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In modern conditions of the unpredictability of changes in the economic environment, ensuring the continuity of management of agrarian enterprises requires adequate awareness of the need to choose strategic vectors of their development based on the application of analytical tools for risk assessment. The article discloses the prerequisites for the development of methodological support for comprehensive risk analysis and substantiates the scenarios for choosing the financial strategy of agrarian enterprises in conditions of uncertainty of changes in the economic environment. The purpose of the study is to substantiate the theoretical and methodological principles of comprehensive risk analysis as a tool for choosing a financial strategy for the development of agricultural enterprises in conditions of uncertainty, which is solved through the study of the prerequisites for assessing the risks of the activities of agricultural enterprises in conditions of uncertainty, etc. In order to form an information platform, regarding the assessment of the consequences of risk events, for the selection of financial strategy vectors, a coordinated system of risk indicators has been built. The impact of internal and external environmental factors on the risks of agricultural enterprises has been identified. For the ranking of strategic alternatives for the development of enterprises, a sequence of assessing the risk of reducing the profitability of enterprises is proposed. Procedures for scenario analysis of trends in expected financial indicators are substantiated. As a generalizing indicator of choosing a financial strategy for the development of enterprises, an indicator of market value, adjusted for risk factors and financial stability potential reserves, is proposed. The practice of using analytical methods of risk assessment when choosing a financial strategy is demonstrated in the example of the activities of domestic agricultural holdings LLC "Kernel-Trade", PJSC "MHP", JSC "Astarta-Kyiv" for the years 2018-2022. [ABSTRACT FROM AUTHOR]

The article is devoted to the analysis of the evolution of the functions of the National Bank of Ukraine for the period 1991-2023. The author's definition of the functions of the National Bank of Ukraine as its main directions and types of activities aimed at ensuring the stability of the monetary unit, protecting the rights and interests of the National Bank and the rights of consumers of financial services, etc. It was established that the scope of functions of the National Bank of Ukraine includes: establishment, security, foreign policy, foreign economic, human rights protection, anti-corruption, programmatic, law-making, control, and personnel. It has been proven that the functions of the National Bank of Ukraine are not exhaustive. The research methodology is formed within the framework of the use of economic and legal approaches. It is appropriate to analyze the base scenario of the macroeconomic forecast of the National Bank of Ukraine based on assumptions regarding further weighted monetary and fiscal policy and a wide range of economic and financial data used by the National Bank of Ukraine in the development of its monetary policy and control over its implementation. It is substantiated that when classifying the functions of the National Bank of Ukraine according to the criterion of the direction of its activities, it is necessary to take into account the dual nature of the National Bank of Ukraine: it is at the same time the central bank of Ukraine and a special central body of state administration. The factors that influenced the assignment of new functions to the National Bank of Ukraine and the exclusion of previously existing ones were determined. It is proved that during 1991- 2023 the functions of the National Bank of Ukraine were expanded based on the principle of "prerogatives" and "inalienable rights". [ABSTRACT FROM AUTHOR]

Full-scale hostilities have had a significant impact on the budget system due to increased spending on defense, reconstruction, and humanitarian assistance to vulnerable groups, which has affected the accumulation of budgetary resources. The article examines the impact of extraordinary challenges and threats on the national budget system, in particular, on the structure and volume of budget revenues and expenditures, the growth of the budget deficit and public debt, changes in regulation in the field of public finance, and the potential of financial capabilities of the regions. The purpose of the article is to make a scientific and practical assessment of the problematic aspects related to the transformation of the budget system, to outline the ways of attracting financial resources that can be used for the purpose of distribution and redistribution to perform the functions of the State, to identify the main areas of influence of emergency challenges and threats on the budget system of Ukraine and the priority areas and measures of budget policy in wartime. The authors conclude that the strategic and main directions of Ukraine's development need to be improved in the strategy of public finance management and financial and economic security as part of the implementation of the Memorandum of Economic and Financial Policies by the IMF. At the same time, the relevant legislative changes to the state budget for 2023 that meet the needs of Ukraine are studied, and the implementation of the first preparatory stage for the development of the National Revenue Strategy is analyzed. The authors emphasize the positive impact of decentralization on local self-government and the financial sustainability of local budgets. It is proposed to empower communities through monitoring the implementation of local budgets. In the context of defense needs, the possibility of including defense expenditures during martial law in local budgets is considered. [ABSTRACT FROM AUTHOR]

