Financial Innovations and Its Effects on Economic System | Chapter 23 | Theoretical Key Issues and Practical Development Trends of China’s Digital Economy

In recent years, as China's economy has transitioned from a high-speed growth phase to a high-quality development phase, financial innovation has been recognized as one of the key drivers for economic advancement. The 19th National Congress of the Communist Party of China (CPC) outlined crucial strategies for promoting high-quality economic development, with financial innovation being regarded as a pivotal means to achieve this objective. Against this backdrop, conducting in-depth research on the impact of financial innovation within the financial system on economic advancement is of significant importance.

 In China, financial innovation has emerged as a critical driving force for promoting economic development and enhancing economic quality. The Chinese government actively promotes financial reform and innovation, striving to build a more open, transparent, and robust financial system to enhance the capacity of financial services for the real economy. This effort aims to accelerate the transformation of the economic development model and achieve high-quality economic development. Nevertheless, the mechanisms through which financial innovation impacts the economy remain not fully understood, necessitating further investigation.

This study aims to systematically review and empirically analyze the impact of financial innovation on China's high-quality economic development. Through this research, the theoretical foundations and decision-making support were provided to guide financial innovation, expedite the construction of a financially strong nation, and promote high-quality development. This paper identifies the positive impact and important role of financial innovation on economic growth and puts forward relevant suggestions to decision-makers.

 

Author (s) Details

Jiacheng Lyu
Shexian No. 1 Middle School, Handan, 056400, China.

 

Yingbo Lyu
Shexian Communist Party School, Handan, 056400, China.

 

Wenbo Lyu
Saxo Fintech Business School, University of Sanya, Sanya, 572000, China.

 

Please see the book here:- https://doi.org/10.9734/bpi/mono/978-93-48388-89-6/CH23

An Overview on Silicon Valley Bank Failure in Europe: Causes and Effects | Chapter 4 | Contemporary Research in Business, Management and Economics Vol. 5

This chapter examines how Europe reacted to the collapse of Silicon Valley Bank (SVB). The SVB was specialized in banking for technological startups, and it provided financing for almost half of US venture-backed technology. On the 10th of March, SVB collapsed, the second-largest failure since the financial crisis of 2008. The banking failures can significantly impact the financial system and the financial markets, affecting depositors and investors’ confidence. In this chapter, the Silicon Valley Bank failure is analyzed as a case study. We describe the main causes that contributed to the collapse of SVB, examining the consequences in Europe in terms of effects on financial systems, markets, and startup ecosystem, as well as in terms of reactions from supervisory authorities. The results show that the lack of a risk culture and a limited specific knowledge of the dynamics of the sector generated disastrous consequences, leading to the collapse of SVB. This chapter contributes to the literature highlighting how political events can have significant impacts on the way financial institutions are regulated and supervised. The study represents a starting point for investigating the consequences of the SVB bankruptcy, increasing the reflections on effects of the failure in Europe with other factors that can affect financial systems and market to formulate any new hypotheses for further future studies.

Author(s) Details:

Domenica Federico,
Faculty of Economics, eCampus University, Novedrate (CO), Italy.

Francesco Napoli,
Faculty of Economics, eCampus University, Novedrate (CO), Italy.

Antonella Notte,
Faculty of Economics, eCampus University, Novedrate (CO), Italy.

Please see the link here: https://stm.bookpi.org/CRBME-V5/article/view/14183