Finance and banking
THE PROBLEMS OF ECONOMY №3-2009
Ivanov Y. B.
World Experience of Tax Stimulation of Small Business (p. 64 - 68)
The specific character of application of taxation of the basic tools of tax stimulation of small business development in world practice has been considered in the article. The comparative analysis of the use of alternative tax systems has been given. The expediency of priority use of special methods of the charge of depreciation and investment tax credit has been substantiated. Article is written in Ukrainian Download article in pdf format - 
Prokopenko V. Y.
Real Estate Tax is the Call of the Times (p. 68 - 72)
The article considers the real estate tax. The bills submitted to the Verkhovna Rada for consideration and adoption have been analysed. The today's condition of real estate market (the segment of housing real estate), good timing of introduction of real estate tax which can considerably influence the development of real estate market of Ukraine have been analyzed. Article is written in Ukrainian Download article in pdf format -
Danko N. I., Reshetnyak O. I.
Estimation of Sensitivity of Investment Projects to the Change of Environmental Factors (p. 72 - 75)
The methods of estimation of risks of investment projects have been considered and analyzed in the article. The authors suggested determining the coefficient of sensitivity for quantitative estimation of the degree of influence of either variable on indicators of effectiveness of investment project. The suggested coefficient also allows comparing the degrees of influence of various variables. Article is written in Russian Download article in pdf format -
THE PROBLEMS OF ECONOMY №4-2009
Ivanov Y. B., Chumakova O. O.
Distribution o Tax Load Between Factors of Production and Consumption Taking into Account the Process of Shifting of Taxation (p. 79 - 84)
The article justifies the need to consider the process of shifting the tax in the calculation of implicit rates on the factors of production and consumption. Proposed update to the EU methodology on the inclusion of social transfers employers in the tax burden on capital. A comparison of the proportion of taxes in the price structure with the implicit rate of consumption revealed the magnitude of transcriptions of the actual manufacturer of taxes to the buyer. Article is written in Russian Download article in pdf format -
THE PROBLEMS OF ECONOMY №1-2010
Kolesnichenko V. F.
The Role of Credit Institutions in Financial Support of Innovation in Conditions of Development of Knowledge Economy (p. 65 - 71)
Knowledge in association with the social capital becomes the key factor of creation of competitive advantages, the main source of well-being of a society. In economy, based on knowledge, the side between fundamental and applied researches, between a science and technologies becomes more and more shaky, and innovations and knowledge are defining factors on which the sustainable development economy any state is based. One of conditions realizations of such process is obligatory presence of sufficient level of financial maintenance. Therefore an actual problem in the conditions of development economy knowledge is the increase in a role of the credit organizations in financing of innovative activity. Article is written in Ukrainian Download article in pdf format -
Pilipenko A. A.
Organisation of Accounting and Analytical Support of the System of Competitive Intelligence of Industrial Enterprise (p. 72 - 79)
The essence of the concept of competitive intelligence disclosed. Place of competitive intelligence in the management of industrial units defined. The particularities of the using to concepts of management knowledge in association enterprise are considered. The process of accounting information generation are oriented on preventive actions of economic entities. Article is written in Ukrainian Download article in pdf format -
THE PROBLEMS OF ECONOMY №3-2010
Hubarieva I. O., Shtaier O. M.
Definition of Set of Indicators of an Estimation of a Condition of Economic Safety of Bank (p. 66 - 75)
The article analyzes the main approaches to assessing the economic security of the bank. The method of assessing the financial stability of the bank is offered. Article is written in Ukrainian Download article in pdf format -
THE PROBLEMS OF ECONOMY №4-2010
Tischenko A. N., Antonenko S. V.
Taxes in the System of State Regulation of the Environment of Developed Countries (p. 98 - 104)
The main directions of environmental tax regulation were analyzed and potential areas of environmental taxes in Ukraine were identified. Article is written in Ukrainian Download article in pdf format -
Prokopenko V. Y.
The Bureau of Credit Stories: Evolution, Formation and Development Opportunities (p. 104 - 107)
In article formation and development of possibilities of bureau of credit stories in Ukraine is considered. Also world experience of functioning of bureau is considered. Article is written in Ukrainian Download article in pdf format -
THE PROBLEMS OF ECONOMY №2-2011
Kolodizev O. M., Shtaier O. M.