The introduction of martial law will significantly change the modern vision of the formation of state policy to ensure financial and economic security. Today, more than ever, intensifying ways to strengthen the financial and economic security of the state is becoming priority number one. The purpose of the article is to present a modern approach to determining strategic priorities for the formation of state policy to ensure financial and economic security in conditions of martial law, which, unlike similar ones, should be characterized by the use of modern modelling methods that form the basis for developing an effective policy under current conditions, taking into account a significant number factors and variables The object of the study is the state policy of ensuring the financial and economic security of Ukraine. The research methodology involves the use of both theoretical and mathematical methods, which made it possible to form a modern model for determining strategic priorities for building an effective state policy to ensure financial and economic security. As a result, we presented not only the most modern model thanks to effective modelling methods but also what needs to be done today, to understand what strategic decisions should be made in order to form the most effective government policy to ensure financial and economic security in war conditions. condition. The study has a limitation in the form of not taking into account all possible variables and factors influencing the formation of state policy to ensure financial and economic security. Prospects for further research are to explore ensuring the financial and economic security of the state at the tactical operational level. [ABSTRACT FROM AUTHOR]

Neglect of marketing tools and the lack of a clear strategic guideline when promoting a product create negative consequences for most industrial enterprises in Ukraine, which raises the issue of demonstrating how a successful marketing strategy can significantly affect the finances of such open socio-economic systems. The main purpose of the article is to present an approach to reflect the positive financial consequences in the activities of an enterprise from a successfully implemented marketing strategy in the industrial products market. The object of the study is the activities of industrial enterprises. The scientific task is to show what positive impact the implementation of a successful marketing strategy has on the financial aspects of the activities of an industrial enterprise. The research methodology involves a combined approach in the use of general theoretical methods and mathematical and econometric methods to form models and solve problems. The main result of the study is the formed model of the impact of the implementation of a successful marketing strategy on the activities of the enterprise. This model focuses on the financial aspects of activity and is distinguished by the fact that it demonstrates the financial effect for industrial enterprises of a successful marketing strategy. The practical value of the results obtained is revealed in the presentation of the significance of the marketing strategy for improving the financial performance of industrial enterprises. The study has a limitation and does not take into account the process of forming a marketing strategy itself, but only its implementation. [ABSTRACT FROM AUTHOR]

In the conditions of great turbulence in the national financial market, caused first by the coronavirus and later by the Russian invasion, a particularly important task today is the stable functioning of the banking system, which is the lifeblood of the economy. In this context, an important task is to accumulate the efforts of the National Bank and commercial banks to improve the system of anti-crisis measures to ensure the stable operation of the banking sector and the economy in general. The article is devoted to the development of methodological tools for anti-crisis management in the banking sector of the domestic economy. For this purpose, a model of anti-crisis management in the banking sector of the Ukrainian economy is proposed, which is based on forecasting the sustainable development of the banking sector by distinguishing its three main states: unbalanced, minimally organized and maximally organized. The three-dimensional model of anti-crisis management in the banking sector makes it possible to clearly show the cyclical nature of its development. The study identified and substantiated the main directions of optimization of development and regulation of internal factors of stability of the banking sector of Ukraine. A structural and logical diagram of the anti-crisis management model is proposed, which provides for the implementation of measures of anti-crisis regulation of the banking sector by performing a certain sequence of management actions. The article also defines tasks aimed at implementing a program of measures to increase the competitiveness of the banking sector of Ukraine. The considered measures for maintaining stability and ensuring stable functioning of the banking sector and increasing trust in it are the most important prerequisites for financial and macroeconomic stabilization. [ABSTRACT FROM AUTHOR]

The main components of the infrastructure are considered: education, housing and communal services, communication, medical, transport, recreation system, ecology, social security, and culture. The infrastructure of the regions was analyzed and the main disproportions of development and the shortcomings of inappropriate distribution and an attempt to use the allocated investments were revealed based on the integral index. The author's own definition of the essence of the concept of «infrastructure» is provided. Much attention is paid to the analysis of the development strategy of the financial infrastructure of Ukraine in the pre-war period. It has been proven that at this stage a number of reforms were carried out, which contributed to the stabilization of the banking system, the financial sector, changes in the standards of the corporate sector, an efficient and developed infrastructure of the capital markets and commodity markets, the recovery of credit activity of banks and non-bank financial institutions, an increase in the volume of non-cash transactions, expanding the list of remote financial transactions, protecting the rights of consumers of financial services, increasing competition in the banking and non-banking financial markets. An сomparative analysis of the allocation of investments from the state budget for the development of the infrastructure of the USA and Ukraine was carried out. A strategy for the development of Ukraine's infrastructure is proposed, which will contribute to financial stability. [ABSTRACT FROM AUTHOR]

