Financial Sector Of Ukraine Research Articles

THE IMPACT OF WAR ON THE INSURANCE MARKET OF UKRAINE: ANALYSIS OF OBSTACLES AND RESTRUCTURING OF THE FINANCIAL LANDSCAPE

The purpose. The aim is to analyze the condition, structure, and dynamics of the financial sector of Ukraine, identifying key trends. It also involves determining the major problems and growth opportunities for the financial sector as a significant factor affecting the national economy. Method. The study is based on the examination of statistical and empirical data from the National Bank of Ukraine, as well as the analysis of changes in regulatory acts governing financial services. Additionally, the author reviewed expert opinions on market issues related to specific entities. Using a comprehensive approach, the author was able to formulate general trends characteristic of the market as a whole. The results. This research presents the impact of martial law on the structure and dynamics of the financial sector in Ukraine, analyzes the causes of these changes, and identifies factors influencing the financial sector of Ukraine. Scientific novelty. The scientific novelty of the article lies in exploring the relationship between military-political factors and the transformation of Ukraine's financial sector. The proposed study highlights the unique experience of the impact of military-political factors on the country’s financial system, which is relevant and significant for further research and practical applications. Practical significance. The practical significance of this article is that the research results will provide analytical information to financial institutions regarding the needs and opportunities for adapting to military-political risks. This will enable them to develop more effective risk management strategies and maintain stability in conflict conditions. Studying the impact of military-political factors on the stability of Ukraine's financial system can help identify key risks and ways to strengthen the resilience of financial institutions and national infrastructure.

PROCESS OF UKRAINE'S FINANCIAL SECTOR INSTUTIONALIZATION AND ROLE OF CORPORATE SECURITIES MARKET

This article deals with the characteristics of the institutionalization process of the financial sector in Ukraine and the role of the corporate securities market in it. It is determined that the modern domestic financial sector is characterized by significant institutional imbalances, primarily due to the insufficient effectiveness of state policy in this area. For many years, banks have been the key players in the domestic financial sector, which significantly reduced the level of financial inclusion. The development of non-banking financial institutions has been fragmentary, significantly undermining public trust in the financial sector. In particular, this concerns the activities of credit unions in Ukraine, where the market volumes of private pension provision have been minimal for a long time. Some existing institutional imbalances were overcome through the rapid digitalization of certain segments of the financial market, but the overall level of financial inclusion remains low. The process of institutionalization of the domestic financial market occurred against the background of the weakness of the corporate securities market. The article notes that this situation was a consequence of the lack of interest from joint-stock companies in market methods of capital attraction. Along with this, domestic financial institutions are not interested in investing in corporate securities. Thus, the reluctance of public corporations to place their securities on the market coincides with a peculiar investment strategy of financial institutions. As a result, the volumes of the primary corporate securities market in Ukraine are minimal (especially in the stock market), and government securities dominate the secondary market for a long time. This situation poses a series of threats to Ukraine's economic development and requires appropriate actions from the state aimed at the activation of the corporate securities market. It can now be stated that domestic public corporations are non-competitive in the global financial space, which destructively affects their market positions.

Effectiveness of Legal Anti-Corruption Mechanisms in the Financial Sector

The relevance of the issue under research is determined by the growing corruption in the financial sector during the last decades. Combating corruption in this field will depend on the effectiveness of the legal anti-corruption mechanisms in the financial sector. The aim of the article is to analyse the effectiveness of legal anti-corruption mechanisms in the financial sector using the case of Ukraine and to provide recommendations for increasing such effectiveness. The factors that reduce the effectiveness of legal anti-corruption mechanisms in the financial sector of Ukraine were identified through content analysis, doctrinal approach, comparative methods, analysis of legal acts and abstract logical method. As a result of the research, directions for increasing the effectiveness of such legal mechanisms are proposed. The recommendations formulated in the work can be applied to the improvement of such mechanisms both in Ukraine and in other countries, in particular EU countries. Future research prospects may include providing recommendations for improving the effectiveness of legal anti-corruption mechanisms in the financial sector of other countries, taking into account their specifics.