Formation of universal system of an estimation of economic safety of bank (p. 67 - 75)
The article is devoted to the description of the basic methods of an estimation of a bank economic safety and construction of integrated indicators. Also it considers analyses of the condition of banks economic safety of Ukraine and offers the technique of an estimation of a bank economic safety and its basic components. Article is written in Ukrainian Download article in pdf format -
Chmutova I. M., Afanasenko M. V.
External Rating Management of Bank of a Method DEA (Data Envelopment Analysis) (p. 75 - 79)
The formation of the rating of banks of Ukraine on the basis of DEA is proposed in the article. The rating model and the system of indicators to estimate the effectiveness of the banks is formed. The set of managerial recommendations for the banking management was developed on the basis of the calculation of the rating of banks in Ukraine. Article is written in Ukrainian Download article in pdf format -
Kirik T. N.
Share capital and preferences of investors (p. 79 - 82)
Investor’s restrictions and preferences influence on the investment attractiveness estimation of the object. The investment attractiveness level can be calculated more precisely within the limits of homogeneous group of investors. Article is written in Russian Download article in pdf format -
THE PROBLEMS OF ECONOMY №4-2011
Sabluk R. P., Kravchuk Y. V.
Financial leasing: current state and prospects of development (p. 121 - 123)
Theoretical specific features of financial leasing are examined, the current state, the problems of development and actual directions of its practical application are identified. Article is written in Ukrainian Download article in pdf format -
Nazarova G. V., Tarasenko A. A.
Analysis of investment opportunities of institutional investors (p. 124 - 130)
The article deals with analysis of investment opportunities of non-state pension funds by indicators of reliability and economic efficiency, which, at the current time of development of the system, fully reflect efficiency of operation of pension funds, when pension payments for a specific period nearly have not been done. The purpose of this analysis is to facilitate a more complete and objective justification of the principles of attraction of savings of private investors into long-term investments. Subject area of the article is relevant to such institutional investors as non-state pension funds, especially given the lack of experience of functioning of long-term savings systems in Ukraine by these institutions. Article is written in Ukrainian Download article in pdf format -
Nikolaev I. V.
Methods of assessment of financial risks of economic systems under crisis conditions (p. 131 - 134)
The article is devoted to issues of assessment of financial risks. Their main advantages and disadvantages are identified. Definition of the financial risk is formulated. Multifactor analysis is presented as a modern and perspective method of assessment of financial risks. Article is written in Russian Download article in pdf format -
Chmutova I. M.
Specific features of functioning of state banks in the banking system of Ukraine (p. 135 - 138)
This article is devoted to research and formalization of perspective directions of development of the domestic banking system in the context of improving functioning of state banks. Article is written in Russian Download article in pdf format -
THE PROBLEMS OF ECONOMY №1-2012
Lepeyko T. I., Kotelevska Y. V.
Analyses of efficiency of marketing strategies of advance of bank products (p. 96 - 100)
The analysis of charges of banks is conducted on marketing. The indexes of efficiency of marketing’s measures are expected. Key requirements are certain to forming of marketing strategy of advancement of bank products. Article is written in Ukrainian Download article in pdf format -
THE PROBLEMS OF ECONOMY №3-2012
Marchenko O. I.
Financial influence factors on innovative activity (p. 174 - 178)
In the article the financial factors affecting innovation, and examined the structure of industries industrial complex of Ukraine on technological structure of production. Article is written in Ukrainian Download article in pdf format -
THE PROBLEMS OF ECONOMY №4-2012
Mayburov I. A.
The Problem of Tax Expenditures Identification and Evaluationf: Methodological Approach (p. 187 - 193)
The problem of identification and evaluation of tax expenditures is actualized in the article. The degrees of elaboration of this problem is analyzed. We investigate different approaches to the understanding of tax expenditures, the author's definition is given. Approach to the separation of the basic tax and regulatory structures is investigated. The conclusion that such separation is very promising for the assessment of national practices is grounded. A series of steps estimates of tax expenditures is shown. The original formulae for calculating annual tax expenditures and tax expenditures for the period of display effect benefits are presented. Article is written in Russian Download article in pdf format -
Azarenkova G. M., Piskunov R. A.