With the invasion of russian troops on the territory of Ukraine, the NBU faced the task of preventing the depreciation of the national currency, avoiding panic, and ensuring the stability of the banking system. This was achieved, in particular, due to anti-crisis monetary measures. The regulator was promptly making the necessary decisions, the review of which and the assessment of their effectiveness in the paradigm of the economy of war this study is devoted to. The set of tools of anti-crisis monetary management, prerequisites, factors and features of their application in the conditions of a fullscale military invasion are reviewed. A comparative-dynamic analysis of the main monetary indicators was conducted, which showed their manageability and relative stability. It’s proved that the main inflationary trend in Ukraine is characterized by uncertainty, formed under the influence of non-monetary factors of a subjective nature, which are outside the influence of monetary policy. These and other non-market factors provoked a reduction in international reserves and instability in the foreign exchange market. NBU reacted by introducing pre-emptive currency restrictions. It was determined that in order to avoid panic in the foreign exchange market, the NBU made such important and prompt decisions as fixing the exchange rate, introducing the necessary restrictions on the purchase of foreign currency and cross-border currency transactions, restricting withdrawal of funds from foreign currency accounts, providing the possibility of exchanging cash hryvnias abroad. To avoid uncontrolled devaluation and capital outflow, the NBU supported the foreign exchange market with interventions. Anti-crisis measures aimed at maintaining the liquidity of the banking system were analysed, including operations with certificates of deposit and government bonds, which in the conditions of martial law don't always achieve the goals of ensuring financial stability. These and other measures helped the regulator maintain the banking system's overall stability and uninterrupted operation. [ABSTRACT FROM AUTHOR]

The effective functioning of the financial and credit mechanism for the activation of leasing activity in Ukraine is important for increasing the number and quality of leasing operations, as well as improving leasing activity in general. In this context, the methods of assessing the financial stability of the Fund for Financing Leasing Operations become particularly relevant and important as an important element of the system of functioning of such a mechanism, which at the same time is a set of multiple sources of financing of the leasing portfolio of the lessor or financial company engaged in the provision of financial leasing. This article is devoted to this issue, in which, with the help of economic and mathematical modelling, an assessment of the probability of default of the Fund for Financing Leasing Operations was carried out due to the growth of the ratio of financial leverage and taking into account the action of a number of economic and financial factors, and it was determined that the most stable form of financing leasing operations is loan capital. It is proposed to estimate the probability of the event of default of the Fund for financing leasing using the method of building Bayesian logistic models with a normal type of conditional probability distribution. The study found that the expected macroeconomic situation and low inflation environment are necessary factors for the sustainability of the Fund for Financing Leasing Operations. It was emphasized that a significant role is played by state support in the financing of leasing projects and reasonable opposition to competition from competitive technologies of the Fintech sector. The obtained results can be used for evaluating the efficiency of lessors' portfolios and making decisions regarding the selection of optimal sources of financing for leasing operations. [ABSTRACT FROM AUTHOR]

The article presents an approach to the corporation's capital structure management based on the criterion of maximizing the return on equity (ROE). The basis of this approach is the determination of the expediency of attracting borrowed resources from the point of view of balancing financial risk and profitability. The toolkit for optimizing the capital structure of the corporation is substantiated, taking into account the indicator of financial leverage, which ensures the most effective proportionality between profitability and financial stability. An algorithm for determining the level of financial risk in the structure of the interest rate for attracting borrowed resources has been developed, which involves the formation of the amount of the premium for the risk of insolvency of the borrower and the corresponding methodology for determining the position of the borrower on the scale "financial stability–solvency–financial risk". The post-optimization multifactor sensitivity analysis of the proposed capital structure optimization model made it possible to establish certain patterns regarding changes in ROE and its components. [ABSTRACT FROM AUTHOR]

Banks of Ukraine in the conditions of martial law demonstrated rather contradictory, but mostly positive results. Despite significant economic and infrastructural losses, the banking system has preserved its integrity and reliably fulfils existing obligations, conducts settlements, and continues to attract customer deposits, but has switched to a conservative (zero) growth of loan portfolios, except for programs supported by the state, has slowed down the issuance of new loans due to high credit risks, and also postponed the implementation of plans to reduce the share of the public sector. The article presents a generalized description of the main components of the systemic risk of instability of the banking system based on a structural and functional analysis of its elements according to the official reports of the NBU for 2022 and previous years, as well as the prospects for its further development. It was determined that by the end of 2022, the banking system of Ukraine maintains an acceptable level of operational stability, excessive liquidity and tries to minimize the factors of credit, operational and currency risks. In the second half of 2022, credit risks began to materialize, which was manifested in the growth of defaults. Based on this, it was concluded that one of the important directions of the regulatory policy of the NBU should be the development of incentives for the quantitative and qualitative improvement of the financial base of the banking system. In particular, it is proposed to stimulate the growth of the funding, dominantly from the domestic market, and therefore to the levelling of currency and credit risk, as well as to the improvement of the effectiveness of the monetary policy. To ensure lending activity, it is advisable to develop lending support for ESG goals for diversification of energy production, housing and infrastructure construction. [ABSTRACT FROM AUTHOR]

