Financial Market Of Ukraine Research Articles

GEOPOLITICAL INSTABILITY AND ITS IMPACT ON FINANCIAL MARKET DYNAMICS: AN ARTIFICIAL INTELLIGENCE APPROACH AND SENTIMENT ANALYSIS

This paper investigates the impact of geopolitical instability, specifically the Russia-Ukraine conflict, on the dynamics of the Ukrainian financial market. The study focuses on key indices and companies, including the PFTS Index, Kernel Holding SA (KER), MHP SA DRC (MHPC), and Ukrnafta (UNAF). Utilizing advanced machine learning models—decision trees, Random Forest, and Long Short-Term Memory (LSTM) networks—the research predicts stock price changes in response to market volatility induced by geopolitical events. The analysis reveals a significant correlation between the onset of conflict and stock price fluctuations, particularly in the agricultural and energy sectors, with notable resilience differences across industries. The findings underscore the importance of incorporating predictive analytics for decision-making in turbulent market environments, offering valuable insights for investors and policymakers navigating uncertainty.

АНАЛІЗ ДІЯЛЬНОСТІ БАНКІВ НА ФІНАНСОВОМУ РИНКУ УКРАЇНИ

The article analyzes the activity of domestic banks in Ukraine's financial market and examines the state and dynamics of the banking system's assets, capital, and liabilities for 2020-2023. Ukraine's financial market is experiencing significant challenges due to martial law, but these hard conditions also driving radical change and innovation in the sector. Due to the specificity of their activity, banks occupy a special place in the market economy and have a significant impact on the development of the financial market and the economy of the country. The integration of the national banking system into the world financial space is one of the leading directions of economic globalization, which strengthens the requirements for domestic banking institutions to increase their competitiveness and efficiency in providing financial services. This makes it necessary to study the essence and peculiarities of the functioning of banking institutions in the financial market of Ukraine in the modern, changing conditions of the development of economic relations between subjects of the national and international economy. The trend of consolidation of the banking system and withdrawal from the market of unreliable banks or banks whose capital belongs to under-sanctioned owners has been revealed. It was determined that despite the decrease in the number of these institutions, there was no significant deterioration of the main quantitative and qualitative indicators of the bank's activity, which indicates the stability of the efficiency of their activity. The state, dynamics, and quality of the banking system's credit portfolio were studied, and banks' compliance with NBU prudential regulations regarding credit risk was analyzed. The consistently high value of 45% of the share of bank assets in GDP confirms the overall efficiency of these financial institutions. A positive thing is the reduction of NPL before the full-scale invasion, but with its onset, this indicator increased again. A characteristic feature of the activity of domestic banks at present is a significant increase in the interest of institutions in investments in securities, in particular, military government bonds, the share of investments in these securities in the total assets of banks is rapidly increasing. To stabilize the financial state of the country's economy under the influence of "force majeure" circumstances, the banking system must constantly adapt its activities on the financial market, acting as an intermediary in the circulation of capital and financial resources

PROBLEMS AND PROSPECTS OF FINANCIAL DERIVATIVES MARKET DEVELOPMENT

The article studies the problems and prospects of the financial derivatives market development. Globalizing the economic space contributes to transforming the stock market into the principal source of capital allocation. Still, the current conditions of the derivatives market in Ukraine do not correspond to the needs of the national economy, which requires strengthening the regulation of their activities to ensure the hedging of risks of market participants. The article analyses the dynamics of derivatives trading in the global exchange market, assesses the dynamics of world exchange trading in financial derivatives, and analyses the turnover of OTC derivatives in the EU. It also studies the dynamic changes in the amounts paid under the terms of contracts for derivative securities in the world by maturity, region and industry sector; the dynamics of options and futures trading in the global exchange market. In this analysis, we examine the trading volumes of derivatives within the financial market of Ukraine. We estimate the volume of trading within both exchange and over-the-counter markets, and present the dynamics of exchange contracts as well as the share of financial instrument trading in the securities market. The factors hindering the development of the derivatives market in Ukraine are identified. These factors include legislative shortcomings, the current level of derivatives market infrastructure, and the current state of development of the underlying asset markets. The article also analyses the derivatives market and provides prospects for its development. To ensure the future development of the financial derivatives market in Ukraine, it is essential to take certain measures. These include comprehensive regulation of the derivatives market, ensuring the operation of regulated markets and building their infrastructure, and introducing appropriate instruments to protect participants and hedge risks.