Determination of Boundary Parameters of Cash Flows Regulation of Bank Contractors Using Methods of Financial Analysis (p. 194 - 199)
The selected risk forming factors of cash flow value is determined with the help of hierarchical system of interconnected methods and models of different types. The boundary parameters of cash flows regulation between economic agents by taking into account the coefficient of credit resource of bank contractor in the period of lending bank service for contractor is determined by expansion of parametric model. Article is written in Ukrainian Download article in pdf format -
Vovk V. Y.
The Theoretical Foundations of Providing Financial Safety of Bank (p. 200 - 204)
The article gives methodology-theoretical points of providing financial safety of a bank which consist of reasonable system of its implementation principles, key characteristics and the main objectives, as well as the list of internal and external threats which may constitute danger to realisation of interests and priority purposes of a bank institution, understanding of which allows to create a reliable system ensuring financial safety of a bank. The specified determination of the concept "financial safety of a bank" is complex and provides realisation of system of actions ensuring financial safety of a separate bank, as well as a banking system as a whole for self-defence, self-development and self-preservation of national banking sector in the conditions of strengthening of macroeconomic instability in the country and the world. Article is written in Ukrainian Download article in pdf format -
Portna O. V.
Financial Potential of Ukraine: Problems and Prospects (p. 205 - 208)
The article presents an analysis of some topical and disputable aspects of the financial potential of Ukraine. Theoretical and practical aspects of the nature of economics and the essence of the financial potential have been studied. The approaches which determine completeness of formation, objective estimation, and effectiveness of using the financial potential have been spotlighted. The constituent elements of the financial potential of Ukraine have been detailed and completed. The prospects of financial reinforcement and development as the base of Ukraine’s economic security have been suggested. Article is written in Ukrainian Download article in pdf format -
Kalambet S. V., Uskov I. V.
Territorial Finances in the Conditions of Acceptance of the New Budgetary Code of Ukraine (p. 209 - 215)
The features of forming of financial resources, their of distribution in the conditions of acceptance of the new Budgetary code of Ukraine, are defined in the article. Further measures are offered on strengthening of budgetary-tax decentralization, creations financially of independent local authorities of power. Article is written in Russian Download article in pdf format -
THE PROBLEMS OF ECONOMY №1-2013
Abakumenko O. V.
Modelling supply in Ukrainian financial market (p. 283 - 290)
The article states that despite the fact that financial market of Ukraine is insufficiently developed, volatile, disproportional, speculative and being significantly dependant on foreign capital and foreign economic dynamics, its progressive development is accompanied with growth of volumes of supply in it and appearance of its new modern forms, which are adequate to economic realities. The article offers a scientific and methodical approach to identification and assessment of supply in the financial market, which allows drawing justified conclusions with respect to its quantitative expression, which serves as a basis for modelling one of the main aspects of the study of the financial market situation – identification of balance parameters in it and also identification of factors that influence formation of this balance. It uses the conducted calculations for forecasting main directions and tendencies of development of the financial market in the context of assessment of supply in this market for the future period. Article is written in Ukrainian
Shumskaya S. S.
