New regulations in the development of a financial market


  • A. Tsintsadze Batumi Shota Rustaveli State University
  • I. Vashakmadze Batumi Shota Rustaveli State University
  • I. Tavadze Batumi Shota Rustaveli State University
  • L. Meloyan-Phutkaradze Batumi Shota Rustaveli State University
Keywords: Insurance Market; Securities Market; Banking Market.

Abstract

Effective functioning of a financial market has a key role in the development of a country's economy. Developing countries experience lack of funds, one of the best ways to attract investment capital is the development of the right direction of the securities market, credit market and insurance market that are served by the regulations adopted in this field, which are derived from the Association Agreement. It can be said that a new phase starts with new regulations on the market of financial institutions. Current regulations are directed to the solvency of the insurance company, the use of mechanisms for maintaining financial sustainability, and the rule of formation and placement of reserves. However, there are no regulations for the development of life insurance. According to the new regulations, we think that in 2019 banking sector will be significantly different from the 2017 situation. In the short term, it will bring down retail lending, increase expenditures in the sector, increase demand on capital and reduce profitability, and in the long term we should hope that it will contribute to the improvement of the financial system of Georgian financial system, which will ensure financial sustainability of the banking system. Regulations concerning the development of the securities market, here a pension reform is important, which has come into force since January, 2019. As a result of this, the state accumulative pension system started in which large amounts of accumulated funds will be invested in local securities, in the local economy. The research objective: To determine the effectiveness of new regulations on the financial market, the purpose of implementing regulations is to improve the quality of the banking system, the securities market, the insurance market, and the sustainable development of the economy.

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Abstract views: 48
PDF Downloads: 44
Published
2019-02-28
How to Cite
Tsintsadze, A., Vashakmadze, I., Tavadze, I., & Meloyan-Phutkaradze, L. (2019). New regulations in the development of a financial market. Fundamental and Applied Researches in Practice of Leading Scientific Schools, 31(1), 224-228. https://doi.org/https://doi.org/10.33531/farplss.2019.1.43