capital flows, the unification of national financial services markets and the creation of general regulatory structures for financial institutions. As the monetary union was formed, the task of creating the "Efficient Market Community", which enables us to complete the work on creating the same conditions as in the markets of the USA and the Pacific, was actualized. The securities market of the EEC can compete and even surpass these other markets once its parts are brought together. " - so the leaders of the Common Market formulated their future goals more than a quarter of a century ago. Accordingly, the unification of securities markets became a potentially important factor at that time, not only for trade between the EU and third countries, but also as a whole to strengthen the position of the EU and accelerate the unification processes within the EU. These tasks were generally fulfilled when most of these countries switched to a single monetary system and the euro began to compete successfully with the dollar.

However, the single currency has not solved many problems. The causes of the traditional fragmentation of European markets lie in the differences in the socio-political and economic structures of countries and securities markets, the existence of different mechanisms for their regulation. In each of them, their historically developed financial systems, institutions, despite the general monetary system - euro in the euro area countries. In the course of the long evolution over the centuries, specific trade and financial mechanisms, banks and securities market legislation, regulating bodies and conciliation mechanisms were created - they are difficult to refuse from them in a short time in favor of unified models.

In the 1990's. and in the first decade of the XXI century. the EU countries implemented reforms in the structure of the capital market and its regulatory system, which made it possible to create a fairly competitive trade and financial system in Europe, including competitive capital markets. The international securities market (Eurobond market) for a long time provided an integrated market, open to major European corporate and independent borrowers. Over time, the differences between domestic securities issues and European (within the EU) have come to naught. The principal cause of these differences was previously the features of national regulation, especially tax legislation. The governments unified the taxation to increase the demand for government securities from non-resident investors. The reforms implemented also reduced the discrepancies in regulation and functioning between the various markets of government bonds. Arbitration transactions were simplified, and the process of integration led to the fact that the domestic market began to lose its significance. One of the reasons for this was the opportunity for banks to offer financial services abroad. As a result, the EU countries have obtained comparative freedom in making transactions not only within the borders of the union itself based on the rules of trade established by the Treaty of Rome, but also between EU members and third countries.

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Under the deregulation policy that dominated the period from the early 1980s, and up to 2008, such instruments as swap markets,> increasing the participation of non-profit banks in trading in financial assets and creating investment portfolios as a result of general securitization began to play a major role. With the introduction of ICT, it became possible to sell and buy financial assets through the electronic exchange (as opposed to the traditional mechanism of stock exchange trading of securities, in which the role of intermediary is great) far beyond the country of issue. Financial markets in Europe rapidly increased in scale, far outperforming the real sector of the economy in terms of growth. Details of the formation of the European monetary system and its regulation, we will consider further. Now let us dwell on some features of this regulation.

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