National Financial Security Research Articles

The Role of Financial Data Processing and Application in Strengthening National Financial Supervision

This study focuses on the role of financial data processing and application in strengthening national financial supervision. It begins by discussing the background and significance, purpose and methods of studying this topic in the digital age. The theoretical foundations of financial data processing and application are introduced in detail, including the concept and characteristics of financial data, related theories of data processing and application, and the objectives and principles of financial supervision. The current status and challenges of financial data utilization in national financial supervision are analyzed. The multifaceted role of financial data processing and application in strengthening financial supervision is explored in depth, such as improving the transparency of fiscal fund use, accurately identifying problems and risks, optimizing budget management, and improving the performance evaluation system. Strategies for using financial data analysis to strengthen budget management and performance evaluation are proposed, including establishing and improving financial data collection and management systems, using data analysis tools for budget management, and building data analysis models for performance evaluation. The importance of financial data in maintaining national financial security and stability is emphasized, including preventing financial risks and ensuring sustainable fiscal development. Experiences, lessons, and insights are summarized and enlightened through the analysis of successful and problematic cases. Finally, the study is concluded with an outlook on the future application of financial data in financial supervision, including aspects such as technological development, system construction, talent cultivation, and data sharing.

Research on the Balance Mechanism of Rights Conflict in the Cross-border Flow of Personal Financial Data

The cross-border flow of personal financial data is inevitable due to the needs of cross-border business or overseas supervision such as anti-money laundering. The conflict between national financial security and financial efficiency results in a series of unbalanced situations under cross-border financial data. The state takes measures to regulate in order to balance different demands, promote economic development, and seek economic globalization. In an unbalanced state, the lack of systematic rights protection will lead to a lack of confidence in the degree of protection of personal financial data subjects, which may hinder the construction of global economic integration. This paper first analyzes the causes of imbalance from the perspective of value orientation and makes suggestions for institutional improvement. Secondly, from the perspective of the contradictions between the subjects of personal financial data rights and processors, as well as the contradictions between regulators, it studies the feasibility methods to check and balance and resolve the conflicts, so as to achieve the goal of clarifying the basic value and coordinating the conflict relationship. It should also focus on the development of national independent artificial intelligence, science and technology to help development cooperation, and the goal of international economic integration.

Quintessence and imperatives of strengthening the financial security of the country in the conditions of the digital economy

The paper addresses the issues of strengthening Ukraine's financial security in the context of the formation of the digital economy. An overview of the main scientific approaches to interpreting the concept of 'National Financial Security' was conducted, and the author proposed a definition. The paper primarily focuses on the quintessence of strengthening the financial security of the country as a set of fundamental principles and approaches that should be implemented to ensure the stability and reliability of the domestic financial system, the creation of favorable conditions for economic development, and the protection of the country's financial interests. The imperatives of strengthening the financial security of the country in the context of digitalization were systematized, aiming to minimize threats such as cyber-attacks, financial fraud, and external risks. To mitigate these risks, the authors propose implementing measures such as the development of effective information protection technologies in the financial sphere and the introduction of a financial monitoring system to enhance the transparency of financial transactions. It has been demonstrated that the financial security of the country is a key element of its economic security, as it ensures the reliability and stability of the financial system and safeguards the financial interests of the country and its citizens. The paper also presents a set of proposals to enhance domestic financial security by enhancing the resilience of the financial system to new risks and threats associated with the digitalization of the domestic economy.

