Globalisation and financial markets size limits: Credit risk management aspects

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    Abstract

    The paper presents a macroeconomic view on financial assets market integration. In process of globalization the cost of international transactions provides certain advantage for large markets. Real financial trends are different from theoretical assumptions. Intermediaries are more aggressive to use risky instruments with advantages of wide risk diversification at lower cost. The price of financial assets became higher as the size of assets markets became larger. The globalization impact is more essential for financial markets of advanced countries, not to less developed economies The impact of financial globalization on growth of the size of financial markets promotes the cross-country disbalance and leads the financial crises.
    Original languageEnglish
    Pages (from-to)52-58
    JournalIntelektinė ekonomika
    Issue number2 (4)
    Publication statusPublished - 2008

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    Keywords

    • Financial integration
    • Global trends
    • Risk diversification
    • Assets
    • Credit crisis
    • Market concentration
    • Systematic risk

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