Finance Science Research Articles

Оподаткування і фіскальна соціологія: фінансова думка Заходу та уроки для України

Introduction. In the process of fair interaction between authorities and taxpayers, a relationship of trust is created. This trust ensures support for government fiscal initiatives from the business sector. Conversely, if the relationship is not transparent and equitable, it can lead to a passive or even negative attitude towards taxes, thereby reducing the efficiency of the tax system. Problem Statement. There is a gap in Ukrainian fiscal theory, which is still underdeveloped in terms of fiscal sociology. Compared to Western countries, where fiscal sociology has already become an integral part of economic analysis, in Ukraine this issue has been studied only by a narrow circle of scholars. This limitation necessitates a deeper study and integration of sociological approaches into financial science, because without it, Ukrainian researchers and policy makers lose the opportunity to gain a more complete understanding of the interaction between economic and social processes. The purpose is to substantiate the directions of integration of fiscal sociology into Ukrainian financial theory and to develop recommendations for its inclusion into Ukrainian financial practice. Methods. The methods used are systematic, structural-functional, comparative analysis, analogy, grouping, description, comparison and generalization. Results. It is proved that by integrating fiscal sociology, Ukrainian fiscal theory can benefit from a more nuanced understanding of the socio-economic factors influencing fiscal policy. Such integration could lead to more effective policy making and a deeper understanding of the economic challenges facing Ukraine. Conclusions. Ukrainian academics and policymakers should prioritize the interdisciplinary study of fiscal policy, taking into consideration the rich tradition of fiscal sociology in the West. Joint efforts should be made to develop tax policies that strengthen state legitimacy by addressing issues of fairness, transparency, and trust. Strategies for managing public debt and improving tax morale should be a central element of fiscal policy to ensure that Ukraine's financial system can withstand socioeconomic pressures and contribute to long-term stability and development.

Evolution of the Concepts of “Financial Architecture” and “Financial Architectonics”

The development of financial markets and institutions has led to the complexity of financial systems, which in turn requires new approaches to their analysis and management. In this context, the concepts of “financial architecture” and “financial architectonics” are of particular importance. However, despite the widespread use of these terms in the scientific literature, their interpretation is often ambiguous and controversial. The purpose of the study is to examine the evolution of the essence of the concepts of “financial architecture” and “financial architectonics”, to identify their differences and interrelationships, and to formulate own definitions of these terms, taking into account modern approaches and trends in financial science. To achieve this goal, a number of theoretical methods were used, namely: monographic - for reviewing scientific publications related to the concepts of “financial architecture” and “financial architectonics”; comparative analysis - to identify the differences and common features between the concepts of “financial architecture” and “financial architectonics”, which allowed to formulate the main characteristics and relationships between these definitions; the method of systematic approach - to study the relationships between the elements of the financial system and their structuring, which allowed to consider financial architecture and financial architectonics as integrated concepts with certain characteristics and interactions; the method of historical analysis - to study the evolution of the concepts of “financial architecture” and “financial architectonics”, which allowed to trace changes in the definitions and approaches to these terms in the context of the development of financial science; the method of conceptual modeling - based on the generalization of the data obtained and the analysis of current trends in the financial sector, the author proposed her own definitions of the concepts of “financial architecture” and “financial architectonics”. Financial architecture is defined as a structured model that covers the regulation and management of financial components at the macro-, meso-, and micro-levels of the economic system, and financial architectonics is defined as a comprehensive concept that reflects the structure and interrelationships between the elements of the financial system. The distinction between these concepts allows for a deeper understanding of various aspects of financial management. Financial architectonics offers a broader view of the financial system, taking into account complex interrelationships and dynamic processes, while financial architecture focuses on specific structural components and their regulation.

