State regulation of the market is the main lever for the forced normalization of both the internal and external economic conditions of any country. At the moment, there are several recommended methods to stimulate the optimal work of the financial sector. Before studying them, you need to familiarize yourself with the structure and functions of the economic market.
Fundamentals of Financing
The monetary sector today is an independent element. It is he who forms the global financial market. The monetary sector is also part of the credit component of the economic balance with all its income and turnover.
The financial market is a combination of international and national relations that provide direction, distribution and accumulation of capital development between various entities of the system. The catalyst in this structure are banking institutions. Their goal is to achieve the optimal balance of demand for a good supply for both parties. At the same time, capital with each new transaction rises to a new level.
The financial market provides the company with services, supplying money to its entities at the right time. In other words, this is an exchange where currency capital acts as a commodity. In turn, money plays a transport role. They participate in the circulation on the stock exchange of securities, in credit and insurance trading. This is one big single economic entity, consisting of relations and a redistribution mechanism.
Market structure
The financial sector can be divided into five components: investment, stock, credit, foreign exchange and insurance. Regarding this, a market structure is being formed. It includes credit, foreign exchange, stock and insurance operations, as well as all kinds of investments.
Here the objects of sale are financial resources. They may differ in the type of transactions relative to market sectors. For example, money plays its own role in credit operations, and only rights to the possibility of earning income are sold at stock trading. That is why the financial market can be presented as an indicator of the state of the entire economy, which depends on the redistribution of resources.
The structure of the global exchange sector is usually divided into three groups: money, capital and loans. Transactions on each of these financial groups may be short-term or long-term. The longest of these will be credit loans that do not have clear boundaries. Here the revenue part depends on the definition of interest. The formation of such rates is regulated by the organization providing this service.
Market Functions and Tools
The system of monetary relations determines the state of the economy and its subjects. Depending on the course of affairs, it can be at the micro level or macro level. Financial condition is the primary indicator of market performance.
In the global economy, only the macro level is considered. It is determined by the following indicators: profit and expenses, budget deficit, debts, balance sheet, interest rates, inflation, exchange rates, mass of capital, volume of securities and savings.
To date, it is customary to distinguish five functions of the financial market:
- increase in the rate of centralization and concentration of capital;
- redistribution of budget funds;
- decrease in trading cycles;
- saving circulation;
- support the continuous process of reproduction.
The instruments of the exchange sector are documented monetary obligations of entities drawn up in accordance with current legislation. Currently, the practice of merging various intermediaries for similar operations is widespread in the global economy. The development of cooperation contributed to the emergence of such financial instruments as bills, stocks, checks, receipts, bonds, policies, mortgages, certificates, etc.
State regulation of the market
This economic procedure is one of the most important tasks of the country's domestic policy. Only competent and timely control over financial markets will ensure their successful prosperity.
State regulation of the economy market can be conditionally divided into two models. The first is called dominant. It implies the dominance of public authorities over the entire economic structure of the country, leaving only an insignificant part of the authority of enterprises and organizations. The second model is based on market self-regulation. Here, all the main functions for improving the economic situation are given to organizations. The country's authorities only control the course of affairs and have the right to intervene at the right time. 
Such methods of state regulation make it possible to streamline the activities of individual market segments. In addition, the operations of organizations for which they have sufficient authority are structured.
State regulation of the financial market should include the following items:
- implementation only in accordance with the law;
- lack of monopoly;
- compulsory licensing of activities;
- control of intermediary transactions;
- protection of the rights and interests of investors and creditors.
Main objectives and regulatory mechanism
In the event of a decline in the economy, the state should take responsibility for normalizing the financial sector in the country. The market regulation mechanism pursues the following objectives:
- Ensuring the efficient operation of the financial sector through its development and increasing competitiveness. 2. Reduce the likelihood of risks to a minimum to exclude the possibility of bankruptcy of the stock and credit markets.
- Control over the infrastructure of the financial sector (commercial funds and banks, insurance companies, etc.).
Market Regulation in the Russian Federation
The international banking crisis that happened several years ago made the leading countries of the world reflect on the processes of stabilization of the financial sector. Today, exchanges are very unstable, therefore, the authorities need proper control and a clear algorithm of actions.
State regulation of the Russian market can be carried out by several structures at once:
- FS on employment and labor. This federal service carries out the licensing of organizations, the development of financial instruments and market monitoring.
- FS on finance. This service records transactions and verifies their legal compliance. 3. FS insurance. It implements such methods of state regulation as monitoring the state of clients and issuing licenses to start-up companies.
- Central Bank Establishes rules for conducting financial transactions. Controls all types of foreign exchange and credit operations.
Guarantor of financial investments
State regulation of the market, in addition to stabilizing the economic situation, pursues another important goal - the protection of investments. According to the relevant law of the Government of the Russian Federation, investors do not have to worry about their accumulated funds.
At the time of market regulation, the investor has the right to request any information regarding his securities and the state of his capital. The central bank guarantees the safety of invested funds.
Investor complaints are dealt with by federal authorities.
