International capital market

Monetary capital means that canact as a factor of production and a means to profit. Domestic entrepreneurs often find themselves in a situation of a sense of lack of capital.

This fact can serve as an obstacle to theireffective activity and further development. At the same time, other participants in some economic relations have temporarily free monetary resources in the form of savings. Owners of such funds have the opportunity for a certain time to transfer them to the use of another economic relationship. The second side can profit from them, using as an investment. However, it does not have liquidity for a certain period of money resources for the expected growth in the near future. This is how the capital market emerged, the instrument of which is the money resources issued to business entities for a certain period of time for a fee and subject to return. In this case, the organization that provides its funds as a loan, receives some revenue in the form of interest for their use by the borrower.

The world capital market has two types of structure: operational and institutional.

The second structure is the mostand includes official institutions (CBR, international financial and credit organizations), private financial institutions (commercial banks, pension funds and insurance companies), as well as other firms and exchanges. The leading role in this group of organizations is assigned to transnational banks and corporations.

The international capital market, depending on theThe timing of its movement consists of three sectors: the eurocredit market, the world money market and the financial market. So, the world market of monetary resources is based on the provision of eurocredits for a short time (up to one year). The capital market for a longer time has undergone certain changes in the part of the increase in the volume of operations on it since the 70s of the twentieth century. This is due to technical progress.

This capital market is often called the sphere of consortial or syndicated loans, since such financial relations are represented by banking consortia or syndicates.

The global capital market is based on the provision ofbonded loans, and the beginning of its formation falls on the 60-ies of the twentieth century. It was with his appearance that the traditional market of foreign loans and the euro-loan market began to function in parallel. Already in the early 90-ies, it was exactly on the euro loans that accounted for about 80% of all international borrowed resources. This market of money-capital has the main feature - both foreign currency is used for borrowing by both creditors and borrowers. Another difference in this area of ​​financial relations is the issue by non-residents of traditional foreign loans within one country, and the placement of euro-loans is carried out in the markets of several states at once.