Empirical assessment of influence of changes of private real effective exchange rate (REER) of Ukrainian hryvna (UAH) on export and import flows in the context of types of economic activity (TEAs) (p. 291 - 303)
The article substantiates a necessity of analysis of influence of the exchange rate dynamics on volumes of export and import operations through the use of not aggregated but private (individual) indices of REER of UAH, built for individual goods and types of economic activity. Assessment of private REER of UAH by export and import baskets for the period from 2003 till 2011 allowed making a conclusion that strengthening of UAH before crisis had different influence on exporters and producers of products for the domestic market. Analysis of private indices of REER of UAH for individual TEAs of industry revealed that, as of the end of 2011, the products of both extractive industry and processing industry preserved the reserve of price competitiveness with respect to the year 2003. Reduction of REER in 2009 from 109.7 down to 93.3 showed that devaluation of UAH in the end of 2008 made 47.9% of Ukrainian products competitive if compared with pre-crisis 26.2% in the structure of export of goods. The article shows results of assessment of exchange rate elasticity of export of products of individual industrial TEAs, received in the result of realisation of econometric models of assessment of influence of UAH exchange rate changes upon volumes of export during the 2003-2011 period. Changes in the structure of import by directions, shown on the basis of analysis of data of expenses-production tables of Ukraine in main prices, helped to confirm factual dependence on import factors of production of some of the products that go to the domestic market. The conducted detailed analysis of exchange rate effects on different sectors of economy allowed allocation of TEAs groups, which are potentially interested in strengthening UAH and those that can obtain profit from devaluation. The article provides results of econometric modelling of influence of changes of private REER on volumes of import of products of individual TEAs groups, which gives an assessment of exchange rate elasticity of import. The article makes model calculations and shows that exchange rate effects significantly depend on participation of a branch in international competition, its orientation on foreign or domestic market, and scale of use of imported raw materials and components. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №2-2013
Novak S. N.
Optimisation of the structure of the dealing service of the bank with a limited base of counteragents (p. 201 - 205)
The article considers methods of assessment of optimal parameters of the dealing service of the bank with a limited base of counteragents. The methods are based on a mathematical model of microstructure of the interbank currency market [5]. The methods allow identification of optimal parameters of the infrastructure of the dealing service of the bank based on indicators of dynamics of currency rates and market environment of the bank. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №3-2013
Aptekar S. S., Skomarovska K. A.
Problems and prospects of modern methods of business analysis in the process of assessment of solvency of borrowers (p. 261 - 266)
The goal of the article is a comparative analysis of modern methods of business analysis in the process of assessment of solvency of borrowers of Ukrainian commercial banks, study of prospects and problems of the use of methods in the credit process. In the result of the study the article systemises and considers the conduct of the credit process of Ukrainian commercial banks. It becomes clear from result of the study that it is impossible to obtain a single assessment of solvency of a borrower with generalisation of numerical and non-numerical data. Assessment of qualified analysts is required for a justified assessment of solvency apart from information represented in numbers. Improvement of approaches to assessment of solvency of borrowers and adaptation of the existing foreign experience in this field to specific features of formation of solvency of Ukrainian borrowers are important tasks for the Ukrainian banking system. Prospects of further studies in this direction are establishment of importance of the conduct of business analysis and its key role in assessment of solvency of borrowers as a main instrument of minimisation of the credit risk. Improvement of this sphere of analytical work in Ukrainian banks should be carried out in the following main directions: study and analysis of qualitative indicators of business activity; analysis of main sections of the business plan; expansion of the composition of indicators of the financial analysis for obtaining information; conduct of analysis of possible sources of repayment of loan liabilities; and active use of analysis of cash flows of an enterprise. Article is written in Ukrainian
Vovk V. Y.
Theoretical and applied aspects of use of the balanced scorecard in bank management (p. 267 - 273)
The article analyses directions of use of the balanced scorecard (BS) for managing bank activity. It systemises strategic goals within financial, client and process sub-systems and BS personnel sub-system. It generalises advantages of BS integration into the process of bank management. It offers distribution of functions of the strategic map as a BS instrument depending on the stages of its formation and use. In order to increase efficiency of introduction of strategic maps, the article justifies allocation of each of the formulated functions. It considers specific features of the process of BS cascading on different levels of bank management and the role of personnel in realisation of the strategy. Article is written in Russian
Kovtun O. A.
Problems of periodisation of transformation of financial behaviour of households in the market of financial services of Ukraine (p. 274 - 281)
The goal of this article is justification of transformation of financial behaviour of households within the proposed periodisation of formation and development of the economic system and financial markets of Ukraine. The article conducts analysis of existing periodisations of the national financial market, reveals their advantages and disadvantages and offers own periodisation of establishment and development of the market of financial services. In the process of the study the article proves that changes that take place in the economy directly influence mentality and financial behaviour of households. Deliberate, active or inertial behaviour of households, in its turn, forms both increase and reduction of market demand on several financial services. Prospective directions of further studies are development of indicators of financial behaviour of households under modern conditions and construction of models that would allow formation of behavioural clusters. To do this it is necessary to analyse foreign experience of management of financial potential of households with the aim to detect existing mechanisms of activation of their financial activity and to develop new effective ones. Article is written in Ukrainian
Moldavska O. V., Demidenko A. V.
