Universal Journal of Accounting and Finance Vol. 9(4), pp. 875 - 884
DOI: 10.13189/ujaf.2021.090433
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Transformation of Household Savings into Investments: The Country's Credit Potential


Molchanova L. A. 1, Khokhlova S. V. 2, Basova N. V. 2, Makarova E. B. 3, Gyunther I. N. 4
1 Finance, Credit and Insurance Department, Russian Academy of Entrepreneurship, Russia
2 Department of Theory and Practice of State Control of the Institute of Public Administration and Civil Service, RANEPA, Russia
3 Finance and Credit Department, Institute of Economics, Management and Law, Russian State University for the Humanities, Russia
4 Finance and Customs Revenues Department, University of Cooperation, Economics and Law, Russia

ABSTRACT

The Russian economy's long-term growth is inextricably linked to an appealing and efficient investment process, without which it is impossible to upgrade output structurally and qualitatively, build market infrastructure, and boost local competitiveness. The pressing issue of adequate investment tools necessitates an active search for viable sources for domestic economy demands, which concretizes the problem of mobilizing the state's internal resources - the population's savings. According to the experience of countries with a high degree of economic development, population savings are the primary source of establishing the resource basis for ensuring long-term economic growth and development. The function of the domestic financial market in the process of converting savings into investments is examined in this article. It has been established that there is a link between the financial market and the investment process. Theoretical components of the essence of savings and how they are transformed into investments are exposed. The impact of household financial investment volumes on the country's economic development indicators is studied and the dynamics and structure of population savings in Russia. The issues surrounding the conversion of savings into investments are recognized and the directions for intensifying it to maximize the financial potential of savings for the implementation of investment programs.

KEYWORDS
Financial Market, Household Investment, Transformation of Savings

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Molchanova L. A. , Khokhlova S. V. , Basova N. V. , Makarova E. B. , Gyunther I. N. , "Transformation of Household Savings into Investments: The Country's Credit Potential," Universal Journal of Accounting and Finance, Vol. 9, No. 4, pp. 875 - 884, 2021. DOI: 10.13189/ujaf.2021.090433.

(b). APA Format:
Molchanova L. A. , Khokhlova S. V. , Basova N. V. , Makarova E. B. , Gyunther I. N. (2021). Transformation of Household Savings into Investments: The Country's Credit Potential. Universal Journal of Accounting and Finance, 9(4), 875 - 884. DOI: 10.13189/ujaf.2021.090433.