АНАЛИЗ ТЕНДЕНЦИЙ РАЗВИТИЯ РОССИЙСКОГО ФОНДОВОГО РЫНКА

The article analyzes the trends, challenges, and developmental prospects of the Russian stock market. The relevance of the study is based on the developmental trends of the Russian stock market influencing the establishment of the financial system and the provision of the national financial security of the state. The object of the study is the Russian stock market. The subject of the study is the developmental trends of the Russian stock market. The current state of the stock market has been assessed, with triggers and limiting factors determined. The main developmental trends of the Russian stock market were examined based on the conditions of international economic and financial sanctions. The article studies the prospects of modern trends in the technological development of alternative finances, affecting the prospects of Russian stock market development. Despite the negative effect of international sanctions in 2022, the authors concluded that there is an uptrend in the market capitalization of the Russian stock market in 2023. The growth is due to the transformation of the bond market and the establishment of its autonomy from global financial markets.

Approaches to quantifying the conditions of national financial security

In modern conditions, all states of the world face the problem of ensuring national security. The importance of ensuring financial security is a priority for preserving the national integrity of any State. Security as a state of protection from possible threats, in violation of which negative events occur in the external environment and internal structures. Of course, the key component of economic security is the financial security of the financial system, which affects all spheres of economic activity through monetary, commodity-monetary and financial relations. The study reveals an approach to identifying the problems of ensuring the financial security of the state and the factors influencing it. Also, through an ontological approach, the content of financial security itself is considered and attention is paid to quantifying the level of national’s financial security; indicators and their limiting quotas are selected and justified. Theoretical and methodological provisions and mechanisms for ensuring the financial security of the state are being developed.

Governance and competitiveness evaluation of China's financial asset management corporations.

With the development of non-performing assets market and the requirement of maintaining national financial security and stability, asset management corporations (AMC) have set up in recent years, facing the dilemma of governance reform and competitiveness improvement. This paper puts forward the Governance-Performance-Competitiveness theory of asset management corporations, and constructs the comprehensive competitiveness evaluation index system of based on internal and external governance mechanisms, and studies the factors and degrees of internal and external governance affecting competitiveness by combining principal component analysis method and grey correlation analysis method. The empirical results show that the asset scale and profitability of asset management corporations directly determine their competitiveness level to a large extent, and the correlation between external governance mechanism and competitiveness is stronger than that of internal governance mechanism. Clustering and grouping are conducted based on the size of competitiveness, and China's local asset management corporation system presents a diamond structure. China's local financial asset management corporations should strengthen the top-level design of internal governance, attach importance to external governance, expand and strengthen the asset scale, and carry out full-chains business while implementing a differentiated development model to achieve sustainable development when adhering to the principal business of non-performing assets.

National Financial Security: Tools for Assessment and Ways to Preserve

Introduction. The main threats to the stable economic growth of the country include the vulnerability and weakness of the national financial system, imbalance of financial interests, instability of the budget system, significant share of the shadow economy, direct investment of economic activity, and the criminalization of economic-financial relations. Therefore, financial security can be considered as the state of protection of the financial and economic interests of the state. There are different approaches to defining the content of national financial security and methods for its assessment, which reveal the dependence of sustainable economic development of the country on macroeconomic financial indicators. Methods. This article proposes a methodological approach for the integrated assessment of national financial security based on five sub-indices - financial development, economic globalization, economic activity, financial stability of households, and financial stability. This methodology is aimed at revealing the interdependence of the stable functioning of the financial sector and the level of economic growth in Russia. Results. Calculation of the aggregate index of financial security has allowed to identify a trend of financially sustainable and secure development of the country, the phases of decline of which correspond to periods of decrease in the level of economic growth. Conclusions. The proposed approach can be used as an analytical tool for forecasting national financial stability and tracking trends in the financial and banking sector, business activity, and foreign economic activity.

The impact of government budget on national financial security: a case study in Vietnam

ABSTRACT This paper aims to examine the effect of the budget balance on national financial security in the linkage of macroeconomic variables by using the VAR model approach from 1995 to 2020 in Vietnam. Moreover, the methods of Impulse Response Function (IRF) and variance decomposition (FEDV) analysis show the impact of budget balance on the financial security situation in the short run. The results indicate that budget balance has a positive effect in the short term and explains about 2.04% of Vietnam’s financial security index. Several policy implications are suggested to enhance the financial stability in Vietnam during the Covid-19 pandemic.

