Financial Market Of Ukraine Research Articles

The Effectiveness of Strategic Management of Banking: Statistical Assessment

The analysis in focused on the factors and tendencies at the bank services market, determining the importance and necessity of investigating the issues related with performance enhancement of commercial banks. It reveals that an underlying condition for building a well-established and effective domestic bank system is orientation on satisfying the needs of the real economy and the population in bank products and services of high quality. A study of issues related with practical implementation of the mechanism for performance enhancement of commercial banks in Ukraine becomes necessary in view of the integration of the Ukrainian financial system in the global community in the conditions of the saturated market of financial services, the increasing level of consumer demands and requirements to bank products, the strengthening competition in the bank sector, and the coming of big Western banks with high standards of services to the domestic market. All the factors with impact on the commercial bank performance should be taken into account in elaborating tools, processes and actions embedded in the mechanism for performance enhancement of banking. The main phases of strategic management are highlighted. A comparative analysis of the main strategies of the commercial banks operating on the financial market of Ukraine is made. The dynamics of indicators measuring the structure of the banks’ resource base is analyzed. The phases of strategic management of the commercial bank operation and ways of improving the performance enhancement mechanism based on client orientation are discussed. The core tendencies and dynamics of interest rates on loans are analyzed. It is emphasized that the domestic bank market is characterized by low quality and concentration of assets. The inevitable process of market consolidation will widen the opportunities for larger market agents, on the one hand, and increase the competition, on the other hand, which will have favorable effects for quality parameters of the bank system as a whole.
 Results of the analysis of the current performance of the bank sector in Ukraine enabled the author to highlight main tendencies with impact on the commercial bank performance. The financial results of the bank’s operation and its capabilities to increase investment in the domestic economy and widen the range of services to clients are largely conditional on ways, terms and costs of raised funds, and on the size of bank’s own assets and the structure of bank’s resources.

Aspects of legal regulation of the cryptuality of Ukraine and EU countries

The purpose of the paper is to determine the financial and legal nature of cryptocurrency, its characteristic features, the history of cryptocurrency on the basis of domestic and foreign scientific intelligence, current legislation of Ukraine and foreign experience. Approaches to determining the nature of cryptocurrencies are available in the world and national practice. Research methods: documentary analysis and synthesis, comparative analysis, objective truth, cognitive-analytical, etc. The author analyzes the situation of determining the legal status of cryptocurrency in foreign countries and Ukraine, and substantiates the peculiarities of the application in the world practice of three basic approaches to regulation of the cryptocurrency market. The article presents a number of practical problems that determine the need to intensify the activity of the state on the legal regulation of cryptocurrency in Ukraine. Discussion: the analysis of the developments concerning the cryptocurrency market development was carried out, which made it possible to distinguish the relevant tendencies of its development in Ukraine for the future. The necessary determinants of implementation the efficient regulation approaches to the cryptocurrencies’ transactions and the ways of legislative base formation in Ukraine are shown. To our mind, the main steps for Ukrainian financial market regulators nowadays could be recognition of cryptocurrencies as digital currencies, introduction of favorable regime of cryptocurrencies market regulation, and development of fluent approaches to the taxation of incomes generated by transactions with cryptocurrencies. The author concludes that, in the long term, blockchain technology in Ukraine can be actively used not only for IT technologies and cybersecurity, but also for data storage in the real estate trade and property registration, cadastral accounting, public administration, banking, education, medicine, trade, insurance, etc. Therefore, the author calls the issue of regulatory regulation of cryptocurrency in the territory of our country relevant and necessary, because cryptocurrency is becoming more and more popular in international practice, and its development is almost impossible and economically impractical.

