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In the new global economy, public trust in the financial system has become a central issue for financial crises overcoming. There is evidence that trust plays a crucial role in regulating economic agents’ relationships. One of the most significant challenges for research is developing the unified methodological basis for element and integrated assessment of public trust level in the financial sector. This study intends to develop the methodology of public trust assessment in the financial sector at all levels, taking into account quantitative and qualitative indicators. This article examines the scientific and applied aspects of qualitative and quantitative assessment methods based on surveys of economic agents and economic-mathematical modeling tools, analyzing the researchers experience and outlines methodological approaches to assessing the public trust in the financial system in modern conditions. Important aspects are outlined, and the advantages and disadvantages of the different approaches for element and integrated assessment of public trust on different levels of the financial system are systematized. In order to estimate the public trust in the financial system, the multidimensional factor analysis was conducted based on a set of standardized financial indicators for the period from 2010 to 2020. Multidimensional factor analysis employed for data processing and analysis was performed in the computational system STATISTICA. The multidimensional factor analysis results show that trust in the financial sector was grouped into three levels: macro-, mezo-, and micro-level. The results show that the increase in nominal salary and an increase in the share of deposits and loans in the national currency in the loan and deposit portfolio of deposit-taking corporations are statistically significant and positively affect the level of trust in the financial sector. However, the deepening crisis of trust, in turn, is due to the dollarization of the banking sector, increasing the growth of cash outside deposit-taking corporations. The scientific novelty of the obtained results is represented by a set of theoretical and practical aspects of the study, namely the methodology of public trust assessment in the financial sector at all levels of manifestation, taking into account quantitative and qualitative indicators. [ABSTRACT FROM AUTHOR]

The article explains the necessity to transform monetary and credit policy as a result of creative, expedient, professionally orientated work of individual, professional community and national elite. Real economy and finance economy differ, they are dialectically interconnected and form respective basic systems. Sustainable functioning of economic and finance systems provides the foundation of social and cultural development and rise in nation welfare. The top management of the Bank of Russia, as a monetary authority, demonstrates its misunderstanding of the fact that it accepts initially conflicting postulates and later transforms them in concrete tools of pursuing monetary and credit policy. In the chain of historical events we can observe a line of causeandeffect relations, which predetermine historical process inevitability. What happened belongs to the past. However, it is necessary to draw conclusions by analyzing the historical experience, first of all it is essential for monetary authority, managerial, political, academic elite in order to understand the necessity of a new paradigm and to develop the concept of monetary and credit policy of Russia, which would comply with today’s realities, with complicated geo-political and geo-economic processes and would target at protection and guarantee of stability of the ruble, national finance system and national security.

The modern theoretical concept of independence is crucial for the establishment of institutional arrangements relating to monetary authority. It is theoretically demonstrated and empirically verified that a central bank can function effectively only if it is provided with institutional independence. The modern theoretical concept of central bank independence is presented in the first part of the paper, while the second part deals with applicable legislation defining the institutional framework and legal status of the National Bank of Serbia. By juxtaposing the formal and factual status currently afforded to the National Bank of Serbia with institutional arrangements derived from the practical application of the theoretical concept of independence, the author takes a critical position toward the domestic institutional framework. The adequate legal solutions are highlighted in the paper while, at the same time, the appropriate amendments are suggested for the solutions that clearly violate the institutional independence of the National Bank of Serbia.

This paper sets out to investigate the association between external debt and private investment in Nigeria, based on the debt overhang and financing gap theories. Using Granger causality, Johansen cointegration and Error correction mechanism, the short-run and long-run association on an annual data covering the period 1981-2016 was examined. The findings emanating from the estimated models show clearly that private investment is inversely related to debt overhang both in the short-run and long-run; marginal rise in current year debt service leads to more than proportionate decrease in current ratio of debt overhang; and interest rate, exchange rate and inflation rate are positively linked to debt overhang ratio. Therefore, it was recommended that rather than accumulating more debt, the Nigerian government should concentrate on investing potential resources. Furthermore, the monetary authority should work at ensuring favourable exchange rate and maintaining low interest rate. [ABSTRACT FROM AUTHOR]