Innovations and Technological Development in the Financial Sector of Ukraine: SWOT Analysis and Comparison of Opportunities

In today's conditions, the competitiveness of the economy in the long term depends on sustainable economic growth, improvement of the quality of life and welfare of the population. Achievement of such results is facilitated by the efficient use of the resource, scientific, technical, and financial potential, commercialisation of research and development, and active introduction of innovative goods and services into business practice. In this regard, there is a growing interest of the state and corporate structures in studying the experience of forming innovation systems; financing innovation activities on a global scale; and the country's transition to a new stage of development. Financing of innovation activity in the financial sector can ensure qualitative transformations in all spheres of economic life, so the relevance of this issue can hardly be overestimated. Given the critical relevance of the topic for the Ukrainian economy under martial law, the purpose of the article is to recognise the need to specify the strengths and weaknesses, as well as to diagnose the opportunities and threats to technological development of the financial sector. In order to achieve this goal, the following issues should be addressed: to outline the areas of the introduction of innovations and modern information technologies in the financial sector; to analyse statistical material on the introduction of innovations in the modern financial sector; to analyse the strengths, weaknesses, opportunities, and threats to technological and innovative development of the financial sector. As a result of the study, a statistical analysis was conducted, which showed that the modern financial sector has the potential for significant innovative development, but there are also significant risks in this area. The analysis revealed that the main risks in the area of innovative development of the financial sector are related to data protection and military operations in Ukraine. Therefore, the requirement for further development is a systemic nature and a comprehensive approach to introducing innovations in the financial sector.

СТРУКТУРНІ ЗМІНИ НА РИНКУ ФІНАНСОВИХ ПОСЛУГ УКРАЇНИ: ВПЛИВ ВІЙНИ

Purpose. The purpose of the paper is to characterize the structural changes in the financial services market caused by war and identify the main trends and mechanisms for ensuring the stability of the market under martial law in Ukraine. Design/methodology/approach. We used the data from the financial market regulators to analyze the impact of a full-scale invasion on financial institutions’ activity and operations as well as to compare the contemporary trends in different sectors of the financial market in Ukraine. Findings. Our research examines the financial landscape in 2022, revealing a marked decline in the presence of financial intermediaries, notably in insurance companies and credit unions. Concurrently, there has been a substantial reduction in the number of bank branches. The sharp decline in the number of financial institutions can be attributed to multiple factors, including some institutions operated in regions occupied by Russia, preventing continuity after the invasion, and others involved in high-risk activities facing NBU scrutiny revealing violations. The war intensified liquidity and solvency issues, with numerous failed institutions lacking a safety margin and unable to attract resources amid economic deterioration. Despite these structural shifts, the overall assets of financial institutions have not decreased. The analysis showed the redistribution of assets in favor of banks. The market share of financial companies and pension funds experienced a slight decrease, with insurers and credit unions facing more significant losses. Practical implications. The high level of digitalisation of financial services in Ukraine allowed for ensuring an adequate level of access to financial services in the first months of the war when it was critical to maintaining customer confidence in the financial sector. Accordingly, further digitisation of financial transactions and improvement of regulatory approaches to the use of digital financial instruments can be seen as priority areas for the development of Ukraine’s financia sector. Originality/value. The research is an attempt to assess the extent of the impact of critically negative external factors on the financial sector in Ukraine, in particular, to identify structural changes caused by the war. Prospects for further research are related to the study of the medium- and longterm aspects of this impact