ОСОБЛИВОСТІ КРЕДИТНО- ІНВЕСТИЦІЙНОЇ ДІЯЛЬНОСТІ НА ФІНАНСОВОМУ РИНКУ УКРАЇНИ

У статті розглянуто питання взаємозв’язку інвестиційної та кредитної діяльності, визначено рівнозначність відносин «емітент – інвестор» та «позичальник – кредитор». Зазначена важливість статистичного аналізу кредитно-інвестиційної діяльності для забезпечення сталого розвитку економіки та покращення інвестиційного клімату. У результаті проведеного дослідження визначено «банкоцентричність» фінансового сектору, розглянуто основні проблеми, що притаманні сучасному фінансовому ринку та перешкоджають сталому розвитку економіки в цілому і фінансовому ринку зокрема, в тому числі визначено причини гальмування розвитку кредитно-інвестиційної діяльності та сповільнення темпів зростання активів банківської системи. На основі даних НБУ, НКЦПФР та Фінмоніторингу України проведено детальний статистичний аналіз ряду показників, що характеризують динаміку економічного розвитку і розвитку фінансового сектору. З використанням методів статистичного та графічного аналізу визначено взаємозв’язок між цими показниками. Проведено кореляційних аналіз цих показників і визначено істотну кореляційну залежність між ними. З урахуванням отриманих у результаті дослідження результатів зроблено висновок про важливість дослідження питання управління ризиком боргових інструментів у межах комплексної системи ризик- менеджменту фінансових установ.

Дотримання AML/CFT стандартів у контексті реалізації інфраструктурного потенціалу фінансового ринку України

Дотримання AML/CFT стандартів у контексті реалізації інфраструктурного потенціалу фінансового ринку України

ALTERNATIVE FINANCING FOR ENTERPRISE DEVELOPMENT: THE CASE OF UKRAINE

Introduction. Enterprises at different stages of their operation and development life cycle need appropriate financial support . The article describes the alternative forms of financing, focusing on the mezzanine financing instruments (source of financing). Purpose . It aims to identify, characterize, and evaluate mezzanine financing instruments in comparison to the debt and equity financing sources. Results. Mezzanine financing represents an innovated form of financing, that is new and less popular in Ukraine. The problems of Ukrainian financial market are underlined. The article specifies the criteria of evaluation of different sources of financing including classic and innovative forms. It shows strength and weaknesses of each financing source in Ukrainian condition. The T. Saati Method is used to form the matrix of the advantages of different sources of financing. This evaluation was performed on the basis of 7 criteria. Originality . A systematic analysis using the Saati hierarchy method showed, that the most important criterion for choosing a source of financing for Ukrainian enterprises is independence in management and decision-making in the enterprise, other factors influencing the choice of financing are the size and price of the financial source. Considering a small business, that seeks to scale its business and innovate, the attractiveness of the types of financing was assessed on the basis of selected criteria. The analysis shows that traditional loan is much more popular, then other sources, but it also indicated the advantages of mezzanine financing in comparison to the other types of financing. Conclusions . Enterprise needs adequate financial support, the forms of which are currently quite diversified. Alternative sources of financing could be direct investment funds, government bonds for emigrants, that gives countries access to their migrants' funds and uses them for economic development. Among the alternative forms of financing the development of enterprises is mezzanine financing which is widespread in international activities but is practically not used in Ukraine. Ukrainian financial market can implement mezzanine activities on the basis of European experience through the creation of specialized financial institutions. This important step requires legislative changes, that are necessary to implement mezzanine financing and other alternative forms of financing of the enterprises.

IMPACT OF INNOVATIVE TECHNOLOGIES ON THE DEVELOPMENT OF CASHLESS PAYMENTS IN UKRAINE

The article summarizes the role of innovations in cashless payment market of Ukraine. According to the analysis of recent research and publications the main trends that are characteristic for the development of the world cashless payments market are highlighted. The basic generations of development of cashless payments have been displayed and the key characteristics corresponding to them have been defined. The main trends in the development of payment instruments and payment infrastructure in the domestic market during recent years are identified on the basis of statistics. Attention is paid to the number of payment terminals, active payment cards and contactless payment cards. The total share of cashless payments in the sphere of settlements is presented as well as the forecasts for the development of the Ukrainian market of electronic payments for the coming years based on the data of international statistical platform. The article provides the general overview of e-commerce sphere and payments through mobile POS-terminals. The key players of the domestic FinTech ecosystem have been identified and the introduction of innovative payment products that are developed by these players and international FinTech corporations has been analyzed. This products include such ones as: mWallet, mReward, eWallet, mGift, mRetail that are provided by Wallet Factory and MOSST Cash, MOSST Reader that are developed by MOSST company. The results of introduction of innovative product – NFC Donation Box by FinTech company Agency 21 were given as confirmation of the effectiveness of innovative technologies in cashless payments. The research describes the peculiarities of introduction of Google Pay and Apple Pay on the financial market of Ukraine. The basic problems that are inherent in the domestic sphere of cashless payments are investigated and the possible ways of their solution are suggested. During investigation amid of all problems, the attention was focused on the three major: security of payments, level of development of payment infrastructure and government support of innovative product developers. Moreover, the investigation of Visa company that describes the world problems of implementation of cashless payments in national economies are analyzed with appropriate ways of resolving these obstacles. The role of the three major economic entities such as national governments, local governments and innovative product developers in resolving problems has been carefully described and active steps that can reduce the impact of these problems in the process of building of cashless economies were highlighted. Keywords : cashless payments, payment infrastructure, innovative payment technologies, payment instruments, e-commerce, payment cards.

