The risk of development of Lithuanian derivatives markets

Journal of Business Economics and Management

Kristina Garškaitė-Milvydienė¹ 

[1] Faculty of Business Management, Vilnius Gediminas Technical University, Vilnius, Lithuania;

关键词: derivatives;    financial instrument;    risk;    foreign exchange transactions and interest rate contracts;    financial crisis;    causes and consequences of financial crisis;   

DOI  :  10.3846/jbem.2021.13894

来源: DOAJ

【 摘 要 】

Derivative financial instruments play a very important role in financial markets, but they are seen as rather contradictory and their impact on financial markets and the stability of these markets has not been comprehensively examined. Therefore, the aim of this article is to systematise the potential risks of derivatives in the context of the past global financial crisis, and the recent situation in Lithuania. In particular, growing international tension and deteriorating economic situation, make it necessary to re-analyse the recent crisis, its causes and consequences. The 2007–2008 global financial crisis revealed the challenges and risks of derivatives and showed the tremendous impact that their imprudent use may have on the stability of a financial system. The Lithuanian economy recently joined the euro, but its macroeconomic fundamentals show certain risks. Infrastructures of the derivatives market, liquidity and an adequate supervisory framework are necessary to maintain stability.

【 授权许可】

Unknown