THE MONETARY COMPONENT IN ENSURING THE FINANCIAL SECURITY OF THE STATE

The paper studies the place and degree of the monetary component's influence on the level of financial security of the state in the conditions of political and socio-economic imbalances in the development of Ukraine. The aim of the research is to investigate the effectiveness of monetary policy instruments, to determine the level of the monetary component's impact on the financial security of the state, as well as to form perspectives for balancing the symbiosis of "monetary policy and national financial security". Based on the conducted research, it is established that in recent years the role of the financial security system formation at all levels has significantly increased, whether it is macroeconomic security, the security of economical subjects, or the financial security of a household. At the same time, the monetary component plays a significant role in ensuring the financial security of the state, namely, it affects macroeconomic processes in the country. Therefore, in order to ensure macroeconomic stability and economic growth in the context of ensuring the financial security of Ukraine under martial law, it is necessary to improve the mechanisms of monetary policy. The article analyzes the latest threats that lead to the negative impact of the monetary component on the financial security of the state. These include: the consequences of russian military aggression on the economic development of Ukraine, continued COVID-19 outbreaks, the introduction of administrative restrictions on the use of monetary policy instruments by the National bank of Ukraine, violations of the economic security of financial institutions, an insufficient level of financial inclusion, and the contradictory nature of the coordination of monetary and fiscal policies. In the context of establishing the decisive role of the monetary component in ensuring the financial security of the state, the adopted development strategies at the level of national security of Ukraine and at the level of the monetary sector of Ukraine are considered and systematized. The block diagram of the implementation of monetary policy in the context of ensuring the financial security of the state is proposed. It is proved that the mechanism of such interrelationship is implemented through the instruments and methods of monetary policy in combination with key macroeconomic indicators. To confirm the proposed hypothesis, the econometric model of the influence of monetary instruments on the level of financial security of the state is developed. As a proxy indicator of the financial security of Ukraine, the Financial Stress Index is used, which reflects the current state of the financial sector (without considering future risks) and consists of sub-indices for the banking sector, households, government and corporate securities, and foreign exchange market. Estimated and re-estimated models made it possible to determine the most influential indicators of the monetary component of the Financial Stress Index, namely: consumer price index; producer price index; GDP to monetary aggregate M2 ratio; cash to GDP ratio; share of foreign currency in monetary aggregate M3; NBU key policy rate (annual average); share of non-performing loans (NPL). The proposed model can be used to forecast the influence of the parameters of the monetary component on the level of financial security of the state.Based on the results of the study, it is proved that, despite the difficult political and economic situation in Ukraine, it is necessary to focus on improving the coordination of monetary and fiscal policies, considering the further implementation of the main provisions of international documents adopted by International Monetary Fund on this issue.

Ensuring national financial security in the context of the development of the socio-economic institute "Business StartUp" on the university partnership platform

Ensuring national financial security in the context of the development of the socio-economic institute "Business StartUp" on the university partnership platform

An assessment of Ukraine’s financial security: sectoral breakdown and general level

Financial security is characterized by the state's ability to ensure stability of the country's financial and economic development and includes the security of various economic activities and spheres of social life. The article assesses the security of the components of Ukraine’s financial sector and calculates the overall level of financial security in this country. The author considers the current mechanism for determining the level of financial security. To date, in Ukraine, the Methodology for determining the level of financial security is in force, which is approved by the Ministry of Economy based on the "Methodological recommendations for calculating the level of economic security of Ukraine" created according to a quantitative study of indicators characterizing the level of Ukraine’s overall economic security and that of financial security as its priority component. Calculated security levels of the financial sectors, namely those of the banking sector and the non-banking financial sector, as well as debt, budget, currency and monetary security. The most problematic is the debt sector whose security level averages 16.9% for the analyzed period. The overall level of financial security has a downward trend (44% in 2021). Ukraine's economy is not protected from financial threats and imbalances. The author identifies a few shortcomings in the above mentioned Methodology. As it was developed in 2013, its indicators no longer reflect the real situatioin in the country, while its methods mainly focus on analyzing financial indicators and ignore non-financial information, external factors, and the impact excerted on overall financial security by its individual components. The article points to the need to improve the mechanism of assessing the level of national financial security and provides a series of corresponding proposals.