КЛІЄНТООРІЄНТОВАНИЙ ПІДХІД ДО ВИЗНАЧЕННЯ СТРАТЕГІЇ РОЗВИТКУ ДІЯЛЬНОСТІ ФІНАНСОВО-КРЕДИТНИХ ОРГАНІЗАЦІЙ

The article substantiates the necessity of applying a client-oriented approach to developing a strategy for developing the marketing activities of financial and credit institutions, in particular banking institutions. In today's business environment, financial institutions, like any business entity, must compete to attract potential customers, increase their financial services, and increase their profitability. The analysis of the activity of Ukrainian banks in particular showed a low level of their competitiveness in comparison with foreign banks, the number of which remains quite large in the Ukrainian financial market. The main problem of increasing the competitiveness of domestic banks is the low mobilization of financial resources of the population, economic entities, etc., and the related capitalization of banks.The main measures of raising the capital of the bank in the current conditions of development of the domestic economy are attracting deposits with capitalization of income and additional issue of shares. The only barrier to using the first method of bank capitalization today is the low level of trust of its clients - individuals and legal entities. The use of the second method - the issue of shares - is nowadays significantly limited due to the underdevelopment of the stock market and the imperfection of the legislation in force in this field. It is concluded that in the difficult conditions of functioning of the financial market and the economy of Ukraine as a whole, in defining a development strategy, it is necessary to use an approach that would maximally satisfy the needs of potential clients of banks, increase their confidence level and allow to increase the volume of using bank servicesIt is determined that the application of a client-oriented approach allows not only to increase the level of bank reliability from the point of view of clients, but also to solve the existing problem of the national economy related to the mobilization of financial resources of the population, economic entities, capitalization of banks and increase their level of competitiveness. market of financial and credit services of Ukraine.

РИЗИКИ ЕКСПАНСІЇ ІНОЗЕМНОГО КАПІТАЛУ НА ВІТЧИЗНЯНИЙ ФІНАНСОВИЙ РИНОК

Oбґрунтовано необхідність аналізу та оцінки ризиків експансії іноземного капіталу за умов приділення уваги оцінці ризиків, ураховуючи поведінкові фактори в умовах нестабільної політичної та економічної ситуації України. Розглянуто підходи до класифікації термінів «міжнародна банківська група», «іноземна банківська група» та «іноземний банк» з позиції вітчизняного законодавства і встановлено їхню відмінність. Експансію іноземних банків на фінансовий ринок України доцільно розглядати як з позиції виявлення позитивних наслідків цього процесу, так і щодо оцінки ризиків для безпеки розвитку вітчизняної банківської системи. Проведено порівняльну характеристику вітчизняних та іноземних банківських груп за показниками рентабельності та визначено розмір загального банківського ризику. Запропоновано причинно-наслідкові зв’язки виникнення ризиків експансії іноземного капіталу на вітчизняний фінансовий ринок і розглянуто ФінТех-технології як перспективний напрям співпраці між ФінТех-фірмами і банками, що сприятиме прозорості ведення діяльності іноземного і вітчизняного банківського бізнесу. Встановлено, що з метою підвищення стабільності вітчизняної фінансово-банківської системи основні сили Національного банку України повинні бути покладені на врівноваження експорту та імпорту банківських продуктів, що відобразиться на зниженні ризикованості як вітчизняних, так і іноземних банківських установ на фінансовому ринку України.