Evaluation and application of local fiscal science and technology expenditure efficiency in the Yangtze River Delta urban agglomeration based on AHP-TOPSIS and SOM clustering

This study selected 18 indicators from four dimensions: the scale of regional fiscal science and technology expenditure, the social impact of science and technology, the efficiency of science and technology expenditure, and the environment for scientific and technological innovation, and constructed an evaluation index system for the efficiency of local fiscal science and technology expenditure in the Yangtze River Delta urban agglomeration. The AHP-TOPSIS model was used to determine the weights of evaluation indicators, and the efficiency ranking of fiscal science and technology expenditures in various cities of the Yangtze River Delta urban agglomeration was quantified. Furthermore, using the SOM algorithm for clustering analysis, the level division of innovation capability in the Yangtze River Delta urban agglomeration was clarified. This study provides a scientific tool and method for evaluating the efficiency of local financial science and technology expenditure in the Yangtze River Delta urban agglomeration, and provides solid theoretical support and practical guidance for promoting the coordinated development of regional science and technology innovation.

Financial Capacity of Insurance Companies as a Factor of Stable Development of the Ukrainian Insurance Market

Abstract The relevance of the article is based on an in-depth study of the financial potential of insurers and its impact on the insurance market, which provides valuable information for the stakeholders of the insurance industry. Therefore, this study aims to determine approaches to revealing the essence of the financial capacity of insurers, based on the scientific tools of financial science. The leading approach to the study of this problem is the analysis of the dynamics of liabilities (raised and borrowed funds) and equity capital of insurers and the relationship between them, which enables a comprehensive look at the impact of these indicators on the development of insurance market and internal and external factors that have both an objective and subjective impact on the financial capacity of insurers and the insurance market. The article defines the stages and methodology of assessing the financial condition of insurers. In particular, the normative method, the comparative method, the static method, the formallogical method, the economic-mathematical method, the method of analysis and synthesis became the leading research methods. These assessment methods are crucial for the timely determination of the current state of financial capacity and its potential. Using a multivariate correlation-regression model, the authors demonstrate the importance of various components of financial capacity. The presented results will be useful to various stakeholders in the insurance industry as they provide a deeper understanding of their financial strength, including the dynamics of liabilities, equity and leveraged funds. First of all, it was established that financial resources are the basis of financial capacity. Secondly, the definition of the insurance company’s financial resources as a source and component of the company’s functioning is formulated. Thirdly, it is shown that the insurer’s financial capacity is logically dependent on its investment capacity, which is determined by the amount of financial resources. It was also determined that financial capacity is a dynamic quantity and is manifested only in the process of its use and ideally should be accompanied by its growth. Among them, it was proved that the main components that significantly affect the formation of the financial potential of insurers and the growth of the insurance market of Ukraine are insurance reserves and authorized capital. These conclusions can easily become the basis for the formation of further state insurance policy, which will be followed through legislative reforms, increased competition in the insurance market and will result in an increase in the level of trust among the population.

THEORETICAL BASIS OF LOCAL BUDGET EXPENDITURES AS AN INSTRUMENT OF FISCAL POLICY AND A COMPONENT OF PUBLIC FINANCE

Purpose. The purpose of the article is to substantiate the theoretical foundations of local budget expenditures as an instrument of fiscal policy and a component of public finances. Methodology of research. The research is based on the use of scientific developments of financiers on the issues of local finance, budgeting and regional policy. For the scientific understanding of the theoretical basis of local budget expenditures as a financial instrument and a component of public finance, the research used special and general scientific methods – analysis, synthesis, scientific abstraction, systematization, argumentation, in particular: dialectical, monographic, analysis and synthesis – to study the theoretical basis of local budgets; dialectical approach – to interpret the concept of “local budget expenditures”; graphical – to visually display the content of the phenomena and processes under study; abstract and logical – in the formation of theoretical generalizations, assumptions, and conclusions. Findings. The economic essence is revealed and, based on the use of methodological tools of modern financial science, a comprehensive theoretical and methodological approach to the disclosure of the essence of «local budget expenditures» is formed. The functional purpose of local budget expenditures is clarified. The expediency of adherence to the principles of local budget expenditures is argued and the most important of them are highlighted. The modern forms of budget financing are characterized, which made it possible to systematize the types of local budget expenditures depending on the forms of their implementation. The author proposes approaches to solving an important problem of local self-government bodies - lack of full budgetary resources for the provision of public services. Originality. The theoretical principles of spending local budgets in the conditions of public finance reform are summarized. Based on the use of the methodological tools of the dialectical approach to understanding the essence of local budget expenditures, a comprehensive approach to this definition is formulated. The authors have improved scientific approaches to identifying the functional purpose of local budget expenditures, principles and forms of their implementation. Practical value. The substantiated conclusions and proposals made it possible to develop the conceptual apparatus of financial science, to improve the theoretical and methodological approaches to the implementation of local budget expenditures. Implementation of the proposals on the expediency of distinguishing in the Budget Code of Ukraine between local budget expenditures for the implementation of delegated and own powers of local governments and specifying the sources of financial support for these types of powers will help to ensure that public services are fully funded. Key words: budget expenditures, local budget expenditures, public finance, principles of budget expenditures, forms of budget expenditures, estimated financing, transfer financing, financial resources of local governments, fiscal policy.

