THE STATE AND DEVELOPMENT TRENDS OF THE CURRENT INTERNATIONAL FINANCIAL ENVIRONMENT
DOI:
https://doi.org/10.56197/2786-5827/2024-3-1-4Keywords:
International financial environment, European market, banking institutions, financial institution, financial marketAbstract
Introduction. The modern world is marked by unprecedented changes in all spheres of society's life, starting with social and cultural transformations and ending with significant shifts in financial and economic life. At one time, the outstanding and progressive theorist of state development N. Machiavelli warned that any changes were designed to pave the way for other changes in the future, that is, the process of transformation is permanent and irreversible.
In contrast to the progressive stability of the past, the modern world faces significant economic, environmental and social turbulence, as well as rapid and constant technological progress. Recent events, such as the COVID-19 pandemic and the Russian-Ukrainian war, have completely disrupted business processes, logistical connections, social and cultural relations. All these consequences have also significantly affected the international financial climate and interaction between countries, increasing uncertainty about the future.
Materials and methods. The main sources for our analysis are official reports of international financial organizations and modern studies of international analysts and observers.
Results and discussion. The current state and development trends of the international banking space are primarily due to the consequences of the spread of the COVID-19 pandemic, on the one hand, and on the other hand, the need to review the close relationships between European banks and the banking system of Russia. In the immediate aftermath of the pandemic, the financial sector, particularly banks, were expected to play an important role in absorbing the shock by providing vital credit to the corporate sector and households. In an effort to facilitate this, central banks and governments around the world, and in the European Union in particular, have introduced a wide range of policy measures to provide more liquidity and support the flow of credit. An important policy question has become the potential impact of this counter-cyclical lending policy on the future stability of banking systems and the extent to which their capital positions, strengthened since the global financial crisis, will allow them to absorb this shock without undermining their resilience.
Conclusions. The global economic slowdown and Russia's war in Ukraine are creating uncertainty and volatility in global markets, increasing pressure on bank earnings. Climate change as a long-term risk is further threatened by increased financial market volatility due to more frequent natural disasters. On the other hand, increased competition caused by fintech companies, rising regulatory compliance costs, cyber security threats and changing customer expectations require Europe's multinational banks to invest in new technologies and attract and retain the best talent to remain competitive.
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