Problems of measuring country's financial security

The aim is to define the key issues ensuring financial security of a country. The studies proposes a technique to calculate a country's quality management index for a financial as a weighted average of the country's overall compliance with key international standards, rules and principles in the sector. The study uses statistical information from the Consultative Group to Assist the Poor, the World Bank Database and the Organization for Economic Co-operation and Received: June, 2019 1st Revision: February, 2020 Accepted: May, 2020 Journal of International Studies S ci en ti fi c P a pe rs © Foundation of International Studies, 2020 © CSR, 2020 Journal of International Studies Vol.13, No.2, 2020 330 Development, to study financial security of the population in 142 countries with different levels of economic development. 47 variables, grouped into 10 aggregates, were included in the study: Disclosure of information upon opening a deposit account, Disclosure of information upon opening a credit account, Disclosure of general information, Periodic disclosure upon opening deposit accounts, Periodic disclosure Monitoring, Enforcing, Fair treatment, Recourses, Standards for complaints resolution. Analysis of the results show that the levels of financial security in the studied countries have a wide variation from the minimum to the maximum values. We see that among the countries with high levels of economic development, the leaders are Italy, Canada and Puerto Rico. Transition economies include Venezuela, Argentina and Mexico; among developing countries, we can mention Armenia, Azerbaijan and Uzbekistan.


INTRODUCTION
General issues related to the definition of the conceptual framework for financial security began to be discussed at the edge between the XXth and XXIst centuries, particularly during the period when common European financial and economic space was emerging. As a result, a number of regulatory documents have been developed by international organizations to set out the main provisions for regulating consumer rights at the financial services market in general and in the banking system as one of the key sectors in the financial market in particular. Most of contemporary scientists around the world during their study of the core indicators of the banking sector consumer protection, consider ten basic principles developed by the Financial Markets Committee of the Organization for Economic Co-operation and Development (in collaboration with the Financial Stability Board (FSB)) commissioned by the Ministers of Finance and the central banks of the G20 countries. These principles provide definitions for the role of internal and external financial institutions, openness and transparency of financial information, responsible business behaviour of financial service providers and authorized agents, protection of consumer assets and consumer personal information against fraud and abuse.
However, these provisions are of a recommendatory nature and do not provide an opportunity to obtain a comprehensive assessment of the country's financial security. The lack of a universal methodology of measuring the country's financial security actualizes this research. Thus, the aim of the article is defining the key issues ensuring financial security of a country. In the context of this goal, the study should test the main hypothesis regarding the presence of a direct relationship between countries 'economic development level and the level of financial security. The article consists of three main parts. The first part analyzes the existing research on a particular topic. The concept of financial security is considered differently by different groups of researchers which, on the one hand, are thinking financial security is a complex category that is formed under the influence of economic, social and financial determinants, and on the other -the public administration level and involves the use of the concept of a new public management. The second part of the article deals with the selection and use of methods for determining the integrated index of financial security. In the third part, a model is built and a hypothesis is tested regarding the presence of a link between financial security and the level of economic development of the country.

LITERATURE REVIEW
"Good Practices for Financial Consumer Protection" was one of the most well-known projects prepared by World Bank specialists headed by Susan L. Roultge, Senior Specialist for Private Sector in 2012. These "practices" form instruction on how to organize the level of financial security as effectively as possible. The work consists of three parts. The first part presents a detailed analysis of existing international measures aimed at improving the process to protect the financial environment. The second part gives a list of 39 common practices that should ensure the effective functioning of the country's financial security system.
A significant step in creating favourable conditions for regulating a financially secure environment in the European space was the development of the Markets in Financial Instruments Directive (MiFID) in 2004 by Financial Services Authority (FSA), the activity of which was subsequently extended to the European Union countries in 2007. This Directive is the successor to the earlier Investment Services Directive (ISD) since May 1993, which became obsolete due to the establishment of European Union as a powerful player in the international financial sector and complicating the process to control stakeholders' activity presented therein. However, in the future, the first MiFID has been amended and supplemented by some points, and as a result, there is an active version -MiFID II.
The main objective to create the Directive, starting with its first version of MiFID, was to ensure the effective functioning of the single European financial market, based on the principles of fairness, transparency and efficiency.
The key provisions of this Directive include: − expanding the international activity of investment companies by opening their branches in different European countries; − formation of an extended range of investment products and services that require authorization; − introduction of enhanced control over the financial recommendations of brokerage companies and the disclosure of key information regarding investment products; − the necessity to maximize information on the services and possible market risks of all entities in the European financial market. In addition, it should be noted that the MiFID II Directive also affects non-member countries of the European Union. In particular, increasing the market transparency level for all asset classes will enable non-European Union organizations to focus their activities on the European market; if the head office of the company is in a non-European Union country, and its main activity is in the European market, it implies compliance with the best management practices.
In their work, researchers pay much attention to the specific features of ensuring a high level of financial security for a particular country or region, taking into account their economic and geopolitical situation: Slovakia  Financial security of the country as a dynamic phenomenon, determined by such factors as financial literacy of the population, the level of the shadow economy development, the activities of insurance, banking and other financial companies, the stock market is reflected in the following works: (Boyko & Roienko, 2014 ), (Horsch, 2018), (Leonov et al., 2014(Leonov et al., , 2019, (Lyeonov & Liuta, 2016), , (Sebestova et al., 2018), (Shapovalova et al., (Ch & Semenog, 2017), (Djalilov, et al., 2015), (Li & Ouyang, 2019).

