Garbar Z. Financial Market in the System of Economic Development

Developed is the institutional and functional model of a system of balanced functioning of the financial market and its effect on a country's economic development. Substantiated is the concept of shaping national policy in the field of financial market development. Methodological foundations of determining the extent of interdependency between the development level of the financial market institutional structure and a nation's economy are suggested. Institutional fundamental principles of the mechanism of the financial market government regulation, which are based on a set of forms, methods and instruments of influencing the financial market functional and infrastructural institutions by regulatory authorities, are worked out. Improved are: approaches to determining the institutional structure of the financial market as a set of financial institutions; proposition as to substantiating the influence of dominating factors on developing the competitive environment for non-banking financial institutions functioning in the system of economic development; a set of classifying features of financial institutions; approaches to determining the place of the financial market in the system of a country's economic development; methodological foundations of evaluating the efficiency of government regulation of the financial market. Best practices of the financial market functioning in developed and transitional economies are generalised and systematised. Developed is the idea of determining the effect of a bank rate on credit volume and cost of borrowing with regard to earning power of deposits. Substantiated are approaches to determining necessary and sufficient conditions of the national financial market integration into the global financial market. Considered are approaches as to substantiating a possible type of institutional regulations of the financial market as well as the proposition as to determining the effect of globalisation on the financial market based on applying ratings in the world economic system. Substantiated are lines of the home market integration into the global financial market, which suggest strengthening of cooperation of the domestic banking sector with financial sectors of developed economies as well as developing modern stock market infrastructure with a view to draw in overseas corporations onto the exchanging market.