THEORETICAL ASPECTS OF THE ACTIVITIES OF FINANCIAL INTERMEDIARIES IN UKRAINE

Purpose. Analysis of modern approaches to defining the essence of financial intermediaries, highlighting their main functions and classifications. Methodology. The research is based on dialectics as a scientific and philosophical method of cognition, a systemic approach and an analytical method. When conducting the research, the methods of comparative analysis, system-structural, generalization, economic-statistical, abstract-logical, monographic, methods of analysis and synthesis were used. Results. Modern approaches to defining the essence of financial intermediation and its role in the financial market have been studied. It was determined that financial institutions that, in the course of their professional activity, either accumulate temporarily free funds of economic entities and use them to satisfy the demand for financial services of financial market participants, or provide services to the financial market, should be related to financial intermediaries. The views of modern scientists on the role of financial intermediaries are summarized. Among the main functions, the following are highlighted: redistribution and reduction of risks; provision of alternative ways of financing economic activities and consumer needs of citizens; accumulation of funds of business entities; achievement of effective investments by market participants; ensuring effective redistribution of capital: promoting the development of the financial market and its infrastructure; management of payment systems. Approaches to modern classification of financial intermediaries are considered.Attention is focused on the classification of financial intermediaries, according to the bank-oriented model of financial mediation in force in Ukraine. Practical significance. The results of the research consist in the possibility of practical use of the obtained conclusions to improve the activities of financial intermediaries in the financial market of Ukraine.

Retrospective analysis of factoring development in Ukraine: theoretical and legal aspect

The paper highlights the etymology of the concept of "factoring" in the national research area. We are aware of the fact that factoring is a financial commission operation in which the client assigns their accounts receivable to a factoring company with the objective of instant receiving a larger amount of the payment; guaranteeing the full debt repayment; and cost reduction of the account management. The essence and content of factoring are investigated from the perspective of theoretical and legal aspects. An analysis of the stages of formation and development of factoring in Ukraine is conducted, and the following four stages are identified: the first stage from 1990 to 1999 which refers to the formation of the factoring market; the rise in popularity of factoring marks the second stage from 2000 to 2009; the third stage from 2010 to 2019 depicts the crisis in the factoring market; the transformation of the factoring market characterizes the fourth stage from 2020 to the present day. It is determined that the war in Ukraine significantly impacts the financial sector as a whole and the financial market in particular. Without any exaggeration, the full-scale invasion has marked a turning point for the Ukrainian financial market, as well as for the entire global financial system. Currently, there is no legislative act in the domestic legal field that is dedicated to the complex regulation of the factoring institution. The analysis of the current legislative framework has revealed a low level of legal support for the factoring market.