ОСОБЛИВОСТІ ЗДІЙСНЕННЯ ІРО НА ЗАРУБІЖНИХФОНДОВИХ БІРЖАХ

At the current stage of stock market development, the importance of primary public placement of shares (IPO -initialpublicoffering) is due to the dynamic changes in the macroeconomic situation. The gradual withdrawal of the Ukrainian economy from the crisis, increasing liquidity on stock exchanges provides an opportunity for Ukrainian companies to attract foreign investment through the placement of shares. By attracting funds through IPO, the company not only finances its activities, increases capital, maximizes the value of business, but also enhances its own image on the international market. Despite the political instability, the financial and banking crisis facing domestic enterprises is a question of finding investment capital for development. For modern domestic enterprises, the initial placement of securities is an alternative source of obtaining financial resources, and qualitative and timely preparation is the key to the success of the company in the field of IPO. Unfortunately, not all companies that have issued securities on foreign stock markets are working successfully and one of the reasons is the lack of detailed calculations. Given that the financial market of Ukraine as a whole and the capital market in particular are at the initial stage of development characterized by low trading activity, the lack of concentration of trade within the organized market and the speculative nature of the operations carried out, domestic issuers are forced to enter international markets of capital. In connection with this, there is a need to study the problem of choosing an optimal stock platform, taking into account financial opportunities and desirable prospects for both image and financial, for domestic business entities. The problem of capital formation of joint stock companies on foreign stock exchanges is investigated. The peculiarities of the division of foreign stock exchanges into global and regional ones, as well as the features of attracting investors' capital to Ukrainian joint stock companies through the issue and placement of shares and their derivatives are established.

Financial behavior of households and its determinants

The economic meaning of the term «financial behavior» has been researched. In this study, financial behavior is considered as a special type of economic behavior that is related to the actions of the population in the financial services market, which involves the mobilization, redistribution and investment of the population’s monetary resources. The classification of financial behavior of the population is considered. It should be classified on the basis of such features as the activity in the financial services market, the type of the result of financial behavior, the source of financial resources, the form of implementation, the instruments used in the financial services markets, the degree of risk, the propensity to innovate, the type of property of financial resources. The factors influencing financial behavior of households are analyzed, and the following types are distinguished: political, demographic, cultural, social, psychological, economic. The features of financial behavior of the population in Ukraine in comparison with other countries are determined. It has been established that the level of penetration of financial services is significantly lower than the world standards: on average, one Ukrainian has only one bank card and one current account in the bank, and the intentions of the population to save and invest are passive in nature. It is established that the greatest determinant of financial behavior, inclusiveness and literacy in Ukraine is the age and property status of financial services consumers. The problems, the solution of which will facilitate the increase of financial behavior of domestic households and their involvement in the financial market of Ukraine, are outlined. The main issues are as follows: 1) The absence of financial traditions and positive practices in financial activity in Ukraine, which is due to past historical development of the state; 2) Insufficient development of the financial market in terms of working with a private investor and limited supply of financial services to such clients; 3) Absence of the Institute of financial advisers; 4) The scope of application of compensatory mechanisms in the financial market; 5) Lack of effective tax incentives for citizen investments; 6) Low level of public confidence in financial intermediaries; 7) Disadvantages of providing market participants with the necessary financial information; 8) Low level of financial literacy of the population.