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The paper deals with the analysis of the banking system of Ukraine. It is shown that for Ukraine the frequency and depth of crisis phenomena in the banking sector are exacerbated by the raw material orientation of the economy, underdeveloped domestic market and the circulation of foreign currency (dollarization of the economy). It should be noted that in the pre-crisis during 2006-2007, excessive mortgage lending created a "bubble" in the real estate market, which, comparing its devastating effects, corresponded to this phenomenon in the real estate market in the United States. Although the crisis of 2008- 2009 demonstrated the vulnerability of the Ukrainian banking system to numerous economic and political upheavals, no significant changes in banking supervision took place to minimize systemic risks. Restoration of the banking system of Ukraine in 2015-2016 is generally in line with post-crisis trends to streamline the banking system and increase its efficiency in the world. At the same time, the weakness of the institutional environment makes it impossible to use both administrative tools and state development banks to increase productive lending in Ukraine. On the other hand, commercial banks will use refinancing loans instead of private-sector savings to lend. In this case, the probability of the need for financial support from banks increases, which will lead to a significant increase in public debt. Moreover, a system of vector autoregression models has been developed to research the impact of crisis periods on the performance of commercial banks in Ukraine. The simulation results (mainly the analysis of impulse response functions) allow concluding that interbank lending in post-crisis conditions recovers relatively rapidly (with a lag of two years). Lending to non-financial corporations and non-residents showed a decline and recovery only within four years after the crisis. Lending to the general government sector is growing every year, but at the same time loans to other resident sectors are declining. In addition, during the year after the crisis, the volume of deposits in the banking system is demonstrating a decrease. Other variables do not show any response to the crisis. [ABSTRACT FROM AUTHOR]

The paper develops and substantiates the methods for formation and calculation of financial indicators of educational services commercialization to be applied in Ukrainian higher education agrarian institutions to assess their financial stability and competitiveness level. The model of the institution competitiveness criteria dependence on the influence factors was offered and the list of additional services which can be commercialized was drawn up. The international and domestic experience in institutions financing sources was analyzed along with financial indicators considering education level for different countries, formation of modern methods and sources of Ukrainian higher education agrarian institutions, general and special funds income and expenditure sources including R&D funding, factors influencing the competitiveness level. The dynamics of changes in revenues from educational services in Ukrainian higher education agrarian institutions in 2019—2021 by funding sources based on the data of their estimates was determined. The results of commercialization financial indicators calculations were given in the paper. General scientific methods were applied during the research including empirical level methods (calculation, comparison), theoretical level (analysis, generalization, modeling); data from literature sources; data on the staff salary fund, data on revenues from educational services and data on expenditures on educational services from various sources of funding for agrarian institutions. Factors influencing the competitiveness level were identified. These include sources of funding, educational services quality, innovative development, human resources, international activities, cooperation with employers, branding, additional services. The main criteria of competitiveness such as image (reputation) of the institution, financial stability, contingent, number of employees in the specialty were established. A system of indicators that determine the level of higher education agrarian institution stability was drawn up. [ABSTRACT FROM AUTHOR]

The article synthesizes methodological approaches to assessing the financial stability of universities, identifies ambiguity in the choice of evaluation indicators. Approaches to understanding and assessing financial stability are identified: strategic, according to which financial stability is achieved through the ability of universities to diversify revenues, expand their own sources of funding, optimize costs, reduce dependence on public funding by making flexible financial decisions; current, which characterizes the ability of universities to balance revenues and expenditures, maintain a sufficient level of solvency and create a positive current financial space. Conceptual tools of financial stability of universities based on an integrated approach are formulated. The peculiarities of the influence of the sectoral aspect of the university activity and the corresponding potential of income formation on its financial stability are investigated. The results of the study are based on a sectoral approach to the distribution of universities (classical, technical, and economic), due to the specifics of contingent formation in relevant specialties, public financing priorities, their competitiveness in the market of educational services, the ability of universities to diversify and expand their funding. The assessment of financial stability is carried out in terms of the income approach, the ability of universities to generate income, cover costs and create a positive financial space. Technical and classical universities have the highest share of public funding due to priority specialties according to the government policy. Today the tuition fee at Ukrainian universities is much lower compared to public funding, so the growing share of fee-paying students does not have a positive effect on the financial stability of universities. According to the results of the analysis, it was found that the net financial results of universities do not depend on the sectoral and regional affiliation, status, size of the university. However, the ability to make effective financial decisions within the autonomy of universities, balance income and expenditure, form a sound financial structure, find additional sources of income to meet current and strategic financial obligations of the university are the preconditions for financial stability of universities. [ABSTRACT FROM AUTHOR]