СУЩНОСТЬ И ПРИЧИНЫ ИНФЛЯЦИОННЫХ ПРОЦЕССОВ

The inflationary component of the Russian economy requires a comprehensive and permanent analysis, due to the fact that the existing changes fully ensure the national financial security of the country. The study of inflationary processes taking place in Russia is necessary for a comprehensive study of both industrial and socio-economic processes taking place in society, since the factors causing inflation have a comprehensive impact on its level. The article examines the essence of inflation, causes, measurement methods, ways to prevent inflationary processes, the analysis of statistical data was carried out on the basis of indicators of the Federal State Statistics Service and other sources. It has been established that in modern Russia there is a tendency to increase inflation, which has a negative impact on the economic and political situation and the standard of living of the population. Most of the state’s funds will be concentrated on transactions in the field of trade and mediation, which leads to an undesirable outflow of capital, which in turn lowers the exchange rate of the ruble, undermines financial support for the state budget and increases dependence on foreign currency. As a result of rising inflation, social and political stability in Russia is deteriorating, which contributes to strengthening authoritarian tendencies. The main task facing operations to eliminate inflation is to remove “extra” money from circulation. Despite this, the population is aware of rising prices and seeks to get rid of money, thereby further filling the market with money. Inflation is a serious problem for the Russian economy and, accordingly, comprehensive measures are needed to help neutralize the negative consequences and reduce its level in order to prevent a decrease in the overall standard of living of the population both in individual regions and in the country as a whole. To combat inflation, steps must be taken to reduce government spending, improve production efficiency and increase investment.

Оцінка фінансової безпеки України: секторальний розріз та загальний рівень

Financial security is characterized by the state's ability to ensure stability of the country's financial and economic development and includes the security of various economic activities and spheres of social life. The article assesses the security of the components of Ukraine’s financial sector and calculates the overall level of financial security in this country. The author considers the current mechanism for determining the level of financial security. To date, in Ukraine, the Methodology for determining the level of financial security is in force, which is approved by the Ministry of Economy based on the "Methodological recommendations for calculating the level of economic security of Ukraine" created according to a quantitative study of indicators characterizing the level of Ukraine’s overall economic security and that of financial security as its priority component. Calculated security levels of the financial sectors, namely those of the banking sector and the non-banking financial sector, as well as debt, budget, currency and monetary security. The most problematic is the debt sector whose security level averages 16.9% for the analyzed period. The overall level of financial security has a downward trend (44% in 2021). Ukraine's economy is not protected from financial threats and imbalances. The author identifies a few shortcomings in the above mentioned Methodology. As it was developed in 2013, its indicators no longer reflect the real situatioin in the country, while its methods mainly focus on analyzing financial indicators and ignore non-financial information, external factors, and the impact excerted on overall financial security by its individual components. The article points to the need to improve the mechanism of assessing the level of national financial security and provides a series of corresponding proposals.