ФУНКЦІОНУВАННЯ НЕБАНКІВСЬКИХ ФІНАНСОВИХ УСТАНОВ В УМОВАХ СУЧАСНИХ ВИКЛИКІВ

The stability and development of the country's financial sector is determined by the presence of a well-developed network of non-bank financial institutions. The latter include financial and insurance companies. The purpose of the article is to assess the activities of non-bank financial institutions, identify the advantages and disadvantages of their activities and develop proposals for improving their performance in the context of current challenges. The article analyses the current challenges facing the financial intermediary market, which require an immediate response. It presents the dynamics of the financial sector in Ukraine and analyses its changes since the beginning of the Russian aggression. It is found that the war has created additional risks for non-bank financial institutions, such as the risk of client insolvency, the risk of changes in legislation and regulation, the risk of falling asset prices, rising inflation and exchange rate depreciation. This may lead to increased losses and reduced financial stability of non-bank financial institutions, negatively affecting their liquidity and solvency. Proposals are made to improve the activities of non-bank financial institutions in the face of current challenges, in particular: the market of non-bank financial institutions should adhere to high standards of corporate governance and transparency, which will have a positive impact on the level of confidence in the market and give it an additional impetus for development; adhere to the Strategy for the Development of the Financial Sector of Ukraine until 2025, as the current military-political situation has made adjustments that need to be taken into account; the system of regulation and supervision of the non-bank sector should be improved. In market segments where there are no EU standards, national standards based on international experience will be introduced. It is noted that non-bank financial institutions should continue to actively develop their activities, improve and develop new products and services of interest to consumers. Non-bank financial institutions play a particularly important role for large companies which, due to the nature of their activities, have business contacts with many counterparties with which it is technically impossible to settle without the assistance of financial intermediaries.

Global financial cycle: Impact on Ukraine

Global financial fluctuations that arise in the financial centres – the US and the EU through international channels of monetary transmission affect the financial markets of peripheral countries, including Ukraine, where the assessment and consideration of such an impact is an important element of monetary policy. Therefore, the purpose of the article was to assess the impact of cyclical fluctuations of the global financial situation on the financial sector of Ukraine’s economy. As a result of correlation analysis, a direct relationship between leverage indicators in Ukraine and the Chicago Board Options Exchange Volatility Index and Euro Stoxx Volatility Index has been revealed. At the same time, the direct relationship between these indices and the growth of domestic credit in Ukraine contradicts the concept of the global financial cycle and may indicate the presence of more important factors of domestic credit. Correlation analysis of the volatility index of the Chicago Board Options Exchange and capital flows in Ukraine showed that in the years of increased global uncertainty and volatility, the volume of capital flows decreased, especially for portfolio debt instruments. Analysis of the cyclical components of the global and domestic credit cycle in Ukraine obtained with the Godric-Prescott filter indicates a higher level of volatility in domestic lending. The obtained value of the concordance coefficient did not make it possible to draw an unequivocal conclusion about the counter- or procyclical nature of domestic credit fluctuations relative to the global volume of loans in the non-banking sector. It has been found that the global financial cycle was not a significant factor in domestic credit in Ukraine in the studied period. The practical significance of the results lies in the fact that the National Bank of Ukraine will be able to implement a monetary policy independent of the global financial fluctuations and limit the outflow of capital during the period of growing uncertainty in the international financial markets

ARTIFICIAL INTELLIGENCE IN THE FINANCIAL SECTOR OF UKRAINE: A DRIVER OF DEVELOPMENT AND A FACTOR OF MODERNIZATION

It has been studied that the trigger of the transformation of the financial sector of Ukraine and its dynamic digitalization is artificial intelligence (AI), which plays the role of a driver of development and acts as a factor of modernization. It was established that innovations with the help of AI in the financial sector consist in the system's ability to automate data processing and calculations, which leads to acceleration, increased efficiency and expansion of financial operations. It has been established that AI can analyze large volumes of financial data, identify complex dependencies and forecast trends, facilitating strategic decision-making and management. It is noted that the use of AI in the financial sector of Ukraine allows to increase the precision of financial analysis and optimize a wide range of routine operations, which significantly reduces the time and resources of companies due to the automation of tasks, contributes to increasing the reliability of investment decisions and the efficiency of financial processes, identifying anomalies and patterns in financial data, as well as improving the cyber security system to protect against fraud and abuse. The advantages are outlined and certain shortcomings and risks that prevent the spread and use of AI in the financial sector of Ukraine are highlighted. This concerns, first of all, issues of ethics, transparency, unfair or discriminatory use of AI, as well as issues of confidentiality and protection of personal data. It was found that AI has limited capabilities in working with unstructured data and cannot always capture human emotions and context. It found that AI, despite its limitations in understanding context, is a powerful tool for Ukraine's financial sector, helping to increase the sector's competitiveness and efficiency by accelerating customer service, improving risk management and accurately forecasting economic trends.