The scientific article is devoted to the development of a methodology for assessing the financial stability of financial corporations using the technology of cascading approach to identify weak areas in their activities and prevent the development of threats to their stable operation. The root causes of their financial instability are selected as the object of financial corporations’ financial stability assessment, and a chain of causal relationships is considered that turn the preconditions into real threats to financial stability or even signs of the corporation’s financial fragility. At the same time, the source of prerequisites for the financial stability of financial corporations in the state and depth of imbalances, which are formed both in the internal and external environment of their operation. It is proved that the tools for assessing internal imbalances in the activities of financial corporations should not be limited to financial imbalances, as their root causes can be concentrated in the organizational, managerial, institutional, conceptual component, in the field of personnel, information, technical support. Therefore, the structuring of imbalances in the activities of financial corporations is proposed to be carried out according to the theory of economic potentials and to identify the following content areas: opportunities, resources, tools, and abilities, the interaction of which forms the potential of financial corporations to operate. A three-stage method for assessing the financial stability of financial corporations has been developed, using a cascading approach, which involves the consistent diagnosis of internal imbalances in the activities of financial corporations: 1) those that arise within each component (resources, means, and capabilities) and are the area of origin of internal threats to their financial stability; 2) imbalances that arise through inter-component interaction (resources-means; abilities-means; resources-abilities) and are the sphere of manifestations of imbalances; 3) those that arise through interaction with the external environment and maximally show the impact of their condition and depth on the level of financial stability. For each of these areas, a set of indicators has been developed and an algorithm for calculating the integrated index of financial stability of a financial corporation has been constructed. The scientific and methodological approach was tested on the example of systemically important banks of Ukraine during 2017—2020, each of which is currently in a continuum of financial stability, and for most banks, there is a growing trend of quantitative measurement of its level. In general, the paper reveals a comprehensive approach to assessing the financial stability of financial corporations, which allows you to systematize those key positions in which the imbalance increases the likelihood of their financial fragility and financial instability. [ABSTRACT FROM AUTHOR]

The article presents the results of the analysis of the functions of National Bank of Ukraine and the Bank of England through the prism of the challenges imposed by the dynamic nature of the society and globalization processes. The article highlights the different approach used by two different countries (Ukraine and the U.K.) while implementing the same provisions of the Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 On payment services in the international market into the domestic law. By the research it is proved that in order to guarantee the financial stability and at the same time provide the function of a supervisor, the central bank of a particular country does not need to have unlimited discretionary powers. In lieu of that, balanced system consisting of a range of fully and or partially independent from each other financial institutions and authorities shall cooperate and co-function under understandable and transparent rules. The article partly underlines the dichotomy between the principles set by the European requirements in particular by the Directive (EU) 2015/2366 and the way in which the same is being implemented in Ukraine. The Bill «On payment services» No 4364 dated 12.11.2020 contains the provisions empowering the National Bank of Ukraine to act as a regulator and supervisor of financial payments market and simultaneously as a participant on the same market. Moreover, the broad discretionary powers of the central bank in Ukraine entails also some legislative functions. Such broad and even discriminatory powers which the National Bank of Ukraine might have are not in line with the European principles in particular and the rule of the separation of powers in general. The distinction between the functions of the monetary regulator and supervisor of the financial payment institutions which the different institutions have in the UK proves that it is possible to reach a balance and to equilibrate the influence of the Central Bank and the Ministry of Finance and their relevant subordinate bodies in order to protect the financial stability and the sound state of the economy of the country. [ABSTRACT FROM AUTHOR]

The heart of any market economy is its circulatory system. The complex of credit and banking institutions that serve their viability of structures (infrastructural elements), is a fullfledged banking system of the country. Modern dynamic processes of globalization of financial markets due to the acceleration of the free movement of capital, in addition to a positive impact on the development of national financial systems, create conditions for the spread of crisis trends, including contributing to the manifestation of the chain of «infection effect» of banking systems in the international financial space. A system of economic and legal support for the financial stability of the banking system has been developed. The feasibility of creating and achieving the effectiveness of which in modern conditions is due to the need to reboot the domestic banking system to solve existing internal financial problems and transform it in accordance with the European-oriented vector of development of the country’s economy. The existing system provides for the financial stability of the banking system at two levels: at the macro level — the banking system as an object with systemic properties; micro-level — banks as structural elements of the banking system. The study of the features of the formation of a system of economic and legal support for the financial stability of the banking system. The main task was to optimize the main elements of the system of economic and legal support for the financial stability of the banking system. The main goal of the study is to form a system of economic and legal support for the financial stability of the banking system. A methodology for structuring system elements was applied. Building an information model allows you to structure the elements of the system of economic and legal support for the financial stability of the banking system, see their relationship, highlight the main and secondary ones. [ABSTRACT FROM AUTHOR]

