METHODOLOGY FOR A COMPREHENSIVE ASSESSMENT OF A MARKET OPENNESS OF THE BANKING AND INSURANCE SERVICES IN UKRAINE
Keywords:
market openness, market of financial services, banks and insurers with foreign capital, criterion of openness, integral index of the market opennessAbstract
The purpose of the article is to study the degree of openness of financial services markets in Ukraine on the example of the banking and insurance sectors: banks and insurers with foreign capital.
The main quantitative indicator for analyzing the influence of foreign players on a market
is the coefficient of openness j being as a share of foreign capital. A methodology for a
comprehensive assessment of market openness of the banking and insurance services in
Ukraine is proposed.
The authors elaborated a classification of market types according to the criterion of
degree of openness. It has been found out that isolated markets have a degree of openness
within 1%. In a closed market, the weight of goods and services of foreign players is less
than 10% and does not almost affect the overall market condition. It is shown that for the
case of Ukraine at the present stage of development, the degree of openness of the markets
in the interval from 10% to 35% may be considered as the optimal one. Open markets are
divided into four categories: from the optimal for Ukraine in the interval 10%< <35% to
affiliated for values >75%. The important threshold is the value =50%, when freedom
of choice of domestic and foreign service providers appears: the influence of foreign players
becomes equal to the influence of national service providers. In the case >50% a risk of
loss of national preferences and monopolization of the market by foreign players appear.
The classification is guided by the known economical quotas and models of
phenomena in natural sciences. Open markets can be described by the corresponding
equations using models of classical, semi classical physics and quantum mechanical
models of over barrier transitions. The higher the value of the openness index is, the more
approaches of classical physics for describing are suitable.
It is shown that markets of banking and insurance sectors of Ukraine are open: banking
market is open and dependent, insurance market is open and optimal with conserving the
national preferences and export oriented at the same time.
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