Financial Journal

p. 15-29

Authors: Mariya A. Mihailova, Andrey V. Obynochny, Kristina V. Shvandar

Rapid socioeconomic development has produced a widening gap between economic theory and reality. As a result, it has become increasingly difficult to objectively assess whether financial regulatory policies adopted by nations worldwide are aligned with the fundamental objectives of stimulating financial market growth and promoting competition, and whether these policies are based on a realistic market picture. Such policy assessments have become particularly challenging for the payments industry and in regards to the regulation governing emergent financial market players from other industries (e.g. Big Tech). Coupled with the radical shift in the role of regulators themselves, this phenomenon raises a variety of scientific questions. Over the past few years, participants in the financial industry, primarily in the payment segment around the world, have, in practice, faced changes in the approaches of central (national) banks to market regulation. In our opinion, the key change lies in the new role that regulation is acquiring: now it not only reacts to market changes by setting a regulatory framework for them, but also becomes the central source and determining instrument of market changes. In this article, we substantiate an approach to the study of the directions of changes in the functions of macroregulation as a single mechanism in relation to a single object, in contrast to the studies available in the scientific literature within the framework of individual segments or infrastructures as well as the practice of regulation. The payment market used as an example is due to the fact that, by now, it is on this market that the changes studied manifest themselves to the greatest extent.

p. 43-58

Authors: Victor L. Dostov, Pavel M. Shoust, Gleb V. Alekseev, Svetlana V. Krivoruchko

The goal of this paper is to identify relevant (general and particular) elements of electronic money regulation in Russia, Kyrgyzstan, Kazakhstan, Belarus and Armenia. For the purposes of comparative analysis, the paper first introduces the methodology by outlining such factors as the legal status of electronic money issuers (including prudential requirements), differentiation of customer due diligence requirements in e-money systems, e-wallet usage rules, and division between the issuing and e-money transfer functionalities. Second, these factors are analyzed for each country, based on current regulatory acts. Finally, synthetic conclusions regarding major regional trends for regulation of e-money as a financial service are made. In most countries, e-money issuers are subject to licensing for the purposes of financial stability. Yet, approaches to differentiating functions of e-money actors vary across countries: in some of them, regulation recognizes “e-money operators” which transfer e-money but do not issue it. However, actual effects of this differentiation merits additional research. Almost all countries have implemented remote (simplified) identification which underlines the role of e-money as a “simplified” product aimed at financial inclusion. All countries except the Republic of Belarus and the Kyrgyz Republic still recognize non-personified electronic wallets. The research confirms that electronic money is still a specific instrument aimed at supporting financial inclusion and satisfying demand for instant cashless payments. More research is required to assess the actual effects of different regulatory approaches on the development of the e-money market.

p. 75-85

Authors: Alexey V. Maslov, Yulia A. Maklakova

This paper examines the evolution of merchant acquiring in Russia. Initially, the term was purely professional and meant the involvement of “service points” in accepting cards. Today it denotes the whole range of business for the creation and development of the infrastructure of non-cash settlement and cash services in trade and service enterprises using payment cards. Technological innovation has spurred the development of acquiring tools. However, today, when the number of non-cash transactions is steadily growing and has almost reached the number of transactions using cash, the issue of acquiring fees is still a burning issue between retail and banks. The authors consider the positions of the two parties to the dispute, and also draw conclusions about the possible consequences if the requirements of retail or banks are satisfied.

p. 99-113

Authors: Alexander D. Andryakov, Evgeniy A. Dombrovskiy

Two possible directions of fiscal measures aimed at improving Russian territories’ economic development are discussed in the paper: one at the level of largest agglomerations and another one at the regional level. It is widely accepted that agglomerations are “engines” of economic growth. The Strategy of Spatial Development of the Russian Federation until 2025 pays special attention to the development of agglomerations. However, the latter process has not only natural limitations, but also institutional ones arising from low fiscal independence of municipalities which form agglomerations. To overcome the institutional limitations, the paper proposes a set of fiscal measures, including a redistribution of tax revenues and expenditure obligations between the center of a given agglomeration and the region that contains it. The current fiscal mechanisms of stimulating economic development of Russian regions are analyzed. A mechanism of additional stimulation for regions to develop their own revenue base is proposed; it includes the transfer of receipts of VAT levied with a reduced rate of 10 % to regions in exchange for centralization of some part of corporate income tax in the federal budget. Different scenarios of this exchange are analyzed. It is shown that centralization of the corporate income tax amount corresponding to the 1 % rate in the federal budget in exchange for the transfer of VAT levied with a rate of 10 % to regions with a compensation mechanism within the transferred amounts is neutral to the federal budget and to budgets of the regions which receive equalization grants.