Role of financial institutions on the economic growth of the national economy

Abstract

Increasing the economic development of Ukraine based on the effective redistribution of financial resources through the financial market mechanism is very relevant, since the development of the national economy is ensured. For this, a comprehensive study of the mechanism of functioning of the financial market and its investment orientation is required in order to increase the competitiveness of the national economy. The presented article reveals alternative approaches to the study of the place and role of the financial market in the modern economy, as well as the nature of interconnections and interdependence of the functioning of the financial and real sectors. The focus is on substantiating the concept of financial sector productivity and substantiating its role in financial support of the reproduction process. Its central idea is to strengthen the influence of the financial sector, financial markets, financial institutions on the investment process, economic growth and economic development in general. The market transformation of the economic and financial systems of our country leads to the complication of the structure of the financial sector, an increase in its role and increased influence on economic processes in the context of the rapid development of financial markets, financial institutions, and the introduction of new financial instruments. This not only predetermines the range of operations performed and the speed of capital movement, but also affects the level of competitiveness of the national economy. As a necessary condition for ensuring national security and increasing the level of competitiveness of the economy. It is advisable for Ukraine to define the formation of a competitive independent financial center, and also to ensure the direction of state regulation corresponding to the new conditions. It will eventually be contributing to the transformation of the financial sector into an effective mechanism for maintaining national competitiveness and financial support for sustainable economic growth.