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19I INTERNATIONAL JOURNAL OF THEORETICAL AND PRACTICAL
RESEARCH
International journal of theoretical and practical research Scientific Journal
Year: 2022 Issue: 11 Volume: 2 Published: 30.11.2022
http://alferganus.uz
Citation:
Shakirova, Y.S. (2022). Modern banking system: defi models in the capital market. SJ International journal of theoretical and practical research, 2 (11), 208-214.
Shakirova, Y.S. (2022). Modern banking system: defi models in the capital market. Nazariy va amaliy tadqiqotlar xalqaro jurnali, 2 (11), 208-214.
Doi:https://dx.doi.org/10.5281/zenodo.7391458
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ISJIF 2022:5.962 QR-Article
Shakirova, Yulduz Saydalievna
Acting Associate Professor Department of "Management" Ferghana Polytechnic Institute
UDC 336(G6)+339.7(G6)
MODERN BANKING SYSTEM: DEFI MODELS IN THE CAPITAL MARKET
Abstract. Modern economic trends and frequent crisis phenomena have revealed imperfections in financial market regulation models, led to a reassessment of the effectiveness of national monetary authorities and, ultimately, led to a revision of approaches to crisis management and prevention of "collapses" of systemically important financial institutions. The article discusses some issues of modern banking technologies. It is proved that in order to accelerate the development of the country's system, credit institutions will increasingly use systems such as LoanWolffor fast, inexpensive creation of DeFi based on audited reliable smart contracts.
Keywords: banks, blockchain, DeFi, foreign currency, crypto exchange, cryptocurrency, payments, payment system, smart contract, financial market, digital currency.
Шакирова, Юлдуз Сайдалиевна
И.о. доцента Кафедра «Менеджмент» Ферганский политехнический институт
СОВРЕМЕННАЯ БАНКОВСКАЯ СИСТЕМА: БЕР1-МОДЕЛИ НА РЫНКЕ
КАПИТАЛА
Аннотация. Современные экономические тенденции и участившиеся кризисные явления выявили несовершенства моделей регулирования финансовых рынков, повлекли переоценку эффективности национальных денежных властей и, в
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конечном итоге, привели к пересмотру подходов относительно антикризисного управления и предотвращения «коллапсов» системно-значимых финансовых институтов. В статье рассмотрены некоторые вопросы современных банковских технологий. Доказано, что для ускорения развития системы страны, кредитные учреждения все активней будут использовать такие системы, как LoanWolf для быстрого, недорогого создания DeFi, основанного на прошедших аудит надежных смарт-контракт ах.
Ключевые слова: банки, блокчейн, DeFi, иностранная валюта, крипто-биржа, криптовалюта, платежи, платежная система, смарт-контракт, финансовый рынок, цифровая валюта.
ZAMONAVIY BANK TIZIMI: KAPITAL BOZORIDAGI DEFI MODELLARI
Аннотация. Zamonaviy iqtisodiy tendentsiyalar va tez-tez inqiroz hodisalari moliya bozorini tartibga solish modellaridagi kamchiliklarni aniqladi, milliy pul-kredit tizimining samaradorligini qayta baholashga olib keldi va pirovardida inqirozni boshqarish yondashuvlarini qayta ko'rib chiqishga va tizimli muhim moliyaviy institutlarning "qulashi" ning oldini olishga olib keldi. Maqolada zamonaviy bank texnologiyalarining ayrim masalalari muhokama qilingan. Mamlakat tizimining rivojlanishini tezlashtirish uchun kredit tashkilotlari LoanWolf kabi tizimlardan tez, arzon narxlardagi DeFi yaratish uchun tobora ko'proq foydalanishi isbotlangan. Kalit so'zlar: banklar, blokcheyn, DeFi, xorijiy valyuta, kripto almashinuv, kriptovalyuta, to'lovlar, to'lov tizimi, SMART shartnoma, moliya bozori, raqamli valyuta.