Index Model with Modern Portfolio Theory and its Application to Find Optimal Portfolio in the American Stock Market

A crucial framework in financial science, the Index Model and Modern portfolio theory provide investors with a scientifically sound method of asset allocation. This study applies solver tables for data manipulation and computing to an empirical analysis of the theory in the setting of the American stock market. Based on predetermined criteria, 10 well-known stocks from various industries were chosen, IM will use these optimization inputs to discover the regions of acceptable portfolios for the various five situations of the extra limitations after calculating the necessary optimization inputs for the entire Index Model according to the month and everyday observations. The definition of the efficient frontier and identification of the portfolio with the highest Sharpe ratio and lowest variance under five distinct restrictions were made possible thanks to the help of the Solver table. The results of the empirical investigation support the relevance of the index model and portfolio theory in the American financial market by demonstrating its applicability and usefulness for global investors. According to the results, investors are encouraged to diversify their portfolios in accordance with the efficient frontier's rules in order to maximize profits while minimizing risks.

Сучасні аспекти методології наукових досліджень у фінансовій сфері

The article analyzes the theoretical and practical aspects of the concepts of "method" and "methodology" of scientific research in the financial sphere. The study analyzed general and special methods of scientific research that are widely used in the construction of scientific theories and concepts in financial science and practice. The influence of the martial law on the development of science and the financial sphere of the economy of Ukraine is significant and has many aspects. The article examines the concept of the methodology of a systematic approach to scientific research, which allows comprehensively solving financial problems under the influence of controversial factors.

Страховий ринок, ринок страхування і ринок страхових послуг: наукові погляди, нове розуміння і визначення

Educational programs need to be updated and improved, taking into account the latest legislative changes to correctly reflect the transformations of financial services markets and the evolution of the main concepts of financial science. This affects the quality of educational training, the scientific component in higher education institutions of Ukraine, and the professional competence of future practitioners and scientists. The article aims to reveal, improve the essence and formulate the definition of the concepts of the market of insurance services, insurance market, and market of insurance, taking into account the new legislation in the insurance field and achievements of financial science. The methodological basis of the research is the position of the theory of open economy, as well as the methods of system analysis. The study includes four sections: the first section provides a brief review of scientific works on the definition of the insurance market; the second section contains the analysis of Ukrainian insurance legislation regarding the insurance market; the third section presents the quantitative calculations and a new understanding of basic concepts; in the last subsection, the authors explain how the concepts of the insurance market and the market of insurance services differ, highlight the activities of the regulatory bodies of the insurance market, and show the unresolved problem of insurance guarantees in the market. The analysis points to the still unsolved problem of state guarantees of returning insurance premiums to clients if the insurer ceases insurance activity. In this regard, the expediency of creating the Insurance Guarantee Fund, which should become a participant in the insurance market, is argued. It was found that the concepts of the market of insurance services and the market of insurance are identical. The concept of the insurance market covers the market of insurance and is distinguished by the fact that there are regulatory bodies in the insurance market. Based on the provisions of the open economy theory and the analysis of behavioral aspects of market participants, the work proposes new definitions of the concepts of the market of insurance services and the insurance market.

