INTERNATIONAL CONNECTIONS AND INNOVATIVE DEVELOPMENT OF FINANCIAL INSTITUTIONS

Despite a numerous researches, which are connected with cooperation between financial institutions worldwide, there is constantly need to observe their current positions and innovativeness of their activities. The difficulties of such researches are arisen because of the integrated nature of above mentioned questions. In this research we examine the effect of increased international integration of financial institutions worldwide, its influence on the quality and innovativeness of financial services. To do so, we develop a new approach, which makes its possible to develop the connection and to model the theoretical function of connections between the level of international integration of national financial institutions and their innovativeness. Our results suggest that the level of innovative development of financial institutions depends on the measure of their international integration.