Introduction
The processes of financial globalization and capital movement liberalization are actively underway in the world economy. The strengthening of interethnic ties is taking place against the background of the outpacing growth of financial markets of countries with rapidly developing economies and the concentration of the bulk of monetary resources in conglomerates, the rapid expansion of which is often accompanied by an increase in instability and risk-taking of financial markets. After the global financial and economic crisis of 2008-2010, the activity of financial intermediaries has not decreased, as evidenced by the positive dynamics in the global financial market. According to the data of the Bank for International Settlements, the total amount of liabilities on financial instruments exceeds the global GDP indicator by tens of times. Meanwhile, the long-term recession of the world economy was directly related to exponential trends in the development of financial markets and the increasing complexity of their regulation [1-5]. The specificity of modern crisis phenomena contributes to the change of ideas about the cyclical nature of the economy and the nature of financial risks [20-23]. Taking into
Shakirova, Yulduz Saydaliyevna
Dotsent v.b. "Menejment" Kafedrasi Farg'ona politexnika instituti
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account the scale of the impact of financial intermediaries' operations on macroeconomic imbalances, the attention of scientists is focused on solving problems related to the development of technologies for preventing systemic risks of the financial market.
Literature analysis
The degree of elaboration of the problem Theoretical studies of the functioning and regulation of financial markets are contained in the works of foreign scientists: F. Abergel, G. Akerlof, T. Baker, A.N. Berger, Y. Brigham, P. Volcker, S. Gadings, E. Gapenski, R. De George, R. Easterly, S. Kleis, P. Krugman, D. Machiandro, F.S. Mishkin, A.M. Melecki, N. Roubini, J.Y. Stiglitz, P. Hilbers, M. Chikhak, etc.
The theoretical substantiation of monetary regulation is devoted to the works of supporters of the monetarist theory of M. Friedman - K. Brunner, R. Lucas, F. Kidland, D. Prescott, J. Tobin. At the same time, the analysis of the economic literature showed insufficient elaboration of the issues of formation of an effective model of regulation of financial markets, including the applicability of world experience in the economic conditions of the Republic of Uzbekistan. Currently, the scientific and expert community is actively reassessing the role of financial markets in the development of crisis phenomena, slowing down the growth of the global economy. In the context of rapidly transforming business models and regulatory methods that are not always amenable to standardization, there is a need for a deeper study of the global practice of financial market regulation. The urgency of the problem of improving the regulation of financial markets determined the choice of the topic and direction of the study.
Research methodology.
The methodological basis of the study was a systematic approach to data analysis and synthesis, methods of induction and deduction, expert evaluation, scientific abstraction, grouping and classification of data, various types of analysis (statistical, econometric, etc.), including the DEA-evaluation method (M. Farrell model). The theoretical basis of the work was the fundamental research of domestic and foreign scientists devoted to the study of the development of financial markets and the practice of their regulation; theoretical and practical development of methods for effective regulation of financial markets of international organizations.
Discussions and results
Banking has been developing for many centuries, with the formation of human civilization itself. According to one theory, it was financial transactions, the need to record information about debts that served as the beginning of writing. The means of writing on the walls of caves, and then papyri, paper, abacus and other means of civilization, it was often bankers (and financiers in the broad sense, including accountants, loan sharks, auditors, etc.) who were the first to use financial information for accounting, thereby popularizing these technologies for other spheres as well [6-12]. Blockchain technology similarly began to be used at first specifically for accounting records of financial transactions, and then began to be popularized in other areas (NFT, accounting for certificates, rights, COVID passports, etc.).
Previously, in order to be a successful banker, an entrepreneur needed, in addition to financial skills, the ability to write and count. Further in the XX century, knowledge of English as an international language of communication, as well as the availability of an
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Internet site and connection to the SWIFT system began to be required. In 2021, most banks operating on global markets already understand the need to use the Solidity computer English financial programming language and the DeFi technology built on it (as well as the Rust language of financial smart contracts, which is gaining popularity). By analogy with what happened in the XX century, bankers could, using English, connect to SWIFT and use all the advantages of the global financial interbank world of thousands of banks, in the XXI century, in the language of Solidity /Rust, they connect to DeFi and use the advantages of a decentralized financial world that already covers tens of millions of direct users and potentially every inhabitant of the earth.
Before the advent of the Internet and computers, the global financial world was mainly limited to interbank transfers, and the banks themselves distributed financial flows to their countries and regions [13-18]. At the turn of the XX and XXI centuries, universal international payment systems such as Paypal began to appear, working directly with corporations and consumers anywhere in the world, and they, as well as Internet banks appearing massively in the second/third decades of this century, taught people to use electronic payments without the need to interact with a physical bank office [19-20].