PRICE RELATIONSHIPS BETWEEN BOND MARKETS

Introduction. The strengthening of globalization processes leads to a greater integration of the domestic financial market into the global financial market, especially bond market. Ukraine is under significant influence of world economic processes. In this context the impact that has on the state of the domestic market of Ukraine our financial market, as well as the actions of American financial regulators. On the background of the formation of excessive debt structure of the global financial market, including the US market, the financial market of Ukraine in recent time, there is also the nature of the debt market which is a key financial instrument is bonds, i.e. government bonds. Not less important and of the dual influence of the two basic segments of the financial market between market shares and bonds that affects the efficiencyof capital investors. The purposeis the research of the relationships that are formed between the markets of shares and bonds on the example of financial markets of the USA and Ukraine. Results. The price relationship between the bond markets of countries with different levels of development has been considered. For the basic indicators, characterizing the main parameters of the bond market the analysis of the influence of the US bond market to the domestic market, determined correlations between the rates of return on ten-year bonds. It has been established that the time series of the rate on ten-year bonds have signs of nonstationarity. Based on the identified nonstationarity time series were analyzed for cointegration. It is determined that the modeling-level rate bonds in Ukraine can be improved by applying advanced Sapsan the value of the rate of the bonds in the United States. Conclusions. The results do not indicate the manifestation of a dependence between the value of the rates of ten-year bonds in the United States and Ukraine. Also there is no dependence between the current growth rate of bonds. A more detailed analysis also showed the absence of long-term balance between the rates of these bonds. The analysis of the interaction between equity markets and bond between them showed that the existing dual influence should be viewed through the prism of external factors that can lead to very different behavior of these markets, on the one hand they are competitors, in terms of raising capital, on the other in some periods, they are characterized by complementarity.

DIGITALIZATION OF UKRAINE FINANCIAL INSTITUTIONS AS A PLEDGE OF EFFECTIVE CREDIT

The article includes provided point of view, considering an ability of Ukrainian economy to become stronger obtaining competitive positions in differentiated markets worldwide, implementing the synergistic digital approaches in its finance and public sectors. As a main purpose of investigation, was taken a problem of credit allocation efficiency on external and internal capital markets conducting potential and alternative key patterns of processes’ development. However, historical experience of Ukrainian economy transformation attests that it might be reasonable to root advanced hi-tech into the entire economy regulation process, according to which efficient allocation of credit is to producing a chance of significant rocketing of Ukrainian macroeconomics dynamic indexes. Following an object of strictly based structure of the article, the main accents are placed on different macro statements. First of all, their static and dynamic analysis, and on the other hand, modelling probable alterations as a result of banking sector digital reshaping. Efficiency and necessity of government intervention into capital market are proven by contemporary situation modelling and probability grounded analysis of retrospective influence of actual state of economy. Macro rates such as commercial bank’s loans portfolio structure, dynamic segmental banks to households lending, current banks’ securities portfolios, BOP structure and dynamic GDP growth rates are considered. From advanced technologies side it is briefly described usage of artificial intelligence (AI) with basically-structured neural networks and the blockchain technology. Furthermore, it is examined some of relatively-new economical agents such as fin-tech start-ups and their influence onto competitive-level and essential tendencies of shaping the Ukrainian financial services market. Having used a complex analysis approach of the mentioned performances there was formed a way of discovering some logical chains of causal links of deceleration the entire Ukrainian economic reproduction. As a result of investigation and modelling it had been formed an idealistic model of Ukrainian capital market functional covering AI and blockchain implementation.

CHANGING INSTITUTIONAL DESIGN OF THE FINANCIAL SERVICES MARKET IN UKRAINE IN THE CONTEXT OF POST-CRISIS RECOVERY

The article determines the changes having taken place in institutional design and identifies trends in the recovery of the financial services market as a complex systemic phenomenon. The essence of current tendencies on the market of financial services of Ukraine as well of those in the period of crisis is revealed. Their influence on the financial system of our country is also determined. The research conducted showed that the vast majority of subjects of the Ukrainian financial services market have experienced a significant decrease. This is especially true of banks and credit unions, though the number of financial companies is growing. The growth in the number and amount of the activities of financial companies suggests that the microcredit sector is also growing. Slowing down real salary increases indicates a loss of public confidence in banks and in the future may lead to a decline in effective demand of the population. This has led to the conclusion that the credit market of Ukraine is becoming non-institutionalized. These processes have led to a concentration of capital in the credit segment of the financial services market. The decline in the number of financial institutions is not critical to the market while the growing number of non-bank financial intermediaries is considered to be a negative trend. The deep socio-political crisis has caused capital outflows from the Ukrainian stock market and the reduction in the volume of contracts at the domestic stock exchanges. This is clearly a negative trend, since the decrease in the volume of contracts on the stock market is one of the factors that affect the investment climate and reflect investors’ interest in buying securities of domestic companies. State regulation of the financial services market needs to be reformed in two stages: the first is to reduce the number of regulators to two and move to a task-based patter with the division into licensing activities and macro-prudential supervision; the second is the transition to a single regulator. This is in line with current global trends and will make government regulation of the financial services market comprehensive and systematic in order to avoiding hyper-regulation and lack of regulatory influence in certain market segments.

