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22.04.202404.2024с 01.01.2024
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Journal section "Territorial finance"

Regional Stock Market Development as a Tool for Increasing Investment Activity of the Vologda Oblast Population

Kharionovskaya T.L., Nikitina N.A.

5 (109), 2020

Kharionovskaya T.L., Nikitina N.A. Regional stock market development as a tool for increasing investment activity of the Vologda Oblast population. Problems of Territory's Development, 2020, no. 5 (109), pp. 67–82. DOI: 10.15838/ptd.2020.5.109.5

DOI: 10.15838/ptd.2020.5.109.5

Abstract   |   Authors   |   References
The article is devoted to the development of a mechanism for creating and operating an intraregional socially oriented stock market in the Vologda Oblast, aimed at increasing the population’s investment activity. Citizens' savings are an important investment resource that is currently underutilized for the development of the region's economy. The savings of the Vologda Oblast population are mainly concentrated in the form of deposits in commercial banks that provide low returns on private deposits. The development of the regional stock market will allow reinvesting temporarily available household funds in more profitable financial instruments for the population. The paper analyzes the level of securities market development in the Vologda Oblast, assesses the investment activity of the region's population, and identifies a significant potential for transforming savings into investments. The authors have developed a mechanism for an intraregional socially oriented stock market in the Vologda Oblast taking into account, first of all, the interests of the population and issuers of debt and/or equity securities through a specially created state body, the “Committee for the regional securities market development”. It is going to act as an intermediary between the issuers and the investors, when the issuers are provided with an access to additional sources of financing that are cheaper than a bank loan and compensation for the costs of issuing, and the investors are guaranteed an increased return on investment compared to a bank deposit. This mechanism assumes the regional commercial banks to play the role of professional participants in the securities market. The implementation of the proposed mechanism should result in attracting public funds to the regional companies’ investment projects. On a regional scale, its implementation will help increase the tax revenues of the regional budget, develop the investment potential of the region, and improve the standard of living of the region’s population


regional stock market, population’s investment activity, transformation of savings into investments

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