Recently, blockchain and cryptocurrencies have become too well-known to ignore, which has also led to conflicting opinions about their current use and future application. Supporters of cryptocurrencies believe that cryptocurrencies should function freely across borders that should not be regulated by any financial supervisory authorities. On the contrary, critics of other participants have a slightly different opinion. They consider regulation inevitable and necessary. Given this, they want the interests and arguments of the bitcoin community to be represented and heard in the government. The value of cryptocurrencies depends on the trust of users, because if they receive it as payment, they will be able to use it somewhere else to buy what they need or need. Knowing the fact that bitcoin is not the only cryptocurrency available on the market, among other reasons that distinguish bitcoin from the rest are its network effect, proven security and accessibility [19-22]
The blockchain technology that has gained popularity and DeFi based on it have become the next stage of changing the financial paradigm [12-18]. If earlier, in order to create your own bank, it was necessary not only to go through a lot of legal bureaucratic burdensome procedures that protect not only users from fraudsters, but also the banking system itself from new competitors, then with the advent of DeFi it became possible to compete with truly economic models for the consumer. The basis of any business is users, and in the banking sector, both the volume and liquidity of capital are extremely important. Despite the fact that the cryptocurrency world is still small, and occupies only a market share of about $ 2 trillion, even its small share is enough to launch its own financial business. Previously, in order to obtain liquid capital, banks had to turn to large investors and the Central Bank, build up their reputation for years, open many offices, hire hundreds of people of various personnel to attract a billion of liquidity. Thanks to DeFi and the correct construction of economic models, it is possible to launch a website with smart contracts and in a matter of weeks, a team of several people, attract billions of dollars of capital to provide borrowers from DeFi and the real consumer sector. It is thanks to the emergence of the possibility of any of the 8 billion inhabitants of the earth
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to become a member of DeFi, contributing their funds to the capitalization of such systems, banks have new opportunities to attract capital and compete for them.
Despite the fact that DeFi has changed the global capital market, making it possible to invest with minimal funds in a couple of clicks on the smartphone screen, to have access to your deposit and withdraw it 24/7, anonymous investing and obtaining loans, earning on providing liquidity (farming) and receiving payment for supporting the financial infrastructure of projects (staking), in DeFi there are still unresolved problems for the onset of its mass adoption by every inhabitant of the planet. One of the barriers is the need for technical skills, difficult especially for the generation born before the 80s, as well as trust in global financial organizations based on smart contracts. In 2020, many far-sighted banks, having made sure that in 12 years the cryptocurrency technology itself has proved its worth and huge prospects, began to invest in them, mainly to begin with in the TOP cryptocurrencies. This, among other things, brought billions of added liquidity to the market, and they began to fall into DeFi, the growth of which actively began to gain momentum from mid-2020 and by 2021. bankers became convinced of the global long-term prospects of DeFi and also began to invest directly in them.
The next stages in the development of the global financial market, when any resident of any country can contribute their factory-earned dollar to DeFi and receive income from using it by a borrower from the USA or Europe when creating high-tech products, should be the adoption and launch of their DeFi by existing classical banks. For banks, this will give access to global liquidity amounting to trillions of dollars, the opportunity to significantly reduce costs through the use of smart contracts, create international financial organizations from anywhere in the world, even with a small startup capital, using competent financial models of Tokenomics. For users, the presence of banks with real licenses in their countries (primary screening of scammers), helping their support services with technical settings (sometimes even in physical offices), sometimes with the presence of a national deposit insurance system (which will soon become global, uniting many DeFi), will create trust and give the opportunity to multiply the flow of liquidity into the global a decentralized financial world.
At the same time, classical bankers, as well as new users [10-20], often find it difficult to understand the new world of blockchain.
Conclusion
To accelerate the development of the industry, banks will increasingly use systems such as LoanWolf for fast, inexpensive creation of DeFi based on audited reliable smart contracts. Standardized DeFi systems will also create convenience for users in their allocation of capital across several systems, without having to study their technical differences for a long time, but only choosing a few of them to diversify investments. And the possibility of combining liquidity into single pools in such standardized systems will simplify access to multibillion-dollar liquidity for new banks just discovering DeFi and accelerate the launch of their systems.
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