Trends in the development of crowdfunding in the domestic business environment

The article examines the interpretation of the economic essence of crowdfunding by various scholars, its features and foreign experience of application in financing ideas and projects in various spheres of socio-economic life. In the context of globalization the opening of new markets and opportunities, intensification of capital exchange processes, the use of innovative financial solutions can have a positive impact on national competitiveness and attract small businesses and individuals with innovative ideas but do not have sufficient financial resources for their development and implementation. It is described that crowdfunding is a fundraising tool that with the help of Internet technologies allows to receive investments in a short time from a large number of people to support small or medium business projects, while crowdfunding participants are: project authors, project donors, Internet workers and the state as a regulator of these relations. The main indicators that need to be analyzed if you want to use crowdfunding as a tool of alternative financing of self-organizing economic systems, in particular are: analysis of macroeconomic indicators in the country of its application; comparison of risks of economic development and introduction of crowdfunding; creation of state measures to stimulate the economy and ensure information and financial security at all levels of crowdfunding regulation. The main models of crowdfunding that are used in world practice are described: P2P (Peer-to-Peer) for financing of individuals and P2B (Peer-to-Business) for financing of small and medium business. The main advantages and disadvantages of crowdfunding and the possibility of its application in different economies are considered. The advantages are the improvement of the project management process and increase of their efficiency through the establishment of feedback, the efficiency of which increases significantly due to the use of modern Internet technologies, which allows to transfer a significant part of project monitoring functions to investors. The disadvantage of crowdfunding is the impossibility of its application to large-scale projects that require large investments. The Strategy of the Development of the Financial Sector of Ukraine until 2025 has been studied, according to which it is envisaged to improve the regulation of the payment market infrastructure in accordance with EU standards and to create a large number of FinTech companies in Ukraine.

LEGAL REGULATION DEVELOPING REGIONAL INNOVATION CLUSTERS IN THE FINANCIAL SECTOR IN UKRAINE

The need to increase the autonomy of Ukraine’s financial system makes it advisable to undertake a series of activities aimed at consolidation of the banking system, development of the non-banking financial institution’s sector, increasing public and business confidence in the country’s financial sector. The formation of regional innovation clusters in the financial sector is seen as a major measure of improving the financial system’s condition. Therefore, the purpose of the article was to develop a system of directions for improving the legal regulation of the formation and development of regional innovation clusters in the financial sector of Ukraine. In the article, a system of indicators for determining financial clusters in the regions of Ukraine is determined using the method of expert assessments. 20 experts from the regional offices of the Ministry of Communities and Territories of Ukraine were experts. The basic methods of the research were clustering methods and Kohonen maps, on the basis of which associations (clusters) of objects (regions) by the level of innovative activity in the financial sphere of Ukraine were selected. According to the results of the Kohonen map, according to the indicators of 2018, for all administrative and territorial units of Ukraine 4 clusters were determined according to the level of innovative development of the financial sector. The feasibility of creating innovative clusters was assessed by calculating the synergistic effect, where the gross regional product (GRP) of the administrative-territorial unit was used as the resultant indicator. With the help of the production function, the priority of influence of indicators of activity of financial clusters of synergetic effect on GRP of the administrative-territorial unit was empirically established. Multivariate regression analysis was used to solve the production function in the study. Regression models for cost-effectiveness assessment have been developed to create regional innovation clusters of the financial sector in Ukraine. Economically advantageous, which brings a synergistic effect to the development of regions innovative financial clusters have been identified. The main gaps in the regulatory regulation of the formation and development of regional innovation clusters in the financial sector of Ukraine are substantiated. The system of measures for improvement of regulatory legal regulation of development of regional innovative clusters of the financial sector is substantiated and presented. The practical implementation of the results of the scientific research will help to create qualitatively new integration associations of financial and credit institutions, the purpose of which is to develop new financial instruments and new schemes for financial transactions in Ukraine.