The process of transformation of types of money: Risks and trends

Subject. The article addresses the financial and credit policy of the State, creation of models of national economic systems functioning, financial security problems. Objectives. The study aim to establish patterns between the development of types of money, their substitutes, and industrial revolutions, reveal threats to the national financial security associated with the active introduction of digitalization into the economy. Methods. The retrospective analysis enabled to link the stages of the genesis of money with industrial revolutions. The dialectical method helped identify and systematize the most significant risks involved in the use of innovative technologies. Results. The study shows that the development of types of money as a special commodity is directly related to the achievements of scientific- technological progress and growing demands of the society. Industry 4.0, characterized by accelerated digitalization of the economy, changes technologies of the financial sector, which creates new risks that need to be identified and assessed to update the financial and credit policy. Digitalization leads to accelerated transformation in the financial sector, the role of which is very significant in crisis conditions. Conclusions. The established patterns, risks and trends are objective prerequisites for the formation of a new monetary policy and the development of the concept of Russia's economic security in the context of Industry 4.0.

Shadow economy and corruption as threats to national financial security

Shadow economy and corruption as threats to national financial security

Institutional Foundations of de-Shadowing the Economy of Ukraine in the National Financial Security System

The growth of the shadow sector of the economy of Ukraine has a considerable destabilising impact on the country’s financial sector, as a result of which increase threats, risks, challenges, and dangers to the financial security of the state, which intensify the macroeconomic and socio-political crisis. Under such conditions, the problems of justifying the institutional foundations and determining the vectors of de-shadowing the Ukrainian economy are being updated, the solution of which will ensure an optimal level of financial security of the state. The purpose of this study was to expand research on the theoretical foundations and practical recommendations on the institutional foundations of de-shadowing the Ukrainian economy in the national financial security system. The theoretical and methodological framework of this study included methods of analysis and synthesis, analogy and comparison, generalisation and systematisation, and a graphical method. The essence of the shadow economy, financial security, de-shadowing of the economy was determined and the place of the shadow economy in the system of national financial security was outlined, the influence of the shadow economy on the level of financial security of Ukraine and the dynamics of the level of the shadow economy, changes in the volume of real GDP of Ukraine, the dynamics of the level of the shadow economy of Ukraine in the context of economic activities, and the dynamics of the volume and level of official GDP created by shadow wages was analysed. The main risks, threats, challenges, and dangers of the national financial security were investigated, and it was proved that one of its biggest threats is shadow economic activity. The main vectors of economy de-shadowing were considered and improvement of methodological tools for assessing the level of the shadow economy of Ukraine was proposed. Strategic priorities of de-shadowing the Ukrainian economy in the system of ensuring financial security of the state were defined, namely the development of legal conditions for de-shadowing wages and improving the quality and efficiency of public finance management. The obtained results of the study can be used by state authorities, forming financial policy, and determining the main vectors of de-shadowing the economy of Ukraine

Роль комерційних банків у сталому фінансуванні

The market for financial instruments for sustainable finance has enormous growth potential. So far, Ukrainian banks adhere to a passive strategy in sustainable financing, which, in contrast to the active strategy, assigns banks the role of an agent in the implementation of national or international programs. Moreover, ‘green’ financing at the state level is seen as synonymous with sustainable finance. Lending to energy efficiency projects for businesses and households dominates among all areas of sustainable financing. Banks with local capital and especially state-owned banks are losing access to wholesale borrowing markets. The dependence of many Ukrainian banks on the target funds of international lenders for the development of sustainable financing weakens national financial security in the absence of large-scale national programs. It is expedient at the level of the Government of Ukraine to develop a program to intensify sustainable financing, with an emphasis on green and social impact and implementation through state banks. Sustainable financing should not exacerbate structural imbalances due to the curtailment of lending to sectors that have accumulated problems with adherence to environmental standards, social norms and corporate governance. The National Bank as a regulator and supervisor is able to act as a catalyst for the development of sustainable finance in Ukraine, with adoption of relevant standards harmonised with EU taxonomy.