Foreign securities: Issues and prospects for the Ukrainian stock market

The analysis of the current state and identification of problems of foreign investment in Ukraine are related to various factors and aspects, including the instability of the economic environment, insufficient development of the legal framework, etc. Therefore, the study aims to analyse the circulation/use of securities and identify problems and opportunities for the development of the Ukrainian stock market. To achieve this goal, various scientific methods were used, including synthesis and analysis, formal legal and other methods. It is established that due to the implemented reforms aimed at modernisation, the financial market of Ukraine is open to investors and has expanded opportunities compared to the past. It is noted that the war initiated by Russia has led to a significant increase in the investment gap between Ukraine and other countries. It is emphasised that new measures are needed that have the potential to contribute to economic recovery in the future and strengthen its resilience to possible economic shocks. To ensure the efficiency of the investment process, it is proposed to use the most appropriate and effective strategies that should be included in the provisions of the Resolution of the Cabinet of Ministers of Ukraine “On Approval of the State Strategy for Regional Development for 2021-2027”. The author proposes an integrated mechanism for attracting foreign investment, which provides for the establishment of a favourable investment climate and intensification of investment activity. Recommendations that can be used to improve legislation on attracting foreign investment in securities have been formulated and substantiated. These proposals may be useful for the practical activities of state authorities aimed at supporting foreign investment in securities in the current stock market of Ukraine

INVESTMENT OF HOUSEHOLD SAVINGS IN CONTEXT OF THE INFLUENCE ON FUNCTIONING OF PUBLIC FINANCES IN THE CONDITIONS OF THE WAR

Introduction. In the current extremely difficult financial and economic realities associated with Russia’s full-scale military invasion of Ukraine, studies of household savings as one of the potentially important sources of investment resources needed to end the war and further restore the national economy are of utmost importance. Therefore, the problems of active transformation of such savings into investments with the help of modern financial instruments operating in the financial market of Ukraine (primarily domestic government bonds and military bonds), which in the conditions of a full-scale war can become a significant resource for the development of public finances in general and support of the Armed Forces of Ukraine in particular, remain important. The purpose of the article is to study current trends in the investment of savings of domestic households in the context of a full-scale war and the impact of innovative instruments of such investment on the development of public finance in Ukraine. Results. The article analyzes the pragmatics of investing accumulated savings by Ukrainian households in the context of their impact on the development of public finance in the context of a full-scale war, identifies the advantages and disadvantages of each of the investment instruments under consideration and emphasizes the need to increase the level of financial literacy of Ukrainians in the context of the development of state-creating financial patriotism of the nation. Conclusions. Identification of the key advantages and potential risks of investing household savings during a full-scale war made it possible to substantiate the significant impact of such investment on the functioning of public finance in Ukraine and to justify the directions of intensification of investment processes at the level of domestic households in the current conditions.

The Role of Insurance Companies in the Financial Market of Ukraine

The Role of Insurance Companies in the Financial Market of Ukraine

Functioning of banks with foreign capital in the context of ensuring the financial security of Ukraine

The article examines modern features of the functioning of banks with foreign capital from the point of view of ensuring the financial security of Ukraine. It was established that banks with foreign capital play an important role in the development of the country's financial sector: in 2019–2023, they formed more than a quarter of the volume of net assets, liabilities and net profit of the domestic banking system. At the same time, according to the results of the analysis of the trends of changes in the specific indicators of infrastructure, net assets, liabilities and profit, a reduction in the presence of banks with foreign capital in the Ukrainian financial market was recorded due to the worsening of the geopolitical situation in the country. The declining nature of the rate of growth of lending by banks with foreign capital to individuals and legal entities was noted. At the same time, it was emphasized that the less rapid fall in the volume of lending to business entities compared to lending to individuals is due to several stimulating measures by the Government and the National Bank of Ukraine regarding the more active participation of banks in lending programs of the real sector of the economy. The change of priorities in the activity of banks with foreign capital towards the investment direction is also noted. Based on the analysis of the dynamics of the share of foreign capital in the authorized capital of Ukrainian banks, it was revealed that the level of concentration of foreign banking capital in the national financial system has decreased by almost four times. Conclusions were made about the probability of additional financial risk and the threat of deterioration of the economic situation in the country due to the reduction of access channels to foreign investments. In this regard, it is proposed to increase the competitiveness of domestic banks by actively implementing the principles of sustainable development. It is emphasized that for the implementation of ESG approaches, there is a need to improve the organizational culture of banks, to establish effective interaction with society and state authorities. It is noted that the high positions in the ratings of banks with foreign capital confirm the possibility of forming a positive reputational impact based on the effective management of ESG risks of banking activity, which contributes to increasing the volume of assets and profits of banks.