RISK MANAGEMENT IN THE FINANCIAL SECTOR OF UKRAINE IN THE CONTEXT OF CYBER THREATS AND POST-PANDEMIC ECONOMIC RECOVERY

Purpose. The aim of the article is substantiation of approaches of domestic and foreign scientists to risk management in the financial sector of Ukraine in the context of cyber threats and the need to ensure national security and post-pandemic economic recovery. Methodology of research. General scientific and special methods of scientific research are used in the article, in particular: induction, deduction, scientific abstraction - to reveal the essence of the concepts of "cyber threat", “cyber security" and "digitalization"; statistical and graphical methods - to assess the current situation in the field of cyber defence in the world and the national cyber security index; methods of analysis and synthesis - in substantiating the conclusions of the research. Finding. Definitions of cyber risk, approaches to its interpretation and classification were considered. The importance of cyber security in the digitalization of the national economy was argued. The Strategy of Ukrainian Financial Sector Development until 2025 is analysed. The world statistics of frequency and losses due to cyber-attacks are studied and the cyber threats that caused the greatest losses in Ukraine are identified. The analysis of Ukraine’s positions in the National Cyber Security Index 2020 is carried out. The directions of cyber threat prevention that can be useful for Ukrainian companies are substantiated. Originality. The author’s definition of the term "cyber risk" is proposed, in which special attention in focused on the effects of cyber threats. The importance of cyber risk management in the conditions of inevitability of digitalization in the financial sector of Ukraine is substantiated. Approaches to the prevention of cyber-attacks, the implementation of which is necessary for the successful digital transformation of Ukraine, are proposed. Practical value. The results of the research will contribute to the formation of an effective risk management system in the financial sector of Ukraine in terms of digitalization of the financial space and post-pandemic recovery of the national economy. Key words: national security, cyber risk, cyber threat, cyber defence, digitalization, post-pandemic recovery, fintech.

ОСОБЛИВОСТІ ОЦІНКИ ДИСБАЛАНСІВ РОЗВИТКУ СУЧАСНИХ БІРЖОВИХ РИНКІВ

The development of the domestic exchange market is constrained by the imperfection of legislative and regulatory regulation of the activities of market participants, the suboptimal infrastructure of the market and the lack of a coherent, fully debugged mechanism for assessing financial instability. Stock market indices of financial stress are used as an important indicator of economic processes, they are the most acceptable tools for financial analysis in world practice, and also reflect fluctuations in supply and demand for securities and are used by investors to form an effective investment strategy. It is proposed to use the method for calculating a structured index of financial stress, which includes a set of factors and indicators as key indicators of the exchange market. The features of filling of each of the constituent elements of this index are disclosed. The indicator characterizing trigger events is separately highlighted, its relationship with stress testing is shown, which makes it possible to assess the vulnerability of the system to shocks of various nature. The presented methodology for calculating the financial stress index, including a set of individual and general financial indicators, will make it possible to respond in a timely and timely manner to periods of exacerbation of instability in the financial sector, identify threats and vulnerabilities. The article proposes a method for determining the general economic index, which is carried out by aggregating indicators of sectoral imbalances in indicators of general economic nature. The use of aggregation tools implies the fact that the excess reserve (stock) of liquidity in a particular sector is not able to balance or mitigate its lack to others. Of course, this is rational, because when trigger events occur, which implies the need for expectations, uncertainty about the credit quality of counterparties often increases. This means that financial markets cannot always provide liquidity flows. The main advantages of the proposed method of calculating the general economic index, which aggregates the indicators of sectoral imbalances in the indicators of general economic nature of modern stock markets should include the ability to prevent and prevent crises at all levels of management decisions. This system can and should become a common tool for maintaining the necessary sustainable economic processes. The highlighted features of determining the imbalances in the development of stock markets will allow to relevantly reflect the main periods of growing instability in the financial sector of Ukraine.