ЕКОНОМІЧНІ КАТЕГОРІЇ ІНСТИТУЦІЯ ТА ІНСТИТУТ ЯК ОСНОВА ЛЕКСИЧНО-ПРАВОВОГО ВИЗНАЧЕННЯ ФІНАНСОВОЇ ДІЯЛЬНОСТІ В ЕКОНОМІЧНІЙ СИСТЕМІ КРАЇНИ

The article attempts to systematize knowledge about the financial environment by studying the scientific achievements of finance as a science and financial law as an indicator of the effectiveness of their adaptation in the practical plane. Various interpretations of such economic categories as "financial institution" and "financial institution" have been revealed. An own vision of the architecture of financial phenomena is proposed. Financial activity is implemented in the basis of financial institutions as the basis of financial science and the financial environment of society. An own concept of the architecture of the financial environment has been formed, based on which it is proposed to see financial institutions and institutions that regulate financial activities. It was established that the legal field of Ukraine contains a fragmentary identification of financial relations. The lack of a systemic vision of finance does not allow for the formation of an effective financial system, and the modern achievements of financial science are complicated and require complex transformation. We emphasize in the article that scientific systematization allows obtaining a basic result that contributes to obtaining the main priority archetype for determining economic categories. And scientific research should be based on periodicity and evidence in the layering of scientific achievements on the exclusivity of financial categories and concepts. The purpose of the research is the actualization and systematization of the theoretical and applied provisions of financial activity, the doctrinal understanding of financial institutions and institutes, the component of finance as a science. Based on the results of the scientific research, it is proposed to systematize knowledge in the field of finance as a science and to take subsidiarity as a basis as the main tool for the formation of systemic knowledge. An attempt was made to organize knowledge about financial processes in society through the prism of law as an effective indicator of the effectiveness and expediency of the implementation of theoretical achievements in the practical sphere of the functioning of the economy. It is recommended to review financial paradigms and form a clear system of the financial environment in codes, laws and regulations.

THE ROLE OF IVAN FRANKO IN THE FORMATION OF THE PARADIGM OF THE UKRAINIAN FINANCIAL SYSTEM

Introduction. The article is devoted to the theoretical and conceptual ideas of I. Franko. A scientific study of the main paradigms in the works and publications of the famous Ukrainian scientist is carried out, namely in the field of functioning of the financial environment of society, information is provided from the standpoint of understanding the evolutionary nature of the formation of approaches to the interpretation of the historical development of financial science. In order to obtain proper scientific results in the study of Franko's scientific work, the main scientific methods were used, namely empirical ones – to reassess the macro-financial analysis of the budgetary sphere of Galicia of the XIX–XX centuries; theoretical – for the projection of the scientist's ideas on the modern theoretical and applied realities of the functioning of society; synthesis – to identify relevant concepts for improving the country's financial system; abstraction – to identify the key directions and warnings of the great Ukrainian thinker regarding the financial and political development of society; generalization – for the formation of timely authoritative proposals of I. Franko, which strengthen the financial paradigms of modern financial scientists working on research of the financial environment of society, and the formation of key proposals for improving its institutions in conditions of uncertainty. The purpose of the article is to generalize the scientific heritage of I. Franko in order to reassess the main paradigms of the functioning of the modern financial system of Ukraine. Results. The main ideas and debatable issues related to the functioning of the country's financial system on the territory of Galicia during the period of the Austro-Hungarian Empire, especially the budgetary sphere, the business environment and the financial capacity of individuals, are allocated. Ivan Franko's approach to the study of financial relations and detailing of financial analysis at all levels of the economic system has been updated, which allows us to assert a significant contribution of the scientist to the development of macro-financial analysis. The main problems identified by the scientist in his research are considered and his own scientific vision for the prospects and proper adaptation of scientific proposals is formed. Conclusions. Based on the carried out research, the need to strengthen the role of higher education institutions, the mechanism for balancing budget revenues and expenditures and the financial and legal policy of social direction to strengthen the sovereignty of Ukraine and the development of its financial system is proposed and substantiated.