The article summarizes arguments and counterarguments within the framework of a scientific discussion concerning the methodological ensuring for assessing the financial stability of insurance companies. The main purpose of the conducted study is indexes arrangement by which it is possible to assess the financial stability of an insurance company in accordance with the criteria (factors, sources) of its ensuring. Systematization of literary sources and approaches for solving the problem in managing the financial stability of an insurance company to ensure its stable development has shown that this issue remains unresolved to the full extent and requires detailing and indexes arrangement that can be used to assess the financial stability and determine its level. Actuality in solution of this scientific problem lies in the fact that financial stability of insurance companies is an important precondition for their survival in modern conditions, a factor of providing the insurance protection and maintaining the achieved standard of living of the population, full and timely performance of insurance obligations, effective and competitive functioning of the insurer in the future. In the article studies on the management of the financial stability of an insurance company on the basis of indexes arrangement of its assessment are performed in the following logical sequence: characteristic of the main tendencies in the development of the insurance market of Ukraine in recent years is outlined; the necessity of management of the financial stability of insurance companies is grounded in order to ensure their sustainable economic development; approaches to the definition in the essence of the financial stability of an insurance company are considered and the definition by Ukrainian researcher N. V. Tkachenko is adopted as the basis. On the basis of the analysis of recent scientific publications, theoretical and methodological developments by modern researchers, the authors of the article selected six groups of criteria for ensuring the financial stability, according to which the ratios for assessing the financial stability of insurance companies of these participants in financial markets are systematized and methodologically substantiated. The results of the research can be useful for managers and staff of insurance organizations, government oversight of insurance activities, teachers of economic specialties. [ABSTRACT FROM AUTHOR]

Recently, we heard much more about digitalization and related processes around the world. In other words, digitalization is already an important part of modern trends. The main aspects of digitalization, digital transformation and its impact on the financial services of the banks have been discussed and analyzed in this article. Along with the effect of digitalization on everyone’s life, the influence on financial services of the banks and on their businesses are also important. It is noted that banks need to make changes in their approaches to financial services, business models and strategies in accordance with the new requirements. The paper also focuses on the start of a new digital age in financial markets and the need for the regulator to adopt a new approach over the course of its existence. Formation of the reality of regulators working with wider companies and areas, the need to analyze the larger databases, the importance of extensive use of digital opportunities for more effective run of their functions have been examined. It is stated that the supervisors should be interested in technological development, take the leadership in its application, have to consider possible development trends, new regulations with financial institutions, as well as large bigtech companies. In this regard, the measures taken by the European regulatory authorities, innovations have been analyzed, as well. Emphasizing the importance of defining a common framework approach by the ECB, aspects of the policy set by national regulators within that framework are examined. The obvious positive advantages of new technological solutions application are also discussed. Thus, possibility of modern technological development to create a fertile ground for concealing a number of criminal acts, such as money laundering, terrorism, fraud and tax evasion is noted. [ABSTRACT FROM AUTHOR]

The article is devoted to the development of methodological approaches to assessing the level of financial stability of banks in the system of their financial recovery based on the use of an integrated approach. The paper substantiates the principles of evaluating the effectiveness of the financial recovery system, and proves that it should be based on indicators of financial stability, business activity, liquidity, management efficiency, as well as indicators, the negative value of which can lead to insolvency of a banking institution. The complexity of the internal structure of the proposed integrated indicator of the level of financial stability of the banking system allows to identify weak areas in its functioning and vector to direct the actions of the regulator for timely reorganization or effective management in the financial recovery of banks. [ABSTRACT FROM AUTHOR]

The paper analyzes the evolution of the introduction of international standards for bank capital regulation. The aim of the research is to study international standards for bank capital regulation and their impact on financial stability and sustainability of domestic banking systems. The 2007—2009 Global Financial Crisis was perhaps the greatest banking and financial crisis since bank failures and the financial panic of the Great Depression in early 1930s. According to academics and professionals, there has been much debate over the last decade as to whether the 2007—2009 banking crisis was primarily a solvency crisis or a liquidity crisis. Capital adequacy of banks today is the main indicator of increasing society’s confidence in banking systems. The flexible and balanced implementation of Basel Committee on Banking Supervision (BCBS) recommendations on the assessment of bank capital adequacy is of particular importance in the context of the deepening economic crisis caused by COVID-19 quarantine restrictions. Regulation of bank capital is primarily settles by the ability to execute basic functions inherent in it. A number of shocks in connection with the crisis require the renewal and search for a new paradigm of regulation, which today is focused on achieving financial stability, overcoming pro-cyclicality, especially in the banking sector. One of the latest developments in the field of bank capital regulation has been the implementation of international banking supervision standards recommended by BCBS, which have been transformed from Basel I, Basel II, Basel III, Basel 3.5 to Basel IV. The new ideology suggests that in times of financial and economic crisis or in anticipation of growing uncertainty in the economy, it is necessary to abandon the idea of bank capital management and the creation of financial reserves to maintain liquidity and stability of financial institutions. These measures will not be able to protect the bank from default and bankruptcy. This ideology has become a new paradigm of effective banking regulation, which can be formulated as an accepted set of three vectors: risk; risk management; risk-oriented supervision. [ABSTRACT FROM AUTHOR]

