What is The Dialectic Process

The dialectic process is the change that occurred as a result of some action, any act or a process and the responsible body is opposing force. There are three main stages in the dialectic process, i.e., thesis, antithesis and the synthesis. When referred to the hypothesis, it is a set of argument or rules which are necessary to carry out a process as compared to the antithesis, which arises as the outcome when two opposing forces strike.

The regulatory dialectics is purely linked to the financial institutions that are related to the cyclical interaction, and the political and economic causes play an opposing role. Financial innovation is related to the dialectic process and further influenced by interrelated factors.

Financial Innovation in Dialectic Process:

The underlined factors are inflation, technology, regulatory environment and perceived market conditions. The high rate of inflation is directly related to the interest rate, deficit rise, and exchange rates. To stimulate the financial innovation of institutions, technology plays integral role, and it has relation to the instruments such as electronic devices and computers.

It is all about telecommunication and the rapid development of technology for the financial sector. This leads to introduce the new communication approach and the better transmission systems which are required to speed up the process of information flow.


The Dialectic Process and Change

The Regulatory Environment shows the relationship between innovation and regulation, and it is present in the historical events.  They can lead to the occurrence of further developments. However, the change in the perceived conditions of the market in the financial institutions is market driven.

These linked to the market and several products that firm offers. The customer always shows a demand for the product and pays for it while firm seeks revenue, development, and profitability. When talking about dialectic process related to financial institutions, there is always a market role in regulation.

It is evident that society is burdened with the tensions and contradictions related to market process and financial innovation. The dialectic process was started by Georg Wilhelm Hegel, a German Philosopher.

Dialectic process affected historical bank performances in 1970 because the application of economic and political forces affects cyclic interaction. This is why firms develop some rules for their benefit and to benefit other financial institutions to capture the large part of the market.

The regulatory system is evident from the many former firm’s performances, and the role is apparent by commercial banks. Banks are regulated and protected through the entry of new firms, to promote stability and to capture a particular geographic market.

Bottom Line

From the dialectic behavior and the primary operating economical and political forces, it is evident that the Hegel had presented correct notions. These were about the thesis, dialectic thesis, antithesis, and synthesis.

The argument creates forces that yield antithesis, and synthesis resolves the associated tension. This is how processes are interlinked, and dialectic process plays a significant role for the financial institutions.

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