ЗАРУБІЖНИЙ ДОСВІД ТА ВІТЧИЗНЯНА ПРАКТИКА ВИКОРИСТАННЯ ТА РЕГУЛЮВАННЯ ФІНАНСОВИХ ІНСТРУМЕНТІВ НЕБАНКІВСЬКИМИ ФІНАНСОВИМИ УСТАНОВАМИ В УКРАЇНІ

In the contemporary economic landscape, the non-banking financial services market has attained a significant prominence within the economies of developed countries. The primary objective is to examine the European experience, which will facilitate the selection of an appropriate model for the contemporary market of non-banking financial services and its instruments. The objective of this article is to examine the international experience of utilising and regulating financial instruments by non-bank financial institutions, with a view to assessing the feasibility of implementing this approach in Ukraine. A variety of scientific materials and individual methods were employed in the course of conducting the study. The abstract method was employed to analyze the professional literature on the subject, both domestic and foreign. To ascertain the potential for the advancement of financial instruments by non-bank financial institutions in Ukraine, the theoretical generalization and systematic methods were employed. The study's information base is comprised of official sources and data from recognized financial services market analysts. This article examines the experience of non-bank financial institutions in other countries. This study identifies the principal financial instruments and sources of financial resources for non-bank financial institutions in Ukraine. The regulatory and supervisory systems for financial institutions in Ukraine and abroad are examined, and the differences between them are identified. The primary challenges associated with regulating the activities of non-bank financial institutions in Ukraine have been identified. It has been concluded that the advancement of regulation and supervision in the Ukrainian financial market should be based on contemporary approaches and novel regulatory principles observed in European practice. This entails the unification of regulatory procedures, the implementation of risk-based supervision and the establishment of standardized risk management procedures, the reinforcement of control over the owners and managers of financial institutions, as well as the concentration and integration of regulatory functions within a single regulator. An additional crucial factor is the regulator's capacity and inclination to collaborate effectively with international financial institutions and their associations. The effective advancement of lending activities in the non-banking financial sector necessitates not only an enhancement in the level of borrower protection through the optimization of state regulation, but also an expansion in consumer financial awareness.

Main problems of the derivatives market in Ukraine and ways to solve them

This article highlights one of the key problems of the financial market of Ukraine – the development of the derivative securities market. The relevance of the study of the problems of the market of derivative financial instruments based on the example of Ukraine is substantiated. Special attention is paid to the study of the scientific works of Ukrainian researchers and scientists, their results and the significance of these works for Ukraine. The article also highlights interesting approaches and relevant information on the basis of which this research was conducted. The main types of derivative securities (forward and futures contracts, options, swaps and warrants) and their key features are characterized – essence, terms of conclusion, functions and significance for the market, roles of participants in these operations, etc. The use of these derivatives is explained, with advantages and disadvantages indicated. The principles of the functioning of the derivatives market in Ukraine are also described and researched, the main types of derivatives concluded on the Ukrainian financial market over the past few years and the prevailing trends in this area are mentioned. With the use of statistical data and comparative analysis, the dynamics of the main indicators of the Ukrainian derivatives market were studied, compared with some indicators inherent in the world derivatives market, and graphically interpreted. With the help of general scientific methods of synthesis, induction and deduction, the main differences between the indicators of the Ukrainian and world markets of derivative financial instruments, as well as possible reasons for their appearance, were determined. The main internal shortcomings of the derivative securities market in Ukraine are highlighted. The influence of the mentioned shortcomings was studied, the negative consequences of the pandemic and full-scale war on the dynamics of these indicators were proved. In contrast to the described shortcomings, attention is focused on successful participants of the derivative securities market and the results of their activities. Key trends were also displayed graphically. In conclusion, the intended strategy of our state in solving the existing problems of the derivatives market is described, and its own ways of solving them and accelerating the development of the derivative financial instruments market in Ukraine are proposed.