This paper identifies the main tasks for solving the problem of creating an effective pension system in Ukraine. The macroeconomic, social-labor and demographic factors of development of the pension system of Ukraine are considered. Based on the operating consolidated budget data of the Pension Fund of Ukraine, it is proven a financial imbalance, which is covered by subsidies from the state budget. A critical analysis of the dynamics of the Pension Fund of Ukraine revenues and expenditures has been carried out. Based on the statistics of the Cabinet of Ministers and the Pension Fund of Ukraine, the growth rates of the average wage, the average pension, the number of pension tax payers and the number of pensioners have been calculated. The advantages and disadvantages of the increase in the indicators of the balance of the pension system are characterized. The example that confirms the unfairness of the approach to the calculation of pension payments to workers and self-employed individuals is presented. The main criteria for the effectiveness of the pension system are identified. The parameters for assessing the effectiveness of the pension system are described. A set of measures has been formed to improve the current Ukrainian pension system. The necessary value of the replacement coefficient to reach the average level of European countries is determined. The restrictions to which the regulatory documents that will form the basis of the strategy of long-term development of the pension system of Ukraine are listed. The conditions that should be formulated to ensure the balance and long-term financial stability of the pension system are proposed. The integration of the pension system into other institutions of public administration and their interdependence on the example of the budget of the Pension Fund of Ukraine have been proved, a considerable part of which is formed on the basis of budget transfers. Overall, there are outlined significant institutional changes required by the functioning of financially stable pension system. The main attention is paid to the introduction of a fully functioning three-tier pension system. Initial changes have been proposed to approaches to the accrual of pensions, which must meet European standards and take into account the valorisation of income. [ABSTRACT FROM AUTHOR]

Effective management of financial security of the enterprise is impossible without the use of a strategic approach in this process. The author’s vision of a strategic approach to the management of financial security of an enterprise is presented in the article. The algorithm of a strategic management of financial security is proposed and the peculiarities of realization of each stage in accordance to the financial-legal norms are revealed. The following stages of strategic management of financial security of the enterprise are allocated: analysis and assessment of the level of financial security of the enterprise and its effectiveness, a mission statement, goals and objectives of the strategic management of financial security of the enterprise, evaluation of external and internal environment of the enterprise, formation of a portfolio of financial security management strategies, evaluation of strategies and selection of the optimal strategy, implementation of the chosen strategy of financial security management of the enterprise and evaluation of the effectiveness of its implementation. The strategies of management of financial security of an enterprise and the procedure for their selection, which is based on two criteria: level of financial security and effectiveness of the management of it are developed. In particular, it’s proposed the anti-crisis strategy, which may be general or functional; growth strategy, which we divide to the strategy of rapid growth, moderate growth, concentrated growth and diversified growth; a stabilization strategy that includes a strategy of intensive stabilization and a strategy of extensive stabilization; a protective strategy that includes a strategy of passive protection and a strategy of active protection. Also, the matrix of the choice of the strategy of financial security management in accordance two criteria: the level of general financial security of an enterprise and the level of security of its components is proposed. [ABSTRACT FROM AUTHOR]

The system paradigm, which is the basis of the concept of ensuring the financial stability of the banking system, involves the definition of external relations and macroeconomic factors. This necessitates an appropriate assessment of the volatility of the financial stability index from determinants. Using multidimensional factor analysis and selection of indicators with the highest values of factor loads, it is established that the first factor has the highest correlation with the exchange rate, minimum wage, deposit interest rate in foreign currency, loan interest rate in foreign currency, gold reserves; the second factor is formed by indicators of real GDP and consumer price index; the third factor is closely related to the deposit interest rate in hryvnia. Determining macroeconomic factors to ensure the financial stability of the banking system are: deposit interest rate in foreign currency, exchange rate, consumer price index and the size of gold and foreign exchange reserves. The assessment of the level of sensitivity of the financial stability of the banking system to changes in determining macroeconomic factors should be based on the coefficients of elasticity obtained taking into account the results of regression analysis. An increase in the parameters that characterize macroeconomic factors by 1% of the average level, both positively and negatively affects the value of the index of financial stability of the banking system. Determining the sensitivity of the financial stability index of the banking system to changes in determinants through the calculation of elasticity factors allowed us to state that among macroeconomic factors, changes in the level of stability of the banking system of Ukraine are most determined by consumer prices and exchange rates. [ABSTRACT FROM AUTHOR]