INSTITUTIONAL DESIGN OF ANALYTICAL TOOLS OF THE FINANCIAL CONTROL INSTITUTION

The article is devoted to the search for ways to achieve the stability of public finances, through the modernization of relations that positively change the infrastructure of the financial environment and, first of all, it concerns the institutions operating in it. The object of the research is the Institute of Financial Control. The subject of the study is analytical tools of diagnosis and assessment of the quality of state financial control in the country by agents of the Institute of Fi­nancial Control. The use of analytical tools with the specified purpose can be attributed to work with large data, i.e. "big data", and the process of using them as work with "raw data" with the help of "data mining" and "data extraction". The current state of affairs with the quality of data in the reporting of controlling institutions, taking into account their volume, leads to the opinion about the possibility of a certain subjectivity in the reporting data of controlling institutions, which violates the objectivity of the obtained result for the user of their reporting. In turn, the lack of objective data in the specified section leads to negative causes and their consequences. This scientific search will be devoted to overcoming them. The research will become the basis for solving an important task for the theory, methodology and practice of financial science, and, first of all, in matters of financial auditing (Government au­diting), from the modernization of reporting, assessment, diagnosis and goal setting of controlling institutions to the improvement of work on processing and analyzing big data and establishing criteria for the possibility of using AI (Artificial Intelligence). The main result of the carried out scientific research is the first proposed institutional design of both the powers of the financial control institute and its effectiveness in the form of indicators and parameters of the Effective Control Formula - i.e. their digitization, for their digital/numerical display. A formalized record was chosen as the design implementation method, which will be used to write down the powers and effectiveness as a set and, accordingly, the points of the set of its structure. The formalization was implemented with the help of the developed universal formula of the indicator (or Formula of the set of the indicator), written with the help of a certain abstract identifier for recording the point of the set as a structural element of one or another indicator. At the same time, the formalized record of the abstract identifier of the elemental structure of a certain indicator uses a specific code. The specified formula is an additional analytical tool (for individual tasks) and a tool used for in-depth analysis. The formula of the set of the indicator is, in fact, a converter for transforming standardized financial concepts (processes, phenomena, etc.), from the institutional sphere of financial control, into their digital/numerical form - that is, a digitization converter.

ІННОВАЦІЇ В ФІНАНСОВІЙ НАУЦІ ТА ЄВРОІНТЕГРАЦІЙНІ ПРОЦЕСИ УКРАЇНИ

The problems of innovation in financial science and European integration processes have a significant impact on the formation of the modern financial system of Ukraine. The authors have addressed these issues in a collective monographic work that reflects the evolution of the financial system of Ukraine: from the theoretical basis, through the realities of functioning to the prospects for its development in the context of European integration aspirations.

The Basics of General Financial Science by Antun Ferdinand Albely

This paper aims to present interpretations and modifications of the early 19th century legal and economic knowledge within A. F. Albely's The Basics of General Financial Science, a textbook which focuses on the aspect of public finances. Referencing his own work to other authors in this academic field, Albely participated in a disciplinary discourse which served as a hub for circulation of ideas. This paper's primary concern is revealing the sources of Albely's legal and economic knowledge and noticing modifications which occured in ideas between different texts. Digital text analysis, accessed at the web-available platform Voyant tools, will prove to be an important heuristic asset, as it will disclose textual environments of ideas appearing in the analysed texts. This approach will enable new interpretative possibilities in the investigative field of knowledge circulation, as it will employ results of digital text analysis in order to discern Albely's intellectual influences and give insight into an idea modification process.

The impact of financial technology on China's low-carbon transformation of energy and mechanism analysis.

Financial technology provides strong support for the low-carbon transformation of energy through digital technology. There is limited research on the relationship between financial technology and low-carbon transformation of energy, and the information transmission and connection between the two entities are still unclear. Therefore, this paper innovatively conducts in-depth research on the spatial effect between financial technology and low-carbon transformation of energy and further analyzes the intermediary role of green finance in it. Firstly, the spatial Durbin model and spatial intermediary effect model between financial technology and low-carbon transformation of energy are constructed. Then, based on the Moran coefficient, the spatial effects of low-carbon transformation in financial technology and energy were analyzed. Finally, an empirical study was conducted using the panel data of China's provinces from 2011 to 2020. The results show that financial technology can effectively promote the energy transformation, and financial technology and the degree of low-carbon transformation of energy have significant spatial effects. From the perspective of intermediary effect, financial technology can effectively improve the green finance structure and promote low-carbon transformation of energy. From the perspective of spatial intermediary effect, while promoting the development of green finance in the local area, financial technology will also suppress the development of green finance in surrounding areas, thereby inhibiting the low-carbon transformation of energy in the surrounding areas. Therefore, China should strengthen the development of financial science and technology, guide the transformation of traditional finance, improve the coverage of green finance, and realize the low-carbon transformation of national energy.