ПРО СИСТЕМНИЙ ПІДХІД ДО ОРГАНІЗАЦІЇ ВНУТРІШНЬОГО КОНТРОЛЮ ТА ФІНАНСОВОГО МОНІТОРИНГУ У БАНКАХ

The article discusses approaches to organizing internal control procedures in banks, as well as the execution of tasks related to financial monitoring for checking clients and their transactions. Over the past decade, regulators in the Ukrainian financial market have significantly increased requirements for internal control systems, and the cost of organizing corresponding procedures has significantly risen. The increased requirements are linked to the growing risks in the activities of banks, the elevation of international standards in the prevention and combating of money laundering, terrorism financing, and the funding of the proliferation of weapons of mass destruction. For banking institutions, it is crucial to ensure an acceptable level of operational risks. However, excessive spending on internal procedures can hinder business development. In contrast to the classical approach where internal control serves only to ensure financial stability and minimize operational risk, the possibility of contributing to business development is considered. Internal control procedures can become instruments for creating added value. Mechanisms for implementing a risk-oriented approach to organizing internal control procedures are proposed, with a focus on directing main resources towards areas of heightened risks. If the cost of servicing operations exceeds the financial result of the operation itself, the use of relevant procedures is not advisable. The article provides examples of implementing internal control in a bank, conducts a detailed analysis of typical mistakes, and provides examples of implementing best practices in the automation and digitization of the control environment. Digitization of banking products should also extend to the organization of bank procedures. The development of modern fintech technologies not only enhances the efficiency of internal control but also ensures the cost reduction of relevant procedures. As a result of the research, recommendations are formulated for constructing an internal control system considering the needs of business and operational departments.

ФІНАНСОВІ ТЕХНОЛОГІЇ В СИСТЕМІ РОЗВИТКУ БАНКІВСЬКОГО СЕКТОРА

The article is devoted to the role of financial technologies in the development of the banking sector. The article analyzes financial technologies as a driving force for the development of the banking sector, a tool for competition in the financial services market, and a measure of globalization innovations in the financial sector. It is established that the high development of competition in the financial services market in Ukraine leads to the intensification of financial institutions. New methods are recognized and studied to improve the efficiency of functioning, especially through the introduction of financial and information technologies in the field of customer service, the release of new products and services. Financial technologies are used in all functions of the financial sector, from payment to savings, lending, risk management, and advice. Fintech is becoming an integral part of society, and fintech solutions are becoming more and more relevant. The majority of fintech companies come from the United States of America and China, and these two countries were also the home for 8 of the 10 largest fintech companies in the world in January 2024. It is determined that the fintech industry's revenues are increasing annually. The most intensive development is shown in the Asia-Pacific region, and the European fintech industry developing at a slower pace. As of January 2024, the Americas (North America, South America, Central America, and the Caribbean) was the region with the largest number of fintech companies in the world. In 2022, investment activity slowed significantly, particularly in the America, most likely due to the economic decrease caused by the COVID-19 pandemic. It is determined that fintech companies are going to become a key driving force in the development of the Ukrainian financial market in the future, as well as the improvement of the Ukrainian financial system, so their development is supported by the National Bank as the state regulator of the financial sector, and the experience of leading countries shows the inevitability of implementing financial innovations in times of high turbulence in financial markets.

