Trends and Development Factors of the Non-banking Financial Sector in Ukraine

Abstract

The article describes the trends and factors of development of non-banking financial institutions in the Ukrainian economy. The authors analyze the current state and dynamics of the market development of the non-banking financial sectors on the basis of data on the number of financial institutions in the market, the volume of their assets, and the volume of services provided by them during 2013–2019. The article determines that the trend of decreasing or increasing the market participants is not generally traced, but it can be determined by individual types of institutions. In particular, financial institutions such as insurance companies, credit unions, pawnshops, and non-state pension funds had a declining trend in terms of the number, but the number of financial companies, on the contrary, increased. The article determines that most of the assets of the non-banking financial sector belong to financial companies, the second largest part of the sector is the insurance market, and institutions such as non-state pension funds, pawnshops and credit unions had small shares of the market assets during this period. With regard to services provided by non-banking financial institutions, it is determined that the main activity is attributable to financial companies and their services of “non-bank loans (micro loans)”, which occupies 51 % of the total market of services. The authors also describe the impact of macroeconomic indicators in Ukraine (GDP – gross domestic product, population income, public expenditure, inflation and unemployment) on trends and changes in the structure of non-bank financial intermediaries in the period of 2013–2019. JEL classіfіcatіon: G20-23, G29 Manuscript received 21.04.2020