The article investigates the deteminants of the competitiveness of the banking sector of the national economy on the basis of the comparative analysis of the functioning of the banking systems of Ukraine and Poland.The authors conducted research using the following methoddology: comparative analysis of the institutional efficiency of the banking sectors of Ukraine and Poland; comparative analysis of the level of concentration of the banking sector of Ukraine and Poland; comparative analysis of the microeconomic and macroeconomic efficiency of the banking sectors of Ukraine and Poland; comparative analysis of tl1e social efficiency of tl1e banking sectors of both countries in terms of their financial inclusiveness. The results of the research showed the higher level of competitiveness of the Polish banking system, which is reflected in its stabe operation over the long period of time, resilience to crises and excessive risks, effective prudential supervision system, developed institutional structure, close to market and consumer banking needs, and thus dynamic growth of banking financing of national economy and the availability of banking products for businesses and households. In contrast to Polish banking system, Ukrainian banking system in recent years has experienced the deep crisis and the significant number of bank failures, significant amounts of nonperforming assets, liquidity proЫems, etc. and thus in order to save systemically important banks the significant concentration of state capital, extremely high interest rates and as result significant reduction of the share of bank financing of the national economy and the presence of significant barriers to the availability of banking products for consumers. The authors summarized, that the key determinants of the competitiveness of the national banking sector are the following: the presence of the developed institutional structure of the banking system; prevention of monopolization and excessive concentration of the banking sector; effectively operated national system of banking supervision and regulation; the development of the banking sector as the key player in the national financial ecosystem and fulfillment Ьу the banking system its main functions in the economy and society. [ABSTRACT FROM AUTHOR]

In order to diagnose internal financial threats to the financial security of domestic corporate enterprises, а three-pronged system of assessment of their financial security has been proposed, in which it is proposed to include а classic financial analysis tool, financial stability assessment toolkit and value management toolkit. Coefficient and discriminant statistical models are used within the classical tools of financial analysis. In order to increase the informativeness of the coefficient model and ensure its comprehensiveness, а matrix f or diagnosing internal financial threats to the financial security of а corporate enterpгise has been developed, in which the level of financial security is determined Ьу assessing the state of financial performance, grouped into гegulatory conformity classes. On the basis of discriminatory statistical models, а model is proposed f ог assessing the level of financial security of corporate enterprises, depending on the peculiaгities of the scale of indicative values of the most popular models of bankruptcy risk diagnosis. То diagnose financial secuгity, а model fог assessing the financial stability of opeгational activities has been proposed as part of the financial stability assessment tool, that measures the level of financial secuгity of corpoгate enterprises Ьу classifying financial situations accoгding to theiг degгee of stability, depending on the composition and structure of souгces of supply гequiгements f ог геsегvе formation. А matгix fог diagnosing the internal financial thгeats to the financial security of а corpoгate enterpгise based on the modified financial reporting model has been developed as а generic tool fог measuгing financial stability, which allows the determination of the level of financial security Ьу linking indicatoгs of financial stability, solvency and financial гisk. Based on the modification of the financial equilibrium matrix, а model has been developed for diagnosing the internal financial thгeats to the financial security of the enterpгise, according to which the level of financial security is determined Ьу the financial soundness zone, depending on the foгecasts of the special aggгegates. Value-based management (VBM) and balanced sсогесагd (BSC) аге justified to pгovide an effective strategic management tool with enhanced foгecasting capabilities to assess the financial security of corporate enterprises and to propose арргоргiаtе tools based on the cascading of financial indicatoгs. [ABSTRACT FROM AUTHOR]

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Copyright of Financial & Credit Activity: Problems of Theory & Practice is the property of University of Banking of the National Bank of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Financial & Credit Activity: Problems of Theory & Practice is the property of University of Banking of the National Bank of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Financial & Credit Activity: Problems of Theory & Practice is the property of University of Banking of the National Bank of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Financial & Credit Activity: Problems of Theory & Practice is the property of University of Banking of the National Bank of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Financial & Credit Activity: Problems of Theory & Practice is the property of University of Banking of the National Bank of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Financial & Credit Activity: Problems of Theory & Practice is the property of University of Banking of the National Bank of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Financial & Credit Activity: Problems of Theory & Practice is the property of University of Banking of the National Bank of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Financial & Credit Activity: Problems of Theory & Practice is the property of University of Banking of the National Bank of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Financial & Credit Activity: Problems of Theory & Practice is the property of University of Banking of the National Bank of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Financial & Credit Activity: Problems of Theory & Practice is the property of University of Banking of the National Bank of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Financial & Credit Activity: Problems of Theory & Practice is the property of University of Banking of the National Bank of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Financial & Credit Activity: Problems of Theory & Practice is the property of University of Banking of the National Bank of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Financial & Credit Activity: Problems of Theory & Practice is the property of University of Banking of the National Bank of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Financial & Credit Activity: Problems of Theory & Practice is the property of University of Banking of the National Bank of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Financial & Credit Activity: Problems of Theory & Practice is the property of University of Banking of the National Bank of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Financial & Credit Activity: Problems of Theory & Practice is the property of University of Banking of the National Bank of Ukraine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)