METHODOLOGY
The study used statistical information from the Consultative Group to Assist the Poor, (CGAP), the World Bank Database (Financial Access 2010, Global Findex, G20 -Financial Involvement Indicators) and the Organization for Economic Co-operation and Development, related to the study of financial security of the population in 142 countries with different levels of economic development. The study comprised the main aspects of the financial security system: the sphere of the existing legal framework; supervisory and executive powers; regression mechanisms. The information in this database was used to assess the financial security of the world.
The methodology underlying the evaluation was proposed in V. Sandararayan's (Yossifov et al., 2003) work during the interregional analysis of the level of the financial system transparency in different countries. Then, this technique was actively used by various researchers to solve various problems in the sectors of the economy. The essence of this method is to calculate the country's quality management index for the financial or any other market as a weighted average of the country's full compliance with key international standards, rules and principles in the given segment.
The Regulatory Governance Quality Index (RGI) for the separate country will be shown in the following way: , where n -number of standards, used to get the index; j -concrete set of standards; SCORE -an assessment of compliance with each standard, using a weighting scheme. , where for each standard, the degree of compliance by its country is determined as follows: 1 = nc (noncompliance) -number of noncompliance provisions; 2 = pc (partial compliance) -number of partial compliance provisions; 3 = bc (broad compliance) -number of broad compliance provisions; 4 = fc (full compliance) -number of full compliance provisions; 9 = not applicable/not answered -no data available.
According to the demonstrated technique in the research, only significant evaluations are taken into account (for example, items, for which no data are available for the country, are not included in the list used in the assessment).
In our case, the country's financial security (QP) level will be calculated as follows: SCORE consists of ten indicators, which in turn include the following indices (Table 1). An example of input indices, which are used to define the level of financial security of countries is presented in Table 2.

EMPIRICAL RESULTS AND DISCUSSION
The adhering degree of each indicator SCORE is defined by the following way (Table 3). The country's level of financial security was assessed based on the calculation of SCORE for every country and then a complex indicator was calculated. The calculation results for the studied countries are presented in the following figures (Figs. 1a, 1b, 1c).
Having analyzed the obtained level of financial security in the studied countries, we can see that Italy (864), Canada (797) and Puerto Rico (797) are leaders among the countries with a high level of economic development. Transition economies include Venezuela (831), Hungary (764), Argentina (763); among developing countries, there are Armenia (831), Azerbaijan (763) and Uzbekistan (730).
Thus, the highest level of financial security is observed in Italy, Armenia, Venezuela, Canada and Puerto Rico. Three of the five leading countries belong to developed countries, one to transition economies and one to developing countries. However, the nominal following of the calculated index does not mean that the consumers' interests in the financial services market in these countries are fully protected since its calculation is based only on financial security indicators. In our further studies, we will focus more on improving the proposed method to determine the country's financial security level by expanding the list of input indicators taking into account the internal aspects of the internal system functioning in the country.
The success of the financial sector development directly depends on the number of satisfied consumers involved. The reason for the financial instability of the country is the unwillingness of the population to accept the whole flow of financial information, which flows into life and constantly takes new forms. Financial policy, as a set of measures aimed at redistributing available resources in the financial system, must also ensure affordability, financial literacy, financial integrity and stability, which will certainly be the basis for protecting the interests of consumers in the financial services market. All of the above qualitative financial policy objectives require special attention from the regulator as they do not have a clear quantitative expression that could be compared with the reference value and draw conclusions about compliance / non-compliance with the set standards. However, many scientific studies have shown that affordability or, in other words, the level of financial involvement of the population has a direct positive relationship with financial stability, and this relationship is not one-sided.
However, nominal compliance with the calculated index QP does not mean that the interests of consumers in the financial services market in these countries are fully protected. Because its calculation is based only on financial security indicators. As mentioned above, financial security is a complex category. Therefore, in further research, we propose to adjust the QP index to the value of two criterias:  readiness of consumers to be both active participants in the financial services market and to take a number of measures aimed at ensuring their rights, which is identified through the level of financial education of the adult population (readiness to be protected -RP);  the actual involvement of the population in the financial services market is expressed through a group of indicators that characterize it (inclusion to the protection scheme -IP).
Thus, taking into account these criteria, we will be able to amend the QP index and prove the relationship between financial security and the level of economic development in the country.

CONCLUSION
According to the stated aim of the work, key problems to ensure the financial security of the country were identified. They are: to introduce the enhanced control over the financial recommendations of brokerage companies and the key information disclosure about financial products and services; the necessity to maximize information about services and the possible market risks of all financial market entities; to form a wide range of investment products and services that require authorization.
The study proposes a methodology for calculating a country's quality management index for a financial or any other market, as a weighted average of the country's overall compliance with key international standards, rules and principles in the segment. The study used statistical information from the Consultative Group to Assist the Poor, (CGAP), the World Bank Database (Financial Access 2010, Global Findex, G20 -Financial Involvement Indicators) and the Organization for Economic Co-operation and Development, related to the study of financial security of the population in 142 countries with different levels of economic development. A total of 47 variables, grouped into 10 aggregates, were included in the study: Monitoring, Enforcing, Fair treatment, Recourses, Standards for complaints resolution, Disclosure of information upon opening deposit, Disclosure of information upon opening credit, Disclosure of general information, Periodic disclosure upon opening deposit, Periodic disclosure upon opening credit. The analysis of the results showed that the obtained level of financial security in the studied countries has a wide variation from the minimum to the maximum value. We see that among the countries with a high level of economic development, the leaders are Italy, Canada and Puerto Rico. Transition economies include Venezuela, Argentina and Mexico; among developing countries, there are Armenia, Azerbaijan and Uzbekistan. Thus, in view of the analysis of the results obtained by all countries, the countries' economic development level does not play a key role in determining the maximum level of financial security, which indicates the presence of other determinants that need to be verified in future studies.