MODELLING OF DEPENDENCY OF THE CONSUMPTION LEVEL ON CONSUMER CREDIT

Any financial institution aims to increase its profit during lending and investment activity. In modern conditions of the Ukrainian economy banks aim to expand their credit expansion at the expense of increase of consumer crediting which thereby increases solvent demand for consumer goods and services. The latter stimulates relevant supply which encourages the increase of the GDP and the economical growth of the country as a whole. The main trends in the dynamics of consumer crediting, the income of the population and consumption level were defined in this article. Analysis of statistical data showed that from 2007 to 2017 the tendency of increasing rates of consumer credits reveals essential ups and downs. They are caused by economical and political factors, and, since 2016 there has been a sharp increase of the growth rates reflecting the attempts of the population to diminish the effects of inflation at the expense of increase of consumer credits. That is why the research of the credit expansion of the banks at the expense of consumer crediting on the financial market of Ukraine requires more detailed analysis. During the research particular attention was paid to the analysis of the dependency of the consumption level on consumer credits and the income of the population using statistical methods. It was proven that there was no linear relationship between the consumption level and consumer credits in Ukraine in the years 2007–2017. Two-factor-based econometric model of the dependency of the consumption level on consumer credits and the income of the population of Ukraine was built up and studied. High quality of the constructed model shows that it can be used for forecasting, as well as background for further analysis and optimization of the credit expansion of the banks of Ukraine.

The development of forms of institutional investment and their role in the mechanism of raising capital for the domestic economy

One of the important contemporary problems is to provide sustainable economic growth by attracting investment capital to all sectors of the national economy. According to world experience, the main role in this process belongs to the securities market. It is an important tool for the development of the national economy, as it promotes the redistribution of capital between its spheres and industries. Institutional investors as professional financial intermediaries play a decisive role in the mechanism of capital flows allocation. Collective investment institutes are large-scale financial institutions that accumulate significant amounts and manage them. The article investigates the role and importance of institutional investors as a special type of financial intermediaries in the Ukrainian financial market. Institutional investors are professional participants of the stock market and financial intermediaries between citizen’s savings and the investment needs of the domestic economy. Their mission is to promote the more effective realization of the function of transforming savings into investments. Significant amounts of free cash owned by small investors and the large needs of a real sector of the economy in free investment resources require the search for effective means of fundraising from small owners to collective investment institutions. The importance of institutional investors activity is great since they are the leading suppliers of investment resources in the country’s economy and determine the level of its economic development. The trends and results of Ukrainian institutional investors activity over the last five years is investigated in the article. From the quantitative side, the collective investment institutions are the dominant kind of institutional investors in Ukraine, and their number is constantly increasing. For the beginning of 2018, 292 asset management companies, 235 collective investment institutions, 58 non-state pension funds and 3 insurance companies with assets in AMC management were registered in Ukraine. We can see the largest increase in the value of assets in non-diversified investment funds – 146.3%. At the same time, mutual funds increased on 23.8%. However, this is not enough for the Ukrainian stock market. A small number of derivatives in circulation and low liquidity of securities restrict the activity of domestic collective investment institutes. The critical analysis of the long-term working practices of Private joint stock company «KINTO» is performed. PJSC «KINTO» is one of the most successful asset management companies on the domestic securities market. Currently, PJSC «KINTO» is an investment manager of twelve investment funds and one non-state pension fund. Asshown by analysis, the final financial results of the collective investment institutes (CII) depend on the choice of investment strategies. The features of the use of various investment strategies by CII at the stock market are investigated. It is proved that the passive-active strategy using is the most effective because of maximizing income while minimizing risks in the medium and long-term. To achieve this aim, the majority of investment funds of AMC «KINTO» forms a diversified investment portfolio based on the securities of the most investment-attractive companies of the real sector of the economy, belong to the «blue chips» of the domestic stock market. Also, the company «KINTO» uses all advantages of collective investments by applying both different trading platforms and investment instruments (instruments of stock, bond and money markets). Key words: institutional investors, net asset value, closed-end non-diversified corporate investment fund, interval diversified unit investment fund.

