financial innovation

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 ?
Utilizing a flat and decentralized model, VCSPARK is contributing the new practice to Chinese financial innovation.
Global Banking News-November 16, 2015--Nomura sets up financial innovation office in Tokyo
Abstract Examining behavioral explanations for financial innovation, this paper focuses on the performance aspiration effects on financial innovation in nations with different levels of economic freedom.
The Mayor of London, Boris Johnson, said: "London has always been at the forefront of financial innovation and now our financiers are leading another global revolution, this time driven by technological innovations that are changing the way the world does business, creating new jobs and economic growth both in the UK, and in the other financial centres of the world.
According to Ed Northam, Head of Investment Banking at GIB, this is the type of financial innovation is required to support the UK s green economy.
The announcement came in a package of measures unveiled by finance minister George Osborne aimed at boosting financial innovation in London to help fend off challengers to the city's status as the world's leading financial centre.
KARACHI -- The State Bank of Pakistan announced the results of Financial Innovation Challenge Fund (FICF) Round 2 on Promoting Innovative Rural & Agricultural Finance in Pakistan under the UK's Department for International Development (DFID) funded Financial Inclusion Program.
After taking a backseat to financial stability concerns since the financial crisis, financial innovation is poised for renewed prominence as long as there is not another systemic shock.
As a result, of financial innovation, new business models of banks emerged which changed the underlying economics of banking as new financial instruments enabled credit risk to be shifted away from the originators of loans.
Financial innovation and advances in behavioral psychology together with information technology make it possible to work on diverse goals of a good society, such as reduction of crime, facilitating small investor participation in entrepreneurial enterprises, and mobilizing resources for enterprises whose success is not defined by conventional bottom lines.
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.
In the next phase, FIP will launch Financial Innovation Challenge Fund worth GBP 10 million and a technology fund worth GBP2 million to promote financial innovation and support alternative delivery channels.

Full browser ?