FEATURES OF FINANCIAL MARKET REGULATION IN COUNTRIES

Abstract

This study examines financial markets, which are a special type of market in which there is an opportunity to sell and buy assets, such as foreign currency, bonds, stocks, and derivatives. Thus, a developed securities market provides support for economic growth, more efficient capital allocation, improves the trade balance, promotes better risk development, diversification, or ensures financial stability. Regulatory regulation protects consumer deposits, increases the transparency of investment projects and provides the bank with sufficient capital in the event of a more serious financial downturn.

In order for the capital market to be effective, it is necessary to properly establish its legislative framework, taking into account the investment base and the political and economic balance of the state. Financial intermediaries and, in particular, banks play an important role in the development of the capital market. The key role of the banking sector is to transfer financial resources, transfer risks and ensure a stable financial system. Banks and other financial institutions operating in the financial market should monitor and control their financial activities.

Over the past few decades, the global financial industry has been experiencing development trends in certain areas: globalization, development in the field of financial innovation and the introduction of IT technologies. The result of such active development was a rapid increase in the efficiency of financial markets, and a significant expansion of the range of financial products and services offered made them more accessible to all categories of investors. But with such a fast–growing and changing nature of development, activities become more complicated, new risks appear that need to be identified and controlled.

The purpose of this work is to study the ways of forming financial markets abroad.