The approach of a unilateral impact of the financial sector on economic growth was invalidated by the last financial crisis which very quickly changed into a global economic crisis. The aim of the study is the analysis of the impact of the financial sector on economic growth in the context of the growing phenomenon of financialization, which was one of the significant reasons of the financial crisis. The study was focused on presenting the growing scale of this phenomenon and analysing the impact of money supply in USD and EUR on world GDP and the GDP of the USA and the Eurozone. The following hypothesis was postulated: the growing process of financialization causes the growth of the USD and EUR supply, influencing changes in the world GDP, the GDP of the USA and the Eurozone. The study confirmed the hypothesis of the relation of the money supply with changes in economic growth. However, influencing economic growth with the money supply causes the purchasing power of business entities to decrease and causes growing debt. Furthermore, it does not contribute to the strength of the real economy. A repair of the current “system“ should not be sought for in constantly increasing macroprudential regulations, but in a return to a country’s interventionism, leading to a change in the priorities of the actions of financial institutions; mainly banks, and the supply of money based on fixed parities (gold, energy).
The article addresses the issue of conditions that the borrower is obliged to fulfill during the crediting process. These terms, the so-called covenants are built into credit agreements and are aimed at limiting banks’ risk when financing business entities. However, at the same time, covenants constitute conditions limiting the scope of use of bank loans. Covenants are very diverse. The principle hypothesis of the study assumes that the covenants differ according to the type of credit and the characteristic of the industry and the financial situation of the enterprise. In order to examine the hypothesis, an analysis of 25 credit agreements in three corporations and their subsidiaries was undertaken. These entities belong to fuel, mining and metallurgical sectors. At the same time, we observe the extent to which these covenants were kept during four quarters of 2016 and two quarters of 2017. Due to the confidentiality of the data contained in the loan agreements, the names of groups and their companies were kept confidential at the request of their management. Studies have also shown that abiding by non-financial covenants has been more difficult than abiding by financial covenants. In covenants, several contracts stipulated that a company cannot freely dispose fixed assets, restructure them or use leased assets which hinders the use of those asset to repay debt. One major obstacle was the fact that the company could not undertake any additional business beyond the existing one. This hindered the diversification of companies’ activities, which would improve their competitive position on the market. The author intends to conduct further research on covenants to highlight their flexible use and to increase the availability of bank loans to business entities.
The correlations and the influence of the monetary policy pursued by the central banks of developed countries, primarily by the Federal Reserve System (the central bank of the United States), on the economies of developing countries is a subject of research, especially since the outbreak of the last financial crisis. Decisions concerning shifts in attitudes in the monetary policy taken by the monetary authorities of the largest economies, influence investors’ behaviour. Due to globalization and financialization, short-term capital flows occur very quickly and on a significant scale. Argentina is an illustration of the consequences of monetary policy tapering by the FRS for the economy of a developing country. Argentina was supported during the period of disturbances by the International Monetary Fund. Nevertheless, it seems that this solution is insufficient in view of the globalization of the effects of the monetary policy pursued by the economically strongest countries.
The advancing degradation of the ecosystem and the occurring climate changes demand decisive action to be taken by citizens, aimed at levelling the results of the lack of balance between the natural environment and business operations. The growing importance of ecology is reflected on the international financial market in the form of green bonds. This article is devoted to green bonds which are a specific group of securities, namely ecological debt instruments. Despite the green debt being one of the most recent segments of the capital market, its very dynamic expansion can be observed year by year. The article is aimed at identifying the conditions for the development of the global environmental bonds market, specifically the factors stimulating and inhibiting the process. The article is a review in character and the following research methods were used in order to achieve the desired objective: analysis of subject literature and data analysis from the green bonds market, a case study, a descriptive and an inductive method.
Semi-structured individual in-depth interviews were conducted to explore and compare which social norms with regard to the debt-incurring process are important to Poles with various experiences of indebtedness. Thematic analysis within a constructionist framework identified the social norms important in the borrowing process for Poles and revealed, as expected, a number of differences between people with various indebtedness experiences. Model borrowers have a significantly different approach to debt than unreliable debtors and non-borrowers. Model borrowers seem to be oblivious to the negative sides of loans as well as indicate fewer reasons for justifying not repaying obligations than others. For unreliable debtors, loans are a quick way to solve financial problems. They borrow money out of necessity rather than to finance any larger, long-term investments and have their own private rules for borrowing. Non-borrowers, although aware of borrowers’ higher standard of living, emphasize that debt is associated with permanent stress and psychological burden. Model borrowers, unlike the others, declare that in their immediate vicinity are only those who use and pay their loans in a timely manner.
Regeneration – an integrated process of activities undertaken in the spatial, social and economic dimensions – should lead to the improvement of the living conditions of inhabitants of degraded urban areas. The European Union in 2007- 2013 allocated financial resources for this purpose in the form of JESSICA initiative which is based on financial engineering mechanism. Experiences gained so far allow conclusions to be drawn that JESSICA is a highly fi nancially-effi cient instrument but, however, not always delivers the desired outcomes in the spatial and social sphere. The scope of projects often is limited to infrastructural investments and does not reflect the complexity of regeneration process. In the article the authors analyse experiences of the five Polish regions with the use of JESSICA, point out main problems and formulate recommendations for sustainable urban policy.
JESSICA initiative as a financial engineering instrument was introduced to enhance and accelerate investments in disadvantaged urban areas. The novel aspect of JESSICA is that this instrument should not only support and promote sustainable urban development but also provide incentives that lower risk capital investments and consequently allow to overcome existing market failures. Thus, the paper aims to identify whether JESSICA projects have contributed to generating positive market effects, as well as to indicate the factors that were most responsible for the occurrence of these phenomena. The results show that 75% out of all projects generated positive market effects in form of new jobs, services or products. The generation of revenues by particular project was the most influential factor determining the capacity of a given project to create positive markets effects.