The Modern Financial Conglomerates Competition

82
DOI: 10.20542/0131-2227-2021-65-8-14-21
S. Dubinin (dsk@vtbcapital.com),
Lomonosov Moscow State University (MSU), 1, buil. 46, Leninskie Gory, Moscow, 119991, Russian Federation;
VTB Capital JSC, Vorontsovskaya Str., 43, buil. 1, Moscow, 109147, Russian Federation

Received 02.03.2021.

Abstract. The national and worldwide financial markets were dramatically reorganized in the after financial crisis 2007–2009 years period. The financial systems development faced new macroeconomic environment. The financial conglomerates are actively competing on the financial markets in now day situation. The financial institutes’ competitiveness is determined more and more by the factor of financial innovations on the information technology base. And the competition is escalating. This is the result of the IT companies, eCommerce firm’s invasion in the financial area. They are using the marketplace, information platform, the Big Data technologies. The major world commercial banks answer is the business-model change. The banking sector, the financial companies, in their turn, are targeting to expend their personal client service orientation with the Fintech ecosystems instruments. The banks became the management centers of the financial conglomerates and banking groups. Their role today is realizing the asset control over the SPV, investment funds, pension funds, insurance companies, which are transformed into the financial conglomerate’s divisions. The financial sphere space extends and so far, the prudential regulation and authorities’ activity spreads to all financial business aspects. This government activity is targeting today also on the international multipole competition. For example, the USA technological and financial innovations on the global financial markets are combined with the multilateral and unilateral economic sanctions aimed at banning the Chinese economic and political expansion.

Keywords: financial conglomerates, banking groups, IT companies, Big Data, Fintech, financial ecosystems, financial innovations, new business model, antitrust law regulation, prudential regulation authorities