Activities of banking institutions on the financial market of Ukraine

The subject of the research is the theoretical, methodological and practical principles of the activity of banking institutions in the financial market of Ukraine. The purpose of the article is to study of the peculiarities of the activity of banking institutions on the financial market of Ukraine in modern conditions. Method or methodology of research. In order to solve the set tasks in the article, a set of methods of scientific knowledge was used, which made it possible to realize the conceptual unity of scientific research. The system method, the method of comparison, analysis, scientific abstraction and generalization is applied. Results of the article. The article examines the peculiarities of banking institutions in the financial market of Ukraine. Factors influencing the development and activity of banking institutions are systematized. The need for prompt response and adaptation of banking institutions to changes in the dynamic external environment for their successful activity was determined. The dynamics of the main activity indicators of Ukrainian banks for 2013–2022 were studied and analyzed. The dynamics of revenues, expenses, and financial results of Ukrainian banks were considered. It is noted that the profitability of assets and the profitability of banks' capital are important indicators that testify to the effectiveness of banking institutions in the financial market of Ukraine, their dynamics during the analyzed period were considered and relevant conclusions were drawn. Field of application of results. The results of the research can be used by banking institutions in order to optimize their activities. Conclusions. Banking institutions occupy an important place in the financial market of Ukraine. The study of the latest trends in indicators of the activity of banking institutions in Ukraine shows that during the analyzed period the number of banks is constantly decreasing. In addition, the banking crisis, which was observed in the period 2014–2017, was noticeable on the activity of banks. Also, the trend towards a decrease in the share of bank assets in GDP is characteristic of the modern banking system. Therefore, taking into account the difficult times of functioning of banks in Ukraine, it is necessary to take a set of measures to increase the efficiency of their activities on the financial market.

Banking Innovations: Marketing Support in the Financial Market of Ukraine

The purpose of the article is to implement a comprehensive approach to assessing the relationship between marketing of banking innovations and financial stability of banking institutions, which under the influence of digital technology determine the innovative capabilities of the banking system, activating the innovation potential of the financial market. The leading method of research of this problem is the modeling of modified technologies that form a platform for the advancement of new banking products, considering determinants of influence on the development of modern marketing of bank innovations, allowing treating this problem as a process of purposeful transformation of the 4P marketing complex and its digitalization. The article presents a structural and functional model of the relationship between the priority areas of the “blue oceans” and the signs of evaluation of the marketing of banking innovations. An integrated assessment of the relationship between the innovation components of the marketing complex of banking innovations and the financial stability of banking institutions of Ukraine is made.

FORECASTING OF THE MAIN SEGMENTS OF THE FINANCIAL MARKET OF UKRAINE

The article analyzes and builds economic and mathematical models for forecasting the main segments of the financial market of Ukraine:: the banking market; stock market; insurance market. The role of the financial market in modern civilized society is huge. Its functions include the mobilization of capital, its distribution among industries, control and support of the reproductive process, as well as increasing the efficiency of the economic system as a whole. The turning point for the Ukrainian financial market was 2022, namely the beginning of a full-scale Russian invasion, which led to the isolation of the financial market of Ukraine due to the introduction of martial law. In order to identify the key challenges for the development of the financial market, it is necessary to forecast the dynamics of its main segments using the tools of economic and mathematical modeling. A feature of the development of the domestic financial market is that the main part of the state’s financial resources is concentrated in such subjects of the financial system as deposit (commercial) banks; non-deposit financial intermediaries (insurance companies); subsidiary financial corporations (stock exchanges). According to the constructed forecasting models, it can be concluded that, all things being equal, in 2023 and 2024, the tendency to decrease the number of operating banks will continue and will be 59 and 54, respectively. As for the share of commercial banks with domestic capital, it will remain at the same level in 2023 and decrease by 4% in 2024. The number of insurance companies will decrease to 111 in 2023 and increase by 8 in 2024. Regarding the size of their assets, in 2023 there will be a decrease to the level of UAH 68,557 million, and a slight increase to the level of UAH 69,283 million in 2024. The share of the exchange market in the total volume of trades on the securities market will increase to 62% in 2022 and to 66% in 2023.