СТАН ФІНАНСОВОГО РИНКУ УКРАЇНИ ПІД ЧАС ПАНДЕМІЇ COVID-19 ТА РЕАЛІЇ СЬОГОДЕННЯ

In the article, it is feasible to analyze the impact of the coronavirus on the financial sector of Ukraine as of 2021. The pandemic has become a real test both for the financial market of Ukraine and for the entire economic situation of our country. In particular, the first part analyzed the impact of the pandemic on the main macroeconomic indicators of the market. We determined that during the period from sowing to May last year, Ukraine's GDP decreased by five points, which negatively affected macroeconomic indicators and the general well-being of our population. The next one analyzed the macroeconomic indicators characterizing the state of the Ukrainian market, experienced the greatest float of COVID-19. We have determined that wages have undergone a sharp cut, which has decreased by 10% over several months. The next was the analysis of the inflation index, which increased during the quarantine period in March, but since April 2020 it has begun to file, due to the end of strict quarantine restrictions. The impact of the coronavirus on the exchange rate was also studied, which in April 2020 the dollar exchange rate began to fall, but since June we have seen its rapid growth. Next, we analyzed the NBU's foreign exchange interventions, it can be seen that in July 2020 the NBU began selling foreign currency to support the national hryvnia exchange rate. In general, during the quarantine period, the NBU sold $ 1,160,000,000 in order to support the hryvnia. Enterprises in connection with punishing them with restrictions were forced to issue stocks and bonds in order to stay afloat. As a result, we can safely say that the coronavirus epidemic had a negative impact on the financial market of Ukraine and left a "black spot" on the economy of our state. It can be concluded that the situation with the pandemic does not bode well not only for the Ukrainian market, but also for the economy as a whole, and if this virus continues to develop, the hryvnia exchange rate may collapse. To date, the consequences of the infection have caused a serious disruption in the Ukrainian economy. In this situation, one can only hope that Ukrainian exports will grow in positive dynamics, which will allow our state to receive stable financial flows in foreign currency and in accordance with strengthening its own rate.

ФІНТЕХ-КОМПАНІЇ: СУЧАСНИЙ СТАН ТА ПЕРСПЕКТИВИ ВПЛИВУ НА РОЗВИТОК ФІНАНСОВОГО РИНКУ УКРАЇНИ

The article is devoted to the research of Fintech companies in Ukraine. Financial innovations created through the successful implementation of start-ups and the Fintech companies’ activities allow us to see ordinary things in a new way. Without the use of information technology in the financial sector, successful economic development is impossible in today’s conditions of total digitalization, because the implementation of innovations will ensure Ukrainian financial market development. Theoretical aspects of financial market development involving Fintech companies were studied and priority niches for the functioning of Ukrainian Fintech companies were defined. In terms of attracting investors and consumers, the most popular today are Fintech companies that offer innovative payment solutions. The Ukrainian Fintech market was analyzed separately from the point of view of the companies operating on it and peculiarities of Fintech companies’ activity were highlighted. To compare priority directions for Fintech companies, we conducted an analysis of the top 10 Fintech companies in Ukraine and in the world. Financial services are a priority for leading Fintech companies both in Ukraine and in the world. Today, banks occupy the largest share of the financial sector, offering their customers a wide range of financial services. To maintain their position in the financial market, banks are actively implementing financial innovations in their activities and using the services of Fintech companies. Neobanks are the most successful to date. In Ukraine, as well as in Europe, the course of digitalization is clearly traced. The article highlights the main directions of innovative development of the financial market of Ukraine in accordance with the “Strategy of development of the financial sector of Ukraine until 2025”, and also factors that influence the development and growth of Fintech companies in the financial market of Ukraine. The coherence of the strategy for the Ukrainian financial sector development and the strategy for the EU development testifies to the European integration tendencies of development of both Ukraine in general and its financial sector in particular. It is noted that financial innovations and successful development of Fintech companies are the basic directions for the Ukrainian financial sector development.

Potential of the sector of financial services in view of the socio-economic growth of Ukrainian regions

