Armenian expert: architecture of financial market regulation needs to be changed in world

YEREVAN, December 19. /ARKA/. Modernizing the architecture of financial market regulation and establishing effective institutions and mechanisms at supranational level became necessary in today’s world, vice-chancellor for university education development of the Russian-Armenian (Slavonic) university Edward Sandoyan said.

The problem is that national financial regulation or financial mediation institutions are inefficient and not in line with what is happening in the world, he said at “Novosti” International Press Center during Moscow-Yerevan-Kiev-Kishinev video-bridge on social responsibility of states under the crisis circumstances.

Such a stand is not popular today as financial means are being distributed through the International Monetary Fund or sovereign funds, Sandoyan said.

“But time is passing, and we will be treating the consequences, and if we manage to overcome the crisis, we will then forget about what it was caused by,” the expert said.

According to Sandoyan, the main problem is institutional imperfectness of the market economy model “that we have built in our states”. The countries should have already started forming their own self-sufficient institutions long ago, he said.

“If these institutions were at a higher efficiency level in Russia, there would not be such a huge amount of corporate external debt the return of which triggered the crisis in Russia,” Sandoyan said.

According to the expert, one should not be proud of what Armenia, Moldova and Ukraine are proud of today, i.e. of not having accomplished and effective capital market institutions of.

“This means that we have lost huge potential of our own development,” Sandoyan said. N.V. –0—