Current trends in the development of financial intermediary in the context of military challenges: the Ukrainian case

Introduction. The current situation on the financial market of Ukraine, in the conditions of military challenges, depends not only on financial and economic factors, but also on social, political and security factors. The war defines non-typical rules for the functioning of both financial intermediaries and the financial market in general. Safety of all participants and creation of conditions for access to financial services in conditions of fragility of the financial intermediation system became the main dominant factors. And this, in turn, requires the rapid reorientation of financial intermediaries to remote communication channels, digitization of services, flexible policy in the field of regulation, the search for new alternative sources of replenishment of resources, ensuring financial stability and liquidity, the search for new tools, quick response to challenges related to with wartime activities. All of the above causes considerable pressure on the functioning of financial intermediaries, who are responsible for their financial stability. Goal. Elucidation of the main factors affecting the state of the financial market in the conditions of military challenges; analysis of the real state of financial intermediaries and generalization of factors and reasons for the reduction of market activity and the fragility of systems and financial intermediation; justification of the need to change the policy of prudential supervision; identification of the potential and channels for the introduction of financial innovations to improve the market; outline of the main trends in the development of financial intermediaries in the post-war period. Results. It was found that financial intermediaries in Ukraine work during the period of "shock" challenges caused by wartime. It is shown that their activities are aimed at introducing financial innovations and ensuring stable access of consumers to all financial services. The pragmatism of the functioning of financial intermediaries in the financial services market, their real state, the problems of activity and state regulation are revealed, the challenges faced by financial market participants in the wartime period are emphasized. It is argued that in the conditions of the fragility of the financial intermediation system, ensuring the sustainability and stability of the activity of financial intermediaries, their effective activity, openness and transparency has an important place. The importance of inclusiveness in the activities of financial intermediaries has been demonstrated. It is proven that military challenges became a systemic determinant of the "cleansing" of the financial market, forcing a part of financial intermediaries (usually from the market of non-banking financial institutions) to make a difficult but responsible decision - to leave the market. Under such circumstances, it is important for the state regulator to take preventive measures aimed at supporting this sector of the financial market. Another challenge is operating in conditions of total economic decline and lack of financial resources to fulfill the obligations assumed. Financial intermediaries are ready to make concessions and soften the terms of obligations, however, there should be counter-steps in the system of regulatory policy to create soft rules and requirements in war conditions (reducing the level of provisioning for overdue loans, canceling the norm of the ratio of productive and non-productive assets, the level of profitability and softening of other activity indicators for the period of the war and the determination of a specific and adequate period of recovery in the post-war period). Conclusions. Based on the results of the conducted research, the following conclusions were drawn: new trends are crystallizing in the financial market of Ukraine and in the system of financial intermediation; the issues of introducing technologies for remote and asynchronous access to services provided by financial intermediaries into the activities of financial intermediaries are updated; military challenges cause serious changes in the configuration of the financial market, both in terms of the segmentation of financial intermediaries, and in terms of the introduction of innovations in the financial intermediation system.

Financial market of Ukraine: analysis of the current state, threats, problems and prospects

The financial market of Ukraine is undergoing significant challenges due to martial law, but these difficult conditions also encourage radical changes and innovation in the sector. One of the new development vectors is digitization, which becomes a necessary tool for conducting operations and exchange of information in war. The use of digital technologies and electronic payment systems helps to ensure the safety, convenience and efficiency of financial transactions. Increasing the availability of financial services is another important area of development in the financial market during martial law. In order to facilitate the financial situation of people who are undergoing financial difficulties, it is important to provide access to various financial services for all segments of the population. The use of virtual communication technologies can reduce geographical and physical restrictions, giving people the opportunity to receive financial services in a convenient way for them. Despite all the challenges, there are factors that contribute to the functioning of the financial market in the conditions of martial law. Understanding the problems and needs of the market allows financial institutions to adapt to new conditions and look for effective solutions. An important role is given to the adaptation of the legislation to new realities and to promote innovations in the financial sector. In order to ensure the successful functioning of the financial market in war, it is necessary to create a favorable regulatory and regulatory framework that would support the introduction of the latest technologies and innovation. In addition, the creation of partnerships between different industries, such as the financial sector, technological companies and government bodies, is an important element of the development of the financial market. Joint work and knowledge exchange allow you to create innovative solutions and put them into practice. For example, creating specialized financial companies that combine financial and technological knowledge can contribute to the rapid development and implementation of new financial products and services. In the light of martial law in Ukraine, it is important to pay attention to the creation of financial systems from cyber attacks and abuse. Cybersecurity development and the use of modern encryption and identification technologies can help prevent financial crimes and maintain confidence in the financial system. The war in Ukraine has become a catalyst for changes in the financial sector. Digitalization, automation, increased availability of financial services and inclusivity are key vectors of development. Success factors include understanding the needs of the market, adaptation of legislation, innovation and creating favorable conditions for financial intermediaries. All these changes are aimed at improving the efficiency, safety and availability of financial services for the population during the war.

