Regional Formation and Development Studies

The problem of financial stability of a modern enterprise predestines a long-term development of state. The long-term development strategy-making concepts, binding to each member state, have been legislated in the European Union. A sustainable development is a balanced and socially responsible economic development subject to preservation of the environment and resources for the benefit of future generations. A national sustainable development plan prior to 2020 is required for each EU country. Under the development priorities situation typical to Baltic States, featuring a relative deficiency of mineral resources with some possibilities of development of high-end technologies, transit industry may be deemed the main priority. The enterprise financial stability concept is the main objective, regarded as a mandatory condition for ensuring a long-term and sustainable development as exemplified by the two renowned air carriers. The methods of scientific research most frequently applied in economics domain have been used: monographic, comparative, hierarchical and quantitative methods of financial ratios.

The aim of this paper is to provide a structural review by analysing aspects of the relationship between prudential policy and systemic risk. It addresses the current research challenges associated with a lack of macro-prudential policy formalisation, guidance regarding its implementation and effectiveness measurement. Given the rising levels of interconnectedness between financial markets, the paper addresses the potential contagion or spill-over effects that foster change in systemic risk, especially in the case of market size differences. Finally, the paper discusses challenges associated with macro versus micro-prudential policy implementation, addressing difficulties in the measurement of systemic risk.

Maintaining the stability of financial leverage is a task in macro-economic management and also a challenge to be faced. Financial amplification characteristics dominate financial leverage system with low risk of capabilities, and the efficiency of this ability has two-sides results and proposes a lot of risks, however, most researchers have not found the best ways to solve this problem. Therefore, taking positive measures to strengthen the management of the financial system leverage feature becomes very important. In this paper, authors use comparative study and data analysis to illustrate the main problems of financial system leverage, the effect of leverage amplification characteristics, bi-amplified comparative analysis of profit and loss, and bi-amplification characteristics of the risk analysis. Meanwhile, based on five classified management methods, authors put forward countermeasures to the management of leverage properties in financial system.