The Sustainable Development Path of the Gold Exploration and Mining of the Sanshan Island-Jiaojia Belt in Laizhou Bay: A DID-SVAR Approach

Gold is a vital strategic resource, and it plays an irreplaceable role in maintaining national financial security, enhancing currency guarantee capabilities, and serving as a country’s last means of payment. Gold plays an essential role in several fields that are vital to sustainable development. In 2020, an ultra-large-scale gold deposit spanning land and sea was discovered in Sanshan Island-Jiaojia Belt, Laizhou Bay, China. Its owner, Shandong Gold Group, also established Sanshan Island as a new ecological mine model. Applying a difference in differences-structural vector autoregression (DID-SVAR) approach, our research found that the whole biodiversity of Laizhou Bay decreased by 0.27% purely due to gold exploration in Sanshan Island-Jiaojia. In the long run, gold mining will have an apparent 2.9% adverse effect on marine products, and fishing for marine products will have a 2.1% adverse effect on marine products themselves.

Current Directions of Legal Ensuring National Security

The article reveals the problematic issues for ensuring financial security in the context of globalization in global financial systems. The modern stage of development of state financial systems is characterized by difficulties in ensuring national financial security. Despite the urgency of this problem, the international community is focusing on ensuring economic security during the formation of universal and regional legal instruments, leaving out of sight issues of legal and practice-oriented guidance in financial security. The article examines the main directions of implementation of state policy aimed at improving the effectiveness of legal and national and international means to ensure financial security in the context of the globalization of growing threats to economic security. The focus is on the modernization of legal instruments to regulate public relations related to financial security. Particular attention was paid to the correlation of international legal bases, national legislation, and regional laws. It is concluded that the development of state financial policy that guarantees the security of the budgetary system is fundamental.

Digital Finance Technologies: Threats and Challenges to the Global and National Financial Security

Among the priority areas of domestic science development, the state singled out the creation and development of digital technologies, systems capable of processing large amounts of data, which will make it possible to make a significant contribution to accelerating economic growth and ensuring the country’s security (including financial security). Such directions of development have led to the appearance in society of the problems of human interaction and digitaltechnologies in the financial sphere, leading both to a change in the model of financing the economy, and to the emergence of «Cifrogenic»/»digital-genous»1 threats and challenges to society, the economy and man.Purpose: The society is faced with the dual nature of digital financial technologies, which is manifested in the fact that they are not only the basis for the development of innovative processes in the financial sector, but also a source of risks for society, the economy and people.Design/methodology/approach: The tools of systemic, structural functional and institutional approaches were used in the process of substantiation of theoretical provisions, data analysis, conclusions and recommendations that allowed analyzing and taking the complex areas of financial development of digital technology and human interaction and digital technology in the financial sector are analyzed as the studied material.A review of the literature on the selected topic has shown that relations arising in the course of human-digital interaction in the financial sphere are discussed in many papers of such scholars as Alifanova et al. (2019), Alifanova et al. (2018), Chechenov et al. (2020), Kumykov et al. (2017), Magomedov et al. (2017), Nivorozhkina et al. (2016), Smagina et al. (2017), Popkova et al. (2018), Lokova et al. (2019), Reshetnikova et al. (2019), Zmiyak et al. (2019), Reshetnikova and Magomedov, (2020).Findings: There are opportunities to form a «digital financial profile» of a person who becomes an object of advertising, marketing, sociological, political research, and ultimately can become a subject of social rating and a source of information for managing the financial behavior of a person and the country’s population as a whole. Whereas the answers to the questions of who and in whose interests controls the financial behavior of the country’s population relate to the field of national security.Originality/value: The functionality of digital technologies creates a new platform for human financial activity: supporting the adoption of credit and investment decisions, the availability of financial products and services and their personification through processing and analysis of big data, new types of investment assets resulting from blockchain technology and much more. At the same time, moving ever-increasing volumes of financial activity into virtual space, changing the format of interaction (from traditional Business-to-Customer to Peer-to-Peer and even Digital Profile-Digital profile), the emergence of Fintech companies, digitalization of the financial sector has wide range of consequences. So, financial organizations no longer interact with a person, but with his “digital profile”, with a psychological-digital portrait.