Nowadays, in the global economy, the sector of financial services is an important mechanism to secure competitiveness. In the first place, it performs the functions of monetary provisions; in the second place, it mobilizes and transforms spare savings into investment resources for extended economic reproduction. Yet, the socio-economic and geopolitical instability in Ukraine has caused a decline in the development of its financial sector, which is confirmed by the rating downgrade of Ukraine in a range of international economic rankings. The purpose of the paper is to provide a complex research of the capacity of the sector of financial services in securing the socio-economic growth of Ukrainian regions. In order to achieve the goal, general and specific research methods were used, including structural and functional, regression-based, factor and system analysis methods of comparison and synthesis. MS Excel was used to visualize and interpret data. The efficiency of the use of the capacity of the sector of financial services in securing the socio-economic growth of regions is evaluated based on the calculation of the related index as an arithmetic average of standardized output parameters that characterize the development of the sector of financial services and socio-economic development of regions. The research has contributed to 1) establishing a high variability of the index of the efficiency of the capacity of the sector of financial services caused by the unequal spatial distribution of the companies in the analyzed sector; 2) verifying a high sensitivity of the sector of financial services to macroeconomic imbalances, fluctuations on global financial and monetary markets, and domestic political crises confirmed by a slight impact of the sector capacity on the pace of gross regional product (GRP) change in Ukrainian regions and the gross valued added (GVA) change in the services sector of the regions; 3) stating a direct correlation between the volume of services provided by financial sector companies and financial solvency of consumers (i.e. residents and businesses), and a direct correlation between the intensity of change in the capacity of the sector of financial services in order to secure the socio-economic growth of regions and employment change in the regions. The fact that a high level of shadow activity is an essential threat to the efficient use of the capacity of the sector of financial services in order to secure the socio-economic growth of Ukrainian regions is emphasized. Unequal spatial distribution of companies within the sector of financial services, imbalance in spatial development of adjoining economy sectors, and credit activity of businesses and population have caused a high variability of the index of the efficiency of the use of the capacity of the sector of financial services in terms of the socio-economic growth in Ukrainian regions. The financial sector of Ukraine is characterized by high sensitivity to fluctuations on domestic and foreign financial and exchange markets that are especially relevant nowadays in view of the coronavirus pandemic. Therefore, forming a comprehensive roadmap activating the mechanisms to improve economic activities in the financial and adjoining markets should be the primary task for public and regional authorities.

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

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

Current trends in debt policy of city councils and directions of its improvement

The need to rethink the role of urban debt policy in accordance with the growing needs of urban communities and their sustainable socio-economic development is identified. In Ukraine, the legal preconditions for the formation of cities' own debt policy and the implementation of borrowing in both domestic and foreign nancial markets. The current state of local budgets and decentralization processes only highlight the need for cities to develop debt policy. The formation of the institution of local borrowings in Ukraine is analyzed and an in-depth analysis of borrowings of city councils in 2014-2019 is carried out with the definition of three periods: 2014-2015 - increase in borrowed funds, but such borrowings were formed mainly due to debt activity of Kyiv City Council domestic local bonds; 2016–2017 - decrease in the amount of borrowed funds, which occurred under the inÀuence of macroeconomic, political and fiscal instability; 2018-2019 - resumption of debt activity of city councils that had experience of borrowing in the previous, relatively analyzed, period and diversification of forms of local borrowing. Based on the cluster analysis, the main characteristics of the modern debt policy of city councils of Ukraine, which is based on the di൵erentiation of city councils-borrowers, are determined. The main borrower remains the Kyiv City Council (the share was about 67%), the activity of borrowings was noted in the following city councils: Zaporizhia, Dnipro, Lviv, Odessa, Ivano-Frankivsk. It is established that the debt policy of city councils is based on raising funds from NEFCO, state-owned banks and the Ministry of Finance of Ukraine. Improving the debt policy of city councils of Ukraine should be based on the synergy of actions of central government agencies: (Ministry of Finance of Ukraine, Debt Agency of Ukraine, NBU, National securities and stock market commission (NSSMC)Financial Control Ofice, etc.) and city councils. Vectors for improving the debt policy of city councils should be an integral part of the Strategy for the Development of the Financial Sector of Ukraine until 2025 and meet its key strategic goals and directions. Key words: debt policy, local debt, local borrowings, domestic local government bonds, external local government bonds, fiscal decentralization.

