Conceptualization of Financial System Sustainability

Abstract

The paper aims at distinguishing the assumptions and component parts of financial system sustainability formation. Partly, sustainability of financial system can be expressed through the functions of financial system. Three financial subsystems are distinguished in the research: public finance, business finance and personal finance. The sustainable and efficient operation of each subsystem contributes to the sustainability of financial system as a whole. Also, sustainability of each of the subsystem can be measured by different indicators. In order to determine the strength of impact of various financial functions to the financial system such indicators as capital investments into financial and insurance activities, financial and insurance activities' value added, as well as value of production and purchase of goods and services by the financial companies is analysed. Finally, the scheme of financial system sustainability is presented. The key conclusion of the research states that the synergistic effect of sustainable development of three fields of finance influences the sustainable development of the whole financial system and even can spread its impact beyond the limits of financial system.

Overconfidence, risk aversion and individual financial decisions in experimental asset markets

“…Evidence presented in this paper could be of benefit to policy-makers: our results indicate that psychological bias of overconfidence could be harming investors' wealth, which in turn can have negative macroeconomic consequences and harm sustainable economic development (Dubauskas, 2016;Kulišauskas & Galinienė, 2015;Laužikas & Krasauskas, 2013;Peker, Tvaronavičienė, & Aktan, 2014;Stasytytė, 2015;Tvaronavičienė, 2014). Therefore, we suggest that governments should invest in increasing individual financial literacy, which will help to mitigate the impact of overconfidence on investment decisions and to achieve sustainable management of individual finances (Ciemleja, Lace, & Titko, 2014;Dubauskas, 2016;Kalyugina, Strielkowski, Ushvitsky, & Astachova, 2015;Njaramba, Chigeza, & Whitehouse, 2015).…”

The impact of regime-switching behaviour of price volatility on efficiency of the US sovereign debt market

“…So, markets should follow a random walk in the short-term as stated by Malkiel (2003). Though these assumptions do not always reflect the real picture, since market participants in reality are affected by an array of factors, such as obvious structural changes of economy (Akhmadeev & Manakhov, 2015;Dezellus, Ferreira, Pereira, & Vasiliūnaitė, 2015;Dudzevičiūtė, Mačiulis, & Tvaronavičienė, 2014;Korsakienė & Tvaronavičienė, 2014;Oganisjana, Surikova, & Laizāns, 2015;Prause, 2015;Rezk, Ibrahim, Tvaronavičienė, Sakr, & Piccinetti, 2015;Shatrevich & Strautmane, 2015;Travkina & Tvaronavičienė, 2015;Tvaronavičienė & Černevičiūtė, 2015;Tvaronavičienė, Mačiulis, Lankauskienė, Raudeliūnienė, & Dzemyda, 2015;Wahl, 2015), economic growth mode, external and internal threats (Balitskiy, Bilan, & Strielkowski, 2014;Ignatavičius, Tvaronavičienė, & Piccinetti, 2015;Kalyugina, Strielkowski, Ushvitsky, & Astachova, 2015;Lankauskienė & Tvaronavičienė, 2012;Munteanu & Tamošiūnienė, 2015;Stasytytė, 2015), approaches towards innovations and decision-making patterns (Bistrova, Lace, & Tvaronavičienė, 2014;Čirjevskis, 2015;Dobele, Grinberga-Zalite, & Kelle, 2015;Lace, Natalja, & Rumbinaite, 2015;Mostenska & Bilan, 2015;Olaniyi & Reidolf, 2015;Rosha & Lace, 2015;Šimberová, Chvátalová, Kocmanová, Hornungová, & Pavláková Dočekalová, 2015;Slapikaitė, Tamošiūnienė, & Mackevičiūtė, 2015;Tvaronavičienė & Černevičiūtė, 2015;Tvaronavičie...…”

Camels+t approach for banks’ assessment: evidence from the Baltics

“…Scientists from various countries widely analyse the concept of financial sector soundness, as soundness is one of the most important factors, promoting sustainable development of banking sector itself and important factor of sustainable development of countries (Al-Khouri, Arouri, 2016;Motelle, Biekpe, 2014;Lui, 2013 Kaźmierczyk, 2012;Milvydienė, 2012;Lankauskienė, Tvaronavičienė 2012;Stasytytė 2015;Fuschi, Tvaronavičienė 2014;Kalyugina et al, 2015;Korauš et al, 2016).…”