A NOTION OF FINANCE: AN ECONOMIC CONCEPT

The article shows that the Belarusian financial science is evolving on the basis of the classical (Soviet) theory. However,
 the neoclassical field is already forming in it. Developing the latter, the author proposes an economic concept of
 finance. The dialectical method is used in the exposition of its main provisions. On the way to the essence of finance the
 author relies on three terms: economy, money, process. In the process of cognition, he comes to the idea of the monetary
 condition of an economic agent, and defines it as value and (or) parameters derived therefrom of the property of this agent
 at a certain point of time. Changing this condition, according to the author, is the essence of finance. As a result, the author
 concludes that finance is economic flows that reflect the change in the monetary condition of an economic agent.

Place of the banking system of Ukraine in the post-war reconstruction of the country

Methods. The theoretical and scientific-methodological basis of the research was made up of the principles of financial science and banking. Methods of analysis and synthesis were used during the study of the impact of historical events taking place in modern Ukrainian society on the development of the banking industry. Factors ensuring the stability of the banking system of Ukraine in an unpredictable economic environment were investigated using the system approach. Factor analysis made it possible to determine the role of the banking system in the modern development of the national economy, as well as to determine its mission in the period of post-war recovery of the Ukrainian economy. Results. The study identified the specifics and problems of the functioning of the banking system of Ukraine in the conditions of martial law and outlined its role in the further post-war reconstruction of the country. The sensitivity of the banking system of Ukraine to the influence of martial law and the growth of external financing of the state and social sector was revealed. In addition, the study showed that the state of war has a serious negative impact on the lending processes of the Ukrainian economy: an increase in the level of non-repayment of loans, deterioration of the quality of bank assets. It is argued that this problem should be solved in the context of post-war reconstruction. The main areas of activity of the National Bank of Ukraine, the legislative authorities and the banking institutions themselves to overcome the negative impact of the martial law are determined, taking into account the international experience of the development of the banking system during the post-war reconstruction of the country. The received recommendations are aimed at developing the banking system and increasing its influence on the economic growth of the country after the war. Novelty. The study paid attention to lending by Ukrainian banks in the post-war period, and also took into account the impact of military actions on the territory of Ukraine. This made it possible to establish how military conflicts affect the financial stability of the banking system of Ukraine and how this is reflected in the lending of economic projects in the country. This interaction became a key element of the study, which contributed to a better understanding of the challenges facing the banking system of Ukraine in the conditions of post-war recovery. Practical value. Strategies for the development of the banking system in Ukraine in post-war recovery are proposed, using international experience and taking into account the state of war.

International currency legal relations and international economic relations: interconnection and interaction

International currency relations are considered through the prism of international economic relations. It is emphasized that the latter arise between subjects from different countries, between tax residents of different tax jurisdictions regarding the production, distribution, exchange and consumption of goods, provision and receipt of services, capital circulation.
 It is argued that international economic relations are manifested at different levels of the economy (micro-, meta-, macro-levels). Where the macro level is the level of state and interstate international processes; metalevel these are international ties of industry and regional importance; micro level is the level of connections between firms of different countries.
 International economic contacts, international economic interaction, international economic cooperation, international economic integration are considered in detail.
 It is proved that the existence of international economic relations gave impetus to the formation of international economic and international currency (monetary) law. So, in the context of international economic law, international currency law and the corresponding legal relations arose as early as the 19th century, and they received the greatest development in the second half of the 20th century. In the XIX-XX centuries currency and financial systems are actively developing both domestically and internationally. It also gave impetus to the formation and development of economic and financial science.
 The stages of the evolutionary development of the world monetary and financial system are considered. The main principles of the organization of currency relations in different periods are analyzed.
 Alternative options to the existing currency system proposed by various authors are critically considered.
 It is proven that the formation and development of international trade relations, the world economy, and the world currency system contributed to the formation of a certain system of legal norms regulating relations in the currency sphere. At the same time, such norms are considered within the framework of different legislation, studied in different academic disciplines.

