RISKS OF FINANCIAL SYSTEM IN THE CONTEXT OF DIGITAL TRANSFORMATION OF THE ECONOMY
A financial system reflects the dominant economic order and meets the demand for technological development at the national and supernational levels; moreover, it can ensure the sustainability and stability of the economy, keep the balance between the supply and demand in periods of crisis. The developed financial systems have the tools and mechanisms of regulation of actual wellness, employment, social security, and technological innovations support. The substitution of traditional financial relations during digital transformation influences the financial system structure and the financial processes essence. The paper presents the updating of definitions in terms of the research of the financial system, identification of structural changes influencing its stability, and the consequences of the entry of digital economy into the sphere of public finances, companies’ finances, and households’ finances. The author carried out the theoretical research of scientific approaches to the financial system structure and the financial market functioning and proved the financial system structure accepted for the analysis. Based on the empirical and economic and statistical methods, the author identified the factors caused by the digitalization processes and unpredictable events challenges, which influence the financial system and its structure. The study identified the imbalances and factors influencing the ensuring of the financial system stability. Among key imbalances, the author mentions the imbalances between the budgets of the budgeting system in terms of incomes and obligations; the deficiencies of long-term sources of financial assets; the little share of the non-bank financial sector. The author highlights the expansion of some segments of the financial market and the formation of a new type of economic entities of the financial system – technological platforms. Risks are classified and grouped by the financial system areas. The author proves that state financial regulation has a decisive effect on the development of the financial system in the context of digital transformation and should be aimed at the elimination of imbalances.
Xu M., David J.M., Kim S.H. The Fourth Industrial Revolution: Opportunities and Challenges. International Journal of Financial Research, 2018, vol. 9, no. 2, pp. 90–95.
Polozhikhina M.A. The digital economy as a socio-economic phenomenon. Ekonomicheskie i social'nye problemy Rossii, 2018, no. 1, pp. 8–38.
De Galhau F.V. Constructing the possible trinity of innovation, stability and regulation for digital finance. Financial stability in the digital era. Financial Stability Review, 2016, no. 20, pp. 7–13.
Yakunina A.V., Popov M.V. Digital finance and new risks for financial market participants. Vestnik Saratovskogo gosudarstvennogo socialno-ekonomicheskogo universiteta, 2018, no. 4, pp. 186–189.
Pertseva S.Yu. Fintech: mechanism of function. Innovatsii v menedzhmente, 2017, no. 12, pp. 50–53.
Danilov Yu. Disbalances of the Russian Financial System and the Possibility of Their Overcoming. Ekonomicheskoe razvitie Rossii, 2017, vol. 24, no. 4, pp. 58–68.
Kheyfets B.A. Global Imbalances and the Reform of the International Monetary and Financial System. Dengi i kredit, 2012, no. 7, pp. 48–56.
Frisari G., Gallardo M., Nakano C., Cárdenas V., Monnin P. Climate Risk and Financial Systems of Latin America Regulatory Supervisory and Industry Practices in the Region and Beyond. USA, Inter-American Development Bank Publ., 2019. 116 p.
Baily M.B., Douglas J.E. The Role of Finance in the Economy: Implications for Structural Reform of the Financial Sector. Washington, Brookings Institution Publ., 2013. 34 p.
Cuhal R., Starițîna L., Basistî N. Financial system and modern monetary mechanism. Journal of Financial and Monetary Economics, 2014, vol. 1, no. 1, pp. 85–91.
Pyatkovskaya Yu.V. Russia’s financial system as a basic category of financial science and science of financial law: approaches to definition. Baikal Research Journal, 2016, vol. 7, no. 2, pp. 20–30.
Shevchenko L.M. Financial system functions. Vestnik Tambovskogo universiteta. Seriya: Gumanitarnye nauki, 2012, no. 2, pp. 194–198.
Brodie Z., Merton R.C. A conceptual framework for analyzing the financial system. The Global Financial System: A Functional Perspective. Boston, Harvard Business School Press Publ., 1995, pp. 15–25.
Dutton W., Pister K., Varian H., Bernard R., Salkowitz R., Bughin J., Chui M., Manuika J. Clouds, big-data, and smart assets: Ten tech-enabled business trends to watch. McKinsey Quarterly, 2010, no. 4, pp. 1–14.
Eskindarov M.A., Maslennikov V.V., eds. Novye traektorii razvitiya finansovogo sektora Rossii [New trajectories of development of the financial sector of Russia]. Moscow, Kogito-Tsentr Publ., 2019. 367 p.
Vorobev Yu.N., Borshch L.M. Financial System: An Integrated Approach in the Context of the State Financial Policy. Finansy: teoriya i praktika, 2018, vol. 22, no. 5, pp. 56–75.
Merino-Saum A., Clement J., Wyss R., Baldi M.G. Unpacking the Green Economy concept: A quantitative analysis of 140 definitions. Journal of Cleaner Production, 2020, vol. 242, article number 118339.
Rateiwa R., Aziakpono M. Non-bank financial institutions and economic growth: Evidence from Africa’s three largest economies. South African Journal of Economic and Management Sciences, 2017, no. 20, pp. 1–11.
Tan Z.B., Yao Y., Wei S.J. Financial structure, corporate savings and current account imbalances. Journal of International Money and Finance, 2015, vol. 54, pp. 142–167.
Corbet S., Lucey B., Urquhart A., Yarovaya L. Cryptocurrencies as a financial asset: a systematic analysis. International Review of Financial Analysis, 2019, vol. 62, pp. 182–199.