Financial instruments of raising household savings for investment purposes: pragmatic and analytical aspects

The article illustrates that the process of reforming Ukraine’s economy has been accompanied by an increasing interest in examining and analyzing the major instruments of household savings, as well as ways of their transformation into investment resources. Thus, the purpose of the study is to deepen the theoretical foundations and develop practical recommendations for transforming savings of national households into investment instruments on the Ukrainian financial market.It is formulated that the major instruments of household savings in Ukraine include: bank deposits, funds in the accounts of non-bank financial and credit institutions, cash money in national and foreign currencies, securities, gold, etc.It is pointed out that bank deposits, which are considered to be traditionally more popular and attractive instruments of savings for Ukrainians, not only have significant advantages, but also a number of disadvantages.The non-bank financial and credit institutions, which cooperate closely with the household sector, include credit unions, life insurance companies, and non-state pension funds. However, their activities cannot be compared with banks when it comes to raising household savings.As shown in the article, the insufficient use of such financial instruments as securities by national households is a sign of distrust towards the state and stock market institutions (only about 1-2 % of Ukrainians are willing to invest into stock market instruments).The study indicates that, since the current institutional framework is imperfect, Ukraine’s households cannot function as strategic investors of the national economy.In order to enhance these processes, state executive and administrative bodies should promote national projects aimed at improving financial condition of Ukraine’s households and strengthening their investment presence on the Ukrainian financial market.

THE FEASIBILITY AND RISKS OF INVESTING IN MODERN FINANCIAL INSTRUMENTS

Relevance of the article is that the post–crisis economic recovery and the rapid development of European integration are both – a cause and a consequence of higher investment activity, which causes the expansion of the frontiers of the use of financial instruments while increasing the their riskiness in the current economic conditions. The dynamics of sales of financial instruments used in the investment process in the financial market of Ukraine, such as stocks, corporate bonds, government bonds of Ukraine, local bonds, savings certificates, certificates of deposit of the National Bank of Ukraine, investment certificates, mortgage bonds, option certificates, derivatives. The types of risks inherent to all modern financial instruments and specifies types of risks that are specific to certain types of financial instruments are shown.The advantage of investing in certain types of financial instruments is grounded. The directions of risk reduce in exposure of investment in modern financial instruments, such as diversification (by type of instrument, the currency of a financial instrument, the countries issue a financial instrument, capitalization and sector of the issuer of financial instruments) and investment taking into account the time interval investment are offered. The main idea of the article was to prove the rationale for investing assets in financial instruments with simultaneous identification of risks that accompany this process, for finding out the ways to minimize them in the future.

IDENTIFICATION OF THREATS TO FINANCIAL INSTITUTIONS’ ECONOMIC SECURITY AS AN ELEMENT OF THE STATE FINANCIAL SECURITY REGULATION

