INTENSIVE AND EXTENSIVE MODEL OF MANAGEMENT IN THE FINANCIAL SYSTEM: EXPERIENCE OF UKRAINE-GERMANY

Abstract

The article analyses the features of the extensive and intensive model of management in a financial system on the example of Ukraine and Germany. The characteristics, priorities and measures implemented by these countries for the period 2010-2015 revealed that starting from 2011 neither extensive nor intensive model exists in a pure form, as all the existing models have features of both with one dominating. It was found out that the measures implemented in Ukraine and Germany for the period 2010-2015 were the most effective and the possibilities of their implementation for each country were disclosed. It was clarified that the most urgent problems for reforms in Ukraine are the problems of corruption, shadow economy and the transition to a new way of governing the financial system, which will focus on a result and take into account possible effects of decisions based on the relationships between branches. It is also advisable to develop an alternative package. It has been proved that it is expedient for Germany to learn from Ukraine’s experience of reducing the budget deficit and increasing the flexibility in the German financial system and its credibility and perception of innovations in finance and financial services. The expediency of development of joint Ukrainian-German projects for testing the innovations in the financial system in different situations and accelerating of a successful selection to enhance the financial stability has also been proved.