Finance and Credit

Modern interpretation of the financial system category

Vol. 24, Iss. 3, MARCH 2018

Received: 22 November 2017

Received in revised form: 15 January 2018

Accepted: 1 February 2018

Available online: 29 March 2018

Subject Heading: Financial system

JEL Classification: G00

Pages: 537—549

Poltoradneva N.L. Omsk State Transport University, Institute of Management and Economics, Omsk, Russian Federation

Zav'yalova D.A. Omsk State Transport University, Institute of Management and Economics, Omsk, Russian Federation

Subject The paper investigates the financial system category. The diversity of existing views makes it difficult to understand the essence of the phenomenon in question, because the definitions are often contradictory.
Objectives The aim is to obtain an unbiased and complete interpretation of the financial system term on the basis of analysis and generalization of the definition under review. It enables to organize the content of this term and simplify its use in theoretical and practical research, and to improve the quality of lawmaking and regulation.
Methods The study applies methods of comparative and logical analysis of various interpretations of the financial system category, which allow formulating evidence-based proposals, thus eliminating the gap between the theoretical model and the practical realities of the financial system’s functioning.
Results We review the Russian and foreign scientific literature. The principal difference between foreign interpretations is that the State simultaneously acts as a central link of the financial system and an active participant of the financial market.
Conclusions The financial system is a form of organization of economic agents’ cooperation through money and financial instruments. It is in the condition of evolutionary development.

Keywords: financial system, financial intermediaries, financial institutions


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