МЕХАНІЗМ ФОРМУВАННЯ ІНВЕСТИЦІЙНОГО ПОТЕНЦІАЛУ НЕБАНКІВСЬКИХ ФІНАНСОВИХ УСТАНОВ

The problems of the low efficiency of the functioning of non-banking financial institutions (NFIs) on the financial market of Ukraine are considered, the main reason of which is the imperfect and unsta-ble regulatory and legal support of their activities. The main tasks of state regulation of the activities of financial market entities, in particular NFIs, and the proposed concept of state regulation of their activ-ities are defined, where the entities of state regulation and their functions, methods and tools aimed at creating favorable conditions for the functioning of these institutions are defined. The role of NFIs as financial market entities whose limited functionality is determined by the low level of their investment potential is identified and assessed.The role of institutional and infrastructural support in creating proper conditions for the func-tioning of the NFU has been revealed. The importance of institutional support in creating favorable conditions for the formation of the investment potential of NFIs is assessed. The scheme of the mecha-nism of formation of the investment potential of the NFU is proposed, which includes financial and institutional components that functionally complement each other in the process of formation and ex-pansion of the investment potential. Each of the components has its own functions, methods, levers and tools, which allows these components to effectively implement their role in the process of formation of investment potential

ОСОБЛИВОСТІ ВПЛИВУ ШТУЧНОГО ІНТЕЛЕКТУ НА БАНКІВСЬКИЙ СЕГМЕНТ ФІНАНСОВОГО РИНКУ УКРАЇНИ

Over the past couple of years, the global economy and financial sector have been increasingly affected by the development of digital technologies. Access to technology, advanced analytics, data and an innovative culture have given FinTech companies advantages that they have used to transform the banking ecosystem. It is these elements that have made it possible to influence access to financial services, payments, infrastructure, distribution and components of the safety and soundness of the banking sector. In today's conditions, artificial intelligence is one of the most important elements that affect the process of digitalization of the economy. With the help of artificial intelligence technologies, the subjects of the banking services market are able to reduce costs and gain remote access to consumers. Innovations related to the use of artificial intelligence enable the transformation of traditional automated remote banking customer service systems into a new technological and informational dimension, resulting in the formation of digital banking. The article examines the impact of artificial intelligence (AI) on the banking sector of Ukraine. The scope of the use of AI technologies in the banking sector, the types and methods of their application are considered. The article analyzes the use of AI in various aspects of the banking sector, including process automation, digitalization of banking services and improved customer service. Among the well-known areas of application of artificial intelligence in the banking sector are chatbots for customer support, risk assessment and credit scoring systems. However, it is emphasized that personalized services have also gained popularity in recent times, as building quality relationships with customers requires not only meeting their current requests, but also anticipating their needs at every stage of the customer journey. As practice shows, personalized sales have a higher conversion rate than selling an accessible assortment of goods for everyone, and this is where artificial intelligence can be applied. The trends in the development of the AI industry in Ukraine and the positive factors of the introduction of new financial services and products on the financial market of Ukraine are also indicated.