Government structures should start financial security regulation at the macro-level with the definition of a list of threats, which impact on participants in the financial market can destabilize their activities and lead to negative trends in the financial system functioning and development. The state of financial security of a country depends on the level of economic security in its financial sector. Unstable and unprofitable work of financial institutions poses a threat to the state financial security because it means the inability to fully meet the financial interests of the population and business structures. Therefore, it is important to establish a list of factors that can have a negative impact on their economic security level. Purpose. The research objective is to establish a list of external, hybrid, and internal threats to financial institutions’ economic security for the purposes of regulating the state of financial security of the state. Methodology. For obtaining scientific results, the monographic method and the method of theoretical generalization were used in the article. On the basis of research materials of such scientists as Baranovsky O., Bovsunovsky G., Vovchenko R., Gladkikh D., Furman V., Gallagher H., Makmakhon V., Morrow R., De Oliveira I. S., Stickings A., Elliot D., Matanda E., Adrian T., Liang N. we systematized a list of hybrid and internal threats to financial institutions’ economic security. In the paper, we used analysis techniques to establish trends in the number of bank and non-bank financial institutions in Ukraine during the last four years (2014, 2015, 2016, 2017). A list of internal threats to financial intermediaries’ economic security has been generated while using information, obtained through comparing data from the survey and questionnaire of respondents – experts in the field of financial institutions economic and financial security management. Top management representatives of various types of professional financial market participants were interviewed during 2015, 2016, 2017; their answers have been analysed and the most significant threats to the normal functioning of the financial sector, and hence to the state financial security, have been identified. Results of the survey. It is established what threats to financial institutions economic security, and as a consequence, to the state financial security, can be called traditional ones. Hybrid threats to the Ukrainian financial market and its participants are systematized. The internal threats to the economic security of financial institutions are specified. Thus, the range of threats to the state financial security, the origin of which is the professional activity of economic entities in the financial market, is found out. Practical implications. Today, financial institutions are characterized by a large number of traditional and new threats to economic security, which they should learn in order to cope with because without this action their stable work will be impossible and it will also reduce the level of the country financial security. The list of threats found in the study can be used as an informational basis for the development of state strategies for ensuring the financial security of the state over the next five years. Value/originality. For the first time since gaining independence, Ukraine is experiencing a period of financial instability associated with military actions and the crisis of political power. To traditional threats to economic and financial security at the micro and macro levels, their new variations are added. They can only be detected in a timely manner by an expert in the field of security science and by a specialist in the practice field of managing a financial institution. The result of this study is a synergy of theoretical and practical specialists’ efforts towards the search for effective approaches to the regulation of the state financial security through the threat-oriented management of financial institutions.

FINANCIAL SUPPORT OF TECHNICAL AND TECHNOLOGICAL SOLUTIONS OF THE ENTERPRISE OPERATIONS MANAGEMENT

The results of financial and economic activity of the enterprises largely depend on the level of technical and technological development of their industries. Therefore, an exceptional weight is given to the solutions in the system of enterprise operations management with respect to the choice of options available for financing the implementation of new technologies and techniques (or update of existing ones), especially under conditions of a global economic crisis. Taking into account the importance of the above-mentioned economic problem we have applied analytical methods to calculate the efficiency of the use of enterprises options for financing measures of technical and technological update of their production lines by means of investments from net profit, bank loans and financial leasing. A performed analysis shows that nowadays the Ukrainian financial market offers businesses the credit resources with quite different interest rates and terms and conditions of financial leasing, which depend on the terms of financing, the purpose of new equipment, financial condition of enterprises, etc. Financial potentialities of enterprises should be considered as a priority when choosing options for financing of technical and technological solutions. The example of book printing on Sigloch Kolbus BF-511 production line has been used to justify the choice of two other above-mentioned options of financing the acquisition of equipment. For this purpose, the expenses for annual production has been calculated including commission payments and bank interest payments in one case, and cost for leasing in the other case. When attracting external funding sources the company incurs additional expenses, therefore to ensure at least a minimum profit (annual economic effect) it will be forced to increase the price of a unit on equal market conditions. Meanwhile it is important to monitor the possible growth of market prices on a book market. The efficiency of a particular variant of the funding should be confirmed by a real time calculation of economic efficiency indicators (product payback period, capital productivity rate, etc.) as changes in market of funding conditions are quite dynamic. The overall result of our research is a statement about the need for constant monitoring of financial market by the enterprises in order to select the most effective options for funding of its technical and technological solutions, taking into account their economic, organizational and managerial advantages. Future trends in the development of this area of research is the design of new approaches to evaluate the variants of financial support for technical and technological solutions of the enterprises operational management by means of economic and mathematical methods and design of high quality software.

Financial market imbalance: reasons and peculiarities of occurrence in Ukraine

Financial imbalance is the reason of a macroeconomic instability. This study aims at identifying the institutional causes of financial markets imbalance. The authors consider that financial intermediaries in Ukraine work in a speculative market segment carrying out high-risk transactions with the purpose of earning a huge profit. In fact, in Ukraine the role of these institutions in the investment process financing is insignificant. The authors show that soundness of banks along with the ease of access to loans and a low level of confidence in national banking system are the main reasons of instability in financial market in Ukraine. Due to scarcity of financial capacity and refusal to carry out transactions in a high-risk market segments, insurance companies are unable to entirely perform functions of risk redistribution. Competitiveness of Ukrainian financial market remains low with a limited financial services nomenclature and it may be considered to be attractive for potential foreign investors.