Financial Markets and Institutions. Lithuania's financial system: modern status and development opportunities (year 2006)

Financial Markets and Institutions
Lithuania's financial system: modern status and development opportunities (year 2006)

The financial system - a system of financial markets and institutions, financial instruments, rules and methods. It has sold bonds, shares and other securities, fixed interest rates and the creation and realization of financial services. The financial system is one of the most important discoveries of modern society. The main task of the financial system - to transfer funds from the financial deficit of those who collect them, those who borrow them. With the launch of funds for lending and borrowing (lending), the financial system creating the means by which the modern developing economies, improving the standard of living of the population. Lithuania's main goal of economic policy - membership in the Economic and Monetary Union. The whole reform program focuses on the development of objective measures in the medium term. These are:- Rapid and sustained economic development rates, a stable macroeconomic environment;- Favorable conditions for business development and successful implementation of structural reforms;- A transparent public administration and a political consensus on the reforms;-Stable and predictable legal environment;-A deep economic integration with the EU.
  The financial system will determine the cost of the credit they need. Financial system has a significant impact on national economic conditions. When credit becomes more expensive and less accessible - the general cost of goods and services decreases, leading to rising unemployment, falling production and economic growth. In contrast, when the cost of the credit decreases, it becomes more easily available - cost to the economy is growing, creating more jobs, economic growth is accelerating.The financial system is an integral part of the economic system. It can not exist by itself. Each economic system creates a flow of products and services, to the most appropriate payment flows (products and services combines the yield of land and other material resources, labor, management expertise and capital in the firm). There is a strong correlation between financial and other markets. Payment flows and the creation of the financial system is the main feature.Market - the exchange mechanism, bringing together products, resources, manufacturing, securities dealers and customers, enabling them to realize their objectives, while ensuring the country's economic development and the feasibility and effectiveness of (1).Financial markets are at the heart of the financial system, establishing the necessary credit volumes. Its functioning of the mechanisms necessary to the functioning of the economic system, provides an opportunity to attract deposits for storage, allows you to set interest rates and stock prices. The market economy is a vital need.
Lithuania's economy is functioning economic system of free market conditions. The economic system of the Republic of Lithuania enshrined in the Constitution. It also expressed that the citizens of Lithuania is based on the inherent right to property.
Lithuania's financial system and the combined market involving both state and private capital.The most important present-day Lithuania's financial system development trends in the developed world trends. Lithuania leads the market in terms of its economy and environment in the European Union ssusiduria competition, rapid introduction of new technologies for financial services, manufacturing and marketing implementation. Lithuania has already surprised "bank machines allow not only to withdraw cash, but also providing services to pay for services. Money put into a bank account in Lithuania allows the use of banking cards, even behind the Atlantic Ocean - the United States, not to mention the operations carried out in Europe (and not just her) states.The Internet Payment, tax returns and the tax relief declaring the transfer to the account. Lithuania was able to enter the western market and innovation to establish themselves there. Cutting-edge ideas and their implementation is achieved through small slots instantly.Negative aspects of a growing risk of financial service providers, rapid growth of debt compared to the borrowers. Large groups of financial pressure on their interests, making favorable laws. There is considerable corruption, distorted due to budget formulation and its implementation. As the global financial market and the State of Lithuania is also responsible for the safety of its operations.

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 Conclusions:Inefficient use of funds (incomplete products - design work, unfineshed construction objects, etc. other undone businesses) pressures on goods and services market. At the result "critical mass" of financial market pressures on the influence of resource market. Work, capital stock in the market becomes little effective counter-productive. This affects the production of services. The mechanism by comparing it with the engine draws in air, begins to increase in financial liabilities, revenues are moving into consumption and inflation starts to spin the wheel.Have lost confidence in the existing state government perspective, as far as feudal relations between public institutions and private - (currently the sector is experiencing labor shortages, which caused a large emigration to other countries pro-active, productive citizens of the state of the population) that responds to less investment in primary and secondary financial markets. Deferred investment funds, while its energy consumption per household. Enterprise funds needed for equipment products, the authorized capital funds are more expensive because the decreasing resources of borrowing because of financial market begins to limp lost their sources of short-term loans, is starting to build long-term lending costs.Construction:items may lead to corrupt any covered work - land, land management (how much spilled chips) of thermo., hydro. and acoustic insulation products in the country of origin differences, etc. Aggregate estimates for the customer reserve, engineering studies, design work (they may overlap both at the design stage of the customer and the competition is available materials as a 2-fold).Ineffective at the end of the (master) budget, which such that there is unspent money allocated from the state budget administration. "The Soviet planning mode" without any innovation, teamwork and organization of work methods, the year-end results in a "financial snowball" by absorbing two - three weeks in mint money hidden advance payments. If the "thrown money" allocated to the goods and products to buy, I think, maybe even less trouble, but if thrown means to pay for services not performed in advance of more trouble. Thus, consumption allocated to services caused by chance, fall in labor productivity in the future and the contractor will not receive the additional services enhancement. This creates a chain of inflation, ie unearned income, subject to them easily, adapting, and being put to use (perhaps in other ways, investicijom) increases the critical mass of money. In an exceptional part of the society - the boundless enjoyment of the pleasures of life, another part of the population - an unbearable existence. Poverty, lack of personal devaluation (alcohol, oħra), family crisis. All this gives rise "cloning." unaducated, uinteligent citisens.Construction must be observed volleyball schedule or timetable of resources - human, technical layout, funding schedules. With constant quality control.
  Real estate assets:it seems to me faulty work caused problems in the future by borrowing mortgage. The real estate value while also reducing liquidity, as market participants in evaluating property acquisition will be informed at the time of construction problems and their quality. And yet, such as badly fitted. road works "orchestrates" the future additional costs of the state and its taxpayers "throw away" resources to repair what has been done badly. This, too, in my opinion, affect the financial markets.
References:Works of the Professor. Hab.dr.A.V.Rutkauskas