THE INFLUENCE OF SAVING PROCESS TO REDUCTION THE EFFECTS OF INTERNATIONAL FINANCIAL CRISIS

A well-functioning international financial system is essential to allow an efficient allocation of global savings and investment, and provide the conditions needed to improve world-wide growth and living standards in all countries. Recent reduce the risks posed by global economic and financial integration. The marketing of saving instruments with capital protection feature are based upon a built-in asymmetry; they offer the full participation in stock market capital gains and the concentrated on them. Or, more likely, they are hedging their risks and thus they contribute to amplify current trends, be it downward or upward. The past period have reminded us that investors and creditors often tend to underestimate risks as they reach for higher yields. In periods of market euphoria, market participants can make credit investment decisions that might not otherwise have been made. In hindsight, the failure on the part of lenders and supervisors in the major countries include poor risk management practices, inadequate information as well as inadequate attention to available information, and capital standards that provide unintended incentives to lend to risky borrowers. Such excessive risk taking, combined with high degrees of leverage, can magnify the negative effects of any event or series of events.