financial innovation

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Financial innovation

Design of any new financial product, such as exotic currency options and swaps.

Financial Innovation

The creation of a new investment vehicle. For example, one may structure a derivative in a way that has never been done before. Financial innovation can increase efficiency and profits for certain parties. However, it often takes time for regulation to catch up to financial innovation, which can make it risky.

financial innovation

the development by FINANCIAL INSTITUTIONS of new financial products and processes for the transmission of money and the lending and borrowing of funds, for example, telephone banking services, direct debit systems, credit cards, etc. These developments have augmented the traditional means of transmitting money (cash, cheques) and may have served to increase the velocity of circulation of money. They have also increased the availability of CREDIT and, by creating new ‘NEAR MONEY’ assets, have served to extend the liquidity base of the economy. This has tended to make the application of MONETARY POLICY by the authorities more complex.
References in periodicals archive ?
The main purpose of cooperation is to create an environment conducive to financial innovations and promote the development of innovative business.
Former Barclays Plc (LSE: BARC) CEO, Antony Jenkins, has claimed that major players in the banking industry could fall behind when it comes to the adoption of new financial innovations such as blockchain technology.
We used two proxies of competitions, two proxies of financial innovations and regressed them on a growth indicator as well as development indicator with other control variables.
While our central focus is on how the performance aspiration effects on financial innovations vary across national contexts, we hope that future research can propose an extended model of organizational innovation by adding other strategic alternatives.
We can argue that not financial innovations "per se", but not understending them was might be a cause.
The examples of recent financial innovations will continue to evolve and develop, drawing on future improvements in information technology.
Written by three experts in economics and real estate financing, Fixing the Housing Market: Financial Innovations for the Future is a scholarly and serious-minded study of the history and future of financial innovation products that make owning a home possible.
Financial innovations should be encouraged to provide a wider assortment of products to the borrowers.
Dr Alok Saklani, Director, Apeejay School of Management welcomed the guests and spoke about the necessity of financial innovations for development of society.
In addition, there is neither a unified definition of financial innovations nor uniform classification of their types applied in these studies.
derivatives markets, model risk, risk management, swaps and other financial innovations.
Moreover, while much effort has been devoted to understanding the characteristics of users and adopters of financial innovations and the attendant welfare implications, we still know little about how and why financial innovations are initially developed.

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