FINANCIAL AND ECONOMIC REGULATION

KOVALCHYK Andrey Trofymovych

Shadow banking in the geofinancial sphere

In the article the unexplored category of ""shadow banking” is analyzed. The system of argumentations and proofs is given with an aim to outline the place of this phenomenon in a geofi- © Ковальчук А. Т., 2014 Фінансово-економічне регулювання 68 ""Фінанси України”, 1’2014 nancial space. Insufficient role of financial and legal regulators on national and global levels is underlined. In recent years shadow processes have gained unprecedented scope and actually take place primarily in the distinctive geofinance space. Thus it implies abnormal organization of financial activities and financial relations, spatial interpenetration of wide variety of financial flows and the main components of national financial systems, the global interconnection of modern financial markets. In this sense, it is appropriate to note that financial and legal regulation, which was successfully used in the Soviet period, is not appropriate for the market system. Unfortunately, in the present circumstances there is no reason to speak about the presence of capable, active field of financial law in the country, which by definition should have to provide a practical orientation and procedural significance. Since the post-crisis economy at global level requires more effective management of financial risks, the urgent need in applying instruments of risks’ redistribution, reverse hedging, and divergence has appeared.

Keywords: CLS-system, geofinancial space, globalization, shadow banking.

JEL: F55, F65

KOVALCHYK A. T. Shadow banking in the geofinancial sphere / A. T. KOVALCHYK // Фінанси України. - 2014. - № 1. - C. 67-75.