Publication: Russian Federation Capital Markets : Analysis and Diagnosis of the Financial Regulatory and Institutional Policies Required for Becoming an International Financial Center
Date
2012-06
ISSN
Published
2012-06
Author(s)
Abstract
There should be two principal goals in
developing Russia as a financial center: a) attracting more
of the financial business of large enterprises and of the
wealthy, which now largely goes abroad to other
international financial centers; and b) serving the needs of
small and medium enterprises and small investors in Russia,
needs that are now largely unmet. Advancing the second goal
would help to advance the first goal by broadening the
diversity in securities market funding as well as firm
issuance possibilities. Financial centers exhibit benefits
of scale. Better serving the need of Small and Medium
Enterprise (SMEs) and small investors would increase both
the supply of securities and the demand for securities in
Moscow. An increased volume and liquidity of transactions
will make Moscow a more competitive financial center,
thereby attracting more of the business of large enterprises
and the wealthy that currently goes elsewhere. Finally, the
above actions will constitute the necessary conditions to
have the key elements for developing a significant financial
center. They may not be all sufficient measures however.
Non-financial market factors such as a suitable
macroeconomic environment, efficient city transport
facilities, reasonable housing availability, education
facilities for foreigners, and a streamlined and transparent
business regulatory environment all constitute key ancillary
aspects supporting the growth and broader operating
environment of international financial centers.
Citation
“Pollner, John D.. 2012. Russian Federation Capital Markets : Analysis and Diagnosis of the Financial Regulatory and Institutional Policies Required for Becoming an International Financial Center. © World Bank, Washington, DC. http://hdl.handle.net/10986/16031 License: CC BY 3.0 IGO.”