The issue of economic and legal prerequisites for the emergence and development of compliance in the sphere of banking activities

The article examines the issue of prerequisites for the emergence and development of compliance, which is becoming increasingly widespread in the sphere of business in Ukraine. Compliance control is a necessary and mandatory element of the activities of Western companies, both financial and representatives of other areas of business. Compliance came to Ukraine relatively recently and has not become widespread in domestic business. The issue of compliance is relatively new not only for domestic financial science and law enforcement practice, but also for industries, agriculture, and medicine in the framework of control, prevention and prevention of risks associated with non­compliance with the requirements, rules, and regulations of the law. That is why in the field of ensuring banking security, it is necessary to comply with the requirements of the legislation regulating relations in the field of banking activity, with the aim of increasing the efficiency of operations, increasing competitiveness and investment attractiveness. Failure to comply with this requirement may cause irreversible consequences for the banking institution itself, for the state, as well as for investors, partners, shareholders and customers. Prevention of these negative consequences is the task of an effective banking compliance system as an element of Ukraine's economic security. For a better understanding of the meaning of the compliance procedure, in the article, the author singles out the economic and legal prerequisites for the emergence of compliance, its importance, development in Ukraine, and the consequences of applying this procedure. Recently, the banking system of Ukraine has been significantly affected by changes in economic conditions, namely military actions that caused a decrease in assets, created a large number of risks and threats for banking institutions. The current state of Ukrainian control over compliance with legislation in the compliance system in banking requires research and a critical analysis of its regulatory framework in Ukraine to determine effective directions for the development of legislation in this area. The author analyzed international compliance documents that define the principles of compliance, contain recommendations for building an effective compliance function, establish mechanisms for the implementation and functioning of the compliance control system, regulate issues of identification, assessment, management, and timely notification when compliance risks are identified.

Dynamic evolutionary characteristics and influence mechanisms of carbon emission intensity in counties of the Yangtze River Delta, China.

Clarifying the intrinsic mechanism of county carbon emission intensity (CEI) is essential for guiding the realization of a low-carbon economy as well as for the strategic goals of carbon peaking and carbon neutrality. However, at present, scholars mostly focus on provincial and city scales, with the identification of influencing factors and spatial effect mechanisms of CEI rarely included in the analysis framework. Herein, with the help of three spatial weight matrices, the spatial autocorrelation, the "F + S" influence factor identification method, and the spatial panel econometric model were used to analyze the evolutionary paths and influencing factors of CEI for 209 counties in the Yangtze River Delta (YRD) from 2007 to 2020. The results show that (1) the CEI of the YRD decreased from 1.998t/104 RMB to 0.858t/104 RMB. Furthermore, the spatial pattern was low in the southeast and high in the northwest, with high-value areas concentrated in municipal districts and resource-based counties. (2) Moran's I spatial autocorrelation index indicated significant spatial clustering of county CEI. (3) Financial science and technology expenditure, industrial structure, share of urban built-up land, and the urban-rural income gap affected the change in CEI and its spatial effect, whereas total imports and exports had a significant negative effect on local CEI. Therefore, to achieve China's "double carbon" goal, it is necessary to consider the five development concepts as the core, strengthen inter-county exchanges and collaboration, as well as promote collaborative management of the ecological environment.

The impact of fintech on carbon efficiency: Evidence from Chinese cities

Increasing carbon efficiency can slow climate warming. The role of financial technology (fintech) in carbon efficiency has become a concern. Based on data from 276 Chinese cities from 2006 to 2019, we discuss fintech’s direct impact on carbon efficiency. We also discuss the impact mechanism, the heterogeneous impact, and the spatial spillover effect using panel fixed effects, mediated effects, and spatial regression models. We offer the following findings: (1) Fintech can directly and significantly improve carbon efficiency in Chinese prefecture-level or above cities. (2) The mechanism analysis indicates that fintech can improve carbon efficiency by increasing financial science expenditure or green innovation. (3) The heterogeneity analysis indicates that fintech significantly impacts carbon efficiency in the eastern regions and cities with higher market potential. (4) Spatial regression models using economic distance or inverse distance matrices reveal that the role of fintech in enhancing carbon efficiency in cities is spatially significant. These findings may have profound implications for Chinese cities’ fintech development and carbon-efficiency targets.