Тенденції розвитку небанківських фінансових установ на ринку фінансових послуг України

У сучасних умовах розвитку економіки ступінь розвитку фінансового ринку характеризується великою кількістю та різноманітністю фінансових посередників та асортиментом фінансових послуг, які вони надають учасникам ринку. Небанківські фінансові установи є професійними учасниками ринку фінансових послуг, які забезпечують спільне інвестування, управління активами, посередництво у купівлі-продажу фінансових інструментів, гарантійні операції тощо. Сучасні тенденції розвитку фінансових систем розвинених країн світу свідчать про дедалі вагомішу роль у мобілізації фінансових ресурсів саме фінансових посередників, типи і види яких визначаються рівнем розвитку фінансових відносин. Важливе місце серед фінансових посередників належить небанківським фінансовим установам, кожен вид яких відіграє свою роль, має свої функції та призначення. Наявне розмаїття небанківських фінансових установ в Україні вимагає застосування, з одного боку, специфічних підходів до їх державного регулювання, з іншого, універсальних заходів відродження і розвитку ринку фінансових послуг. Вирішення зазначеної проблеми передбачає аналіз та тенденції розвитку небанківських фінансових установ, який стане основою побудови системи порівняних показників оцінки ефективності їх діяльності, результати якої стануть інформаційною базою для прийняття ефективних рішень з метою реалізації стратегії реформування державного регулювання ринків небанківських фінансових послуг та забезпечення ефективного управління ними на рівні держави. У роботі оцінено діяльність основних небанківських фінансово-кредитних установ. Проаналізовано основні показники діяльності небанківських фінансових установ у розрізі основних сегментів сучасного ринку фінансових послуг. Визначено проблеми, які гальмують розвиток ринку страхових послуг, ринку недержавного пенсійного забезпечення та ринку ломбардного кредитування. Зроблено висновок про необхідність негайного вирішення системних проблем на ринку фінансових послуг для забезпечення його ефективного та стабільного функціонування в майбутньому.

ОСОБЛИВОСТІ ДЕРЖАВНОГО РЕГУЛЮВАННЯ СТРАХОВОГО РИНКУ УКРАЇНИ У ТРАНСФОРМАЦІЙНИХ УМОВАХ

Досліджено роль держави у процесі регулювання страхової діяльності. Здійснено аналіз сучасного стану страхового ринку, виявлено низку невирішених питань, що стримують його розвиток.Проаналізовано рівень проникнення страхування в Україні та країнах Європи, ступінь концентрації ринку страхування, рівень капіталізації. Досліджено тенденції розвитку страхового ринку в Україні та за кордоном. Наведено перешкоди розвитку страхового ринку в Україні. Охарактеризовано основні напрями реформування страхового ринку України відповідно до бачення НБУ майбутнього регулювання страхового ринку України. Розглянуто зарубіжний досвід функціонування єдиного фінансового мегарегулятора, а також особливості та можливий ефект від його впровадження на базі Національного банку в Україні. Здійснено порівняльний аналіз основних розходжень директив Solvenсy І і Solvenсy ІІ. Оцінено можливості та очікувані наслідки імплементації вимог директиви Solvency ІІ у діяльність українських страхових компаній. Наведено завдання, що стоять перед новим регулятором страхового ринку.Наголошено на важливості забезпечення прийнятного процесу виходу страхових компаній з ринку, а також доцільності створення системи гарантування виплат за договорами довгострокового страхування життя (на основі зарубіжного досвіду — використання моделі Ex-ante).

Механізм гарантування фінансової безпеки домогосподарств

Transformation processes in the financial sector of Ukraine are an objective reality of nowadays, associated with new challenges, and threats. The most vulnerable to such changes are households that are directly involved in such economic processes as the production of goods, redistribution of resources, consumption of goods produced. The purpose of the article is to increase insight into the theoretical foundations of the formation of a mechanism for guaranteeing the financial security of households. It is substantiated that the mechanism of guaranteeing the financial security of households is a set of organizational forms of financial relations aimed at creating the necessary conditions for the financial and social development of all household members. The structure of the mechanism for ensuring the financial security of households consists of methods, tools, and levers that systematically interact with each other and create favourable conditions for the life of all household members, help eliminate or minimize financial threats to their financial security. It was found that financial security enhancement of households is carried out directly by household members. But the conditions for the effective functioning of the mechanism for ensuring the financial security of households are provided by the State. Given the growing trends of the financial needs of people, their satisfaction remains one of the priorities of public policy. The directions of development of the mechanism of guaranteeing of financial security of households are offered, among which: formation of possibilities for financial resources increase; enhancement the protection of financial resources of households; increasing the financial literacy of the people; saving financial resources of the population; effective prevention of existing and potential threats.