Teslia E.V., Prytomanova О.M., Mudrenko A.A.

Oles Honchar Dnipropetrovsk National University, Ukraine

PROSPECTS OF INTERNATIONAL FINANCIAL MARKET DEVELOPMENT

An international financial market develops in the conditions of financial globalization. Financial globalization is one of the processes of globalization, which is understood as a free and effective movement of capital between countries and regions, functioning of global market, forming the overnational adjusting international finances system, realization of global financial strategies of transnational corporations and transnational banks. In the view of afore-mentioned, a process of financial globalization is a component part of world globalization.

It is necessary to mark that the process of globalization develops unevenly in outer space. It concerns both separate directions of activity and separate countries, and also macroeconomic regions which unite countries both on the basis of geographical features and the level of development. Nowadays, the greatest level of globalization is attained in a financial sphere.

Basic factors entailed this situation in our opinion are the following:

1. Newest information technologies which connected basic financial centers and reduced significantly transactional charges of financial operations and time, necessary for them.

2. A change of financial institutions operational environment as a result of banks activity deregulation.

3. Emergency and development of new financial market instruments mainly based on a mechanism of hedging and risk management.

The acceleration of financial globalization process shows up in a high dynamics and growing number of currency and Eurocurrency markets, bank deposits in foreign currency, money, attracted from an international financial market, a considerable part of foreign financial resources in socio-economic development of individual countries.

In the modern stage the world economy and international markets are influenced by structural changes, which are important not because they just occur but in the way they co-operate. As a result it is necessary to mention some significant changes which take place in the world financial system. To avoid crisis, developed countries have to control noticeable changes of international capital streams, especially those which are connected with the developing countries.

The situation in the international financial market in its modern stage is characterized, on the one hand, by internationalization and standardization of operations and, on the other hand, by greater variety of financial operations. Consequently, it is important to know the situation worldwide in order to operate a financial market in the course of working out a strategy of its further development.

So, considering the basic features of international financial market development in the modern stage, it is possible to conclude that the leaders are such countries as the United States of America, Great Britain (The UK), Japan and economically developed countries of the EU, in spite of the fact that their part of financial operations makes more than a half of the world volume.

All this processes are taking place against the background that economically developed countries are “clear” borrowers, and it contradicts the base positions of the capital flow theory. Countries that are developing, in fact, finance the growth of the economically developed countries. It is also important to mark that nowadays there are some countries whose financial market is in its initial stage of development, but at the same time they have already had their positions and they influence insignificantly economically developed countries. First of all they are China and India and oil export countries as well.

Capital inflow into a country is a strong stimulus for the economy growth, and its outflow is a basic obstacle, that is why an important value is acquired by the uneven distribution of investments to different countries, and also their fluctuations. For the countries whose markets are forming far greater value has stability of capital inflow, than for the countries that get little or do not get any money from private oversea sources. It is important for growing markets if free capital receipts are accompanied with global financial stability, which is substantial pre-condition of a stable growth of world markets.

Ukraine's integration into the international financial space began with obtaining the right to conduct foreign trade and setting up in Kiev the Republican Office of Vnesheconombank of the former USSR, through which international payments were made. The second step was breaking up the monopoly of Vnesheconombank over international payments.

Despite the fact that a lot of work has been done since Ukraine became independent, there are still plenty of tasks:

- Reformation of the national financial system, namely standardization in accordance with international requirements of public finance, financial entities, international finance and financial markets;

- Harmonization of financial legislation;

- Access to world financial markets;

- Improvement of the system of international payments.

Ways for Ukraine to the global financial architecture are to cooperate actively with the WTO, to create new forms of cooperation with countries of the Customs Union (Russia, Belarus, Kazakhstan) in the format "3 +1" and pragmatic integration.

We should also highlight the issue of relations with international financial organizations. Since 1992, Ukraine has been a member of major financial institutions – the International Monetary Fund (IMF), International Bank for Reconstruction and Development (IBRD) and the European Bank for Reconstruction and Development (EBRD), which plays a significant role in providing national economies with credit and investment resources.

It should be noted that such cooperation, especially with the IMF, is considered by the global financial community as a fact of trust, evidence of country’s creditworthiness.

In today's global world space countries’ integration into the global financial system gives an opportunity to solve successfully the problems of national economic growth, increase social and economic development, cover budget deficits and discharge liabilities by domestic and foreign loans, etc.

Literature:

1. Belorus O.G. Economic system of hlobalyzm: monography / O.G. Belorus. – K.: KNЕU, 2003. – 376 p.

2. Byedina N.S. Status, problems and prospects of Ukraine's stock market / N.S. Byedina // Business industry. – 2008. – № 3. – S. 24-27.