REFERENCES

  1. Sahay R., Allmen von U.E., Lahreche A., Khera P., Ogawa S., Bazarbash M., Beaton K. The Promise of Fintech. Financial Inclusion in the Post COVID19 Era. IMF, July 1, 2020. 83 p. Available at: https://www.imf.org/en/Publications/Departmental-Papers-Policy-Papers/Issues/2020/06/29/The-Promise-of-Fintech-Financial-Inclusion-in-the-Post-COVID-19-Era-48623 (accessed 13.02.2021).
  2. Khudyakova L.S. Ten years of the global reform of financial regulation: what is ahead? MGIMO Review of International Relations, 2019, no. 12 (5), pp. 91-113. (In Russ.) Available at: https://doi.org/10.24833/2071-8160-2019-5-68-91-113 (accessed 13.02.2021).
  3. Golovnin M.Y. Transformation of the global financial system in the first two decades of the twenty-first century. Outlines of Global Transformations: Politics, Economics, Law, 2020, no. 13 (4), pp. 74-96. (In Russ.) Available at: https://doi.org/10.23932/2542-0240-2020-13-4-4 (accessed 13.02.2021).
  4. Yan A. Value of Conglomerates and Capital Market Conditions. International Journal of Financial Management, 2006, vol. 35 (4), pp. 3-5. Available at: https://doi.org/10.1111/j.1755-053X.2006.tb00157.x (accessed 13.02.2021).
  5. Laeven L., Levine R. Is there a Diversification Discount in Financial Conglomerates? Journal of Financial Economics, 2007, August, vol. 85 (2), pp. 331-367. Available at: https://doi.org/10.1016/j.jfineco.2005.06.001 (accessed 13.02.2021).
  6. Basel Committee on Banking Supervision 2001. Compendium of Documents Produced by the Joint Forum. Basel, Bank for International Settlements, July 20201. 156 p. Available at: https://www.bis.org/publ/joint02.pdf (accessed 26.02.2021).
  7. Financial Conglomerates Directive 2002/87/EC. Document 32002L0087. Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002. Available at: http://data.europa.eu/eli/dir/2002/87/oj (accessed 26.02.2021).
  8. Anjos F., Custodio C., Fernandes N., Margo J. Conglomerates with Financial Divisions: an Internal Capital Markets Perspective, March 21, 2018. 44 p. Available at: https://www.hhs.se/contentassets/8e944c1104dc44b9b7cd00ef92dac62e/180427-claudia-custodio-fincongs_mar21_2018.pdf (accessed 13.02.2021).
  9. Bank of Russia. Report on the development of the banking sector and banking supervision in 2017. Moscow, Bank of Russia, 2018. 129 p. (In Russ.) Available at: https://cbr.ru/Collection/Collection/File/24204/bsr_2017.pdf (accessed 13.02.2021).
  10. Bank of Russia. Financial Stability Review, no. 1(16), IV Quarter 2019 – I Quarter 2020. Moscow, Bank of Russia, 2020. 59 p. (In Russ.) Available at: http://all-pf.com/upload/iblock/d1d/OFS_20_01.pdf (accessed 13.02.2021).
  11. Annual Report of the Bank of Russia for 2019. Moscow, Bank of Russia, 2020. 408 p. (In Russ.) Available at: https://cbr.ru/Collection/Collection/File/27873/ar_2019.pdf (accessed 13.02.2021).
  12. Bulletin of the Bank of Russia, no. 80(2216), 14.10.2020. 74 p. (In Russ.) Available at: https://www.cbr.ru/Queries/XsltBlock/File/97324?fileId=-1&scope=2216 (accessed 13.02.2021).
  13. Petralia K., Philippon T., Rice T., Veron N. Geneva 22: Banking Disrupted? Financial Intermediation in an Era of Transformational Technology. London, Centre for Economic Policy Research, September 24, 2019. Available at: https://cepr.org/active/publications/books_reports/viewreport.php?cvno=P321 (accessed 13.02.2021).
  14. Frost J., Gambacorta L., Huang Y., Shin H.S., Zbinden P. BigTech and the Changing Structure of Financial Intermediation. BIS Working Papers, no. 779, April 8, 2019. Available at: https://www.bis.org/publ/work779.pdf (accessed 13.02.2021).
  15. Boot A., Hoffmann P., Laeven L., Ratnovski L. Financial Intermediation and Technology: what’s Old, what’s New? European Central Bank, Working Paper Series, no. 2438, July 2020. 34 p. Available at: https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2438~d0d447b9b6.en.pdf?3667a205127eb6417924d14e1a2bb9c5 (accessed 13.02.2021).
  16. Waters R., Lee D., Murphy H., McGee P. Big Tech Shows its Resilience to Pandemic and Politics. The Financial Times, 30.10.2020. Available at: https://www.ft.com/content/ac8c0714-151b-4c2f-8eb4-2e5c480f9dec (accessed 13.02.2021).
  17. Tofanjuk E., Uskov N. German Gref: “Sberbank’s transformation is an eternal process”. Forbes, 22.11.2019. (In Russ.) Available at: https://www.forbes.ru/biznes/387895-german-gref-transformaciya-sberbanka-eto-vechnyy-process (accessed 13.02.2021).
  18. Timirchinskaya O. How Sberbank builds an ecosystem for all occasions. Gazeta.ru, 11.06.2019. (In Russ.) Available at: https://www.gazeta.ru/business/2019/06/11/12408139.shtml (accessed 13.02.2021).
  19. Cornelli G., Frost J., Gambacorta L., Rau R., Wardrop R., Ziegler T. Fintech and Big Tech Credit: a New Database. BIS Working Papers, no. 887, September 2020. Available at: https://www.jbs.cam.ac.uk/wp-content/uploads/2020/09/2020-ccaf-fintech-bigtech-credit.pdf (accessed 13.02.2021).
  20. The Financial World’s Nervous System Is Being Rewired. The Economist, 09.05.2020. Available at: https://www.economist.com/special-report/2020/05/07/the-financial-worlds-nervous-system-is-being-rewired (accessed 13.02.2021).
  21. What Ant Group’s IPO Says about the Future of Finance. The Economist, 10.10.2020. Available at: https://www.economist.com/briefing/2020/10/10/what-ant-groups-ipo-says-about-the-future-of-finance (accessed 13.02.2021).
  22. Kynge J., Sender H., Sun Yu. The Party is Pushing Back: why Beijing Reined in Jack Ma and Ant. The Financial Times, 05.11.2020. Available at: https://www.ft.com/content/3d2f174d-aa73-44fc-8c90-45c2a554e97b (accessed 13.02.2021).
  23. Foroohar R. Big Tech Collaborates to Conquer. The Financial Times, 25.10.2020. Available at: https://www.ft.com/content/eacb3e89-59fa-4251-bc5c-8137774022c2 (accessed 13.02.2021).
  24. Shadow Banking. Putting the Capital into Capitalism. The Economist, 25.06.2020, pp. 55-57. Available at: https://www.economist.com/finance-and-economics/2020/07/25/banks-lose-out-to-capital-markets-when-it-comes-to-credit-provision (accessed 13.02.2021).
  25. Review of the Differentiated Nature and Scope of Financial Regulation. Key Issues and Recommendations. Basel, Bank for International Settlements, January 2010. 132 p. Available at: https://www.bis.org/publ/joint24.pdf (accessed 13.02.2021).
  26. Szczepanski M. Digital Taxation. State of Play and Way forward. EPRS/European Parliamentary Research Service, March 2020. Available at: https://www.europarl.europa.eu/RegData/etudes/BRIE/2020/649340/EPRS_BRI(2020)649340_EN.pdf (accessed 13.02.2021).
  27. Swanson A. Biden on “Short Leash” as Administration Rethinks China Relations. The New York Times, 17.02.2021. Available at: https://www.nytimes.com/2021/02/17/business/economy/biden-china.html (accessed 25.02.2021).

Registered in System SCIENCE INDEX

For citation:
Dubinin S. The Modern Financial Conglomerates Competition . World Eonomy and International Relations, 2021, vol. 65, no. 8, pp. 14-21. https://doi.org/10.20542/0131-2227-2021-65-8-14-21



Comments (0)

No comments

Add comment







Indexed

 

 

 

 

Dear authors! Please note that in the VAK List of peer-reviewed scientific journals, in which the main scientific results of dissertations for the degree of candidate and doctor of sciences should be published for the “MEMO Journal” the following specialties are recorded:
economic sciences:
5.2.5. World Economy.
5.2.1. Economic Theory
5.2.3. Regional and Branch Economics
political sciences:
5.5.4. International Relations
5.5.1. History and Theory of Politics
5.5.2. Political Institutions, Processes, Technologies

 

Current Issue
2024, vol. 68, No. 5
Topical Themes of the Issue:
  • Are There Any Ways to Break Through the Korean Nuclear Impasse?
  • Contemporary U.S. Taiwan Policy: Balancing on the Edge
  • The Gulf Monarchies’ Vision of the Global Order Transformations and the Russian Place in It
  • At Post-Soviet Space
Submit an Article
INVITATION FOR PUBLICATION
The Editorial Board invites authors to write analytical articles on the following topics:
  • changes in the processes of globalization in modern conditions
  • formation of the new world order
  • shifts in civilization at the stage of transition to a digital society

The editors are also interested in publishing synthesis articles / scientific reviews revealing the main trends in the development of certain regions of the world - Latin America, Africa, South Asia, etc.