Statistical assessment of quality of credit activity of Ukrainian banks (p. 282 - 288)
The article conducts an economic and statistical analysis of the modern state of credit activity of Ukrainian banks and main tendencies of its development. It justifies urgency of the statistical study of credit activity of banks. It offers a complex system of assessment of bank lending at two levels: the level of the banking system and the level of an individual bank. The use of the system analysis allows reflection of interconnection between effectiveness of functioning of the banking system and quality of the credit portfolio. The article considers main aspects of management of quality of the credit portfolio – level of troubled debt and credit risk. The article touches the problem of adequate quantitative assessment of troubled loans in the credit portfolios of banks, since the methodologies of its calculation used by the National Bank of Ukraine and international rating agencies are quite different. The article presents a system of methods of management of credit risk, both theoretically and providing specific examples, in the context of prevention of occurrence of risk situations or elimination of their consequences. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №4-2013
Manoilenko O. V., Lisina V. Y.
Methods of state financial regulation of the corporate sector of economy (p. 318 - 323)
The article conducts the study of theoretical approaches to formation of methods of financial regulation of the corporate sector of economy and identifies their composition and priorities of application. It marks out main stages of their formation, which include identification of: goals, factors of influence, criteria and restrictions that allow development of instruments of state financial regulation. It offers typologisation of the organisational and financial composition of instruments of state financial policy, among which there are main groups: supporting the functioning mode, stabilising and transformational (directed at changing the form of organisation or structure of the corporate sector and/or mode of its functioning), which, in their turn, are divided into two classes: financial-economic and institutional. Article is written in Ukrainian
Volokhova I. S.
Financial equalisation in Ukraine: search for an efficient model (p. 324 - 330)
The goal of the article lies in development of an efficient model of financial equalisation of income of territorial budgets, which would allow achievement of the maximum degree of accounting of needs of the population. The author considers advantages and shortcomings of various types of inter-budget transfers and shows the problems of financial equalisation in Ukraine. In the result of the study the article develops an economically more efficient model of financial equalisation for Ukraine, which would not violate sovereignty of consumers and stimulate bodies of local self-governance for accumulation of own income base. The article shows that common inter-budget transfers are the most optimal type of horizontal financial equalisation. In order to conduct it efficiently, it is necessary to achieve the balance between the financial needs of territorial units and their financial potentials, which are taken into account during financial equalisation. Equalisation grants are offered to be provided mainly by means of the funds that are transferred from the lower level budget into the higher level budget. Increase of the financial potential could be realised through attaching some of the state taxes, dues and mandatory payments to local budgets. The article justifies the necessity to reduce the degree of the financial equalisation. The author offers to provide target-oriented inter-budget transfers by objective criteria and only in the event of a necessity of stabilisation of cyclic fluctuations of economy and equalisation of income of the population. The considered issues are the basis for further deeper applied studies, connected with the necessity of conducting reforms of financial equalisation, for development of some legislative norms, which creates prerequisites for further system reformation of territorial finance in Ukraine. Article is written in Ukrainian
Goykhman M. I.
Diagnostic approaches to analysis of the problem situation of unprofitableness of the banking system (p. 331 - 340)
The article contains diagnostics of unprofitableness of the banking system of Ukraine with application of an approach to analysis and assessment of influence of individual bank groups by classification of the National Bank of Ukraine on its unprofitableness and profitableness. The article describes a diagnostic approach to analysis of the problem situation of unprofitableness of the banking system. It illustrates the use of the developed tools when conducting diagnostics of the problem situations of activity of the banking system. It forecasts values of the “net loss” and “net profit” indicators of the domestic banks and identifies a big range of change of the forecast value of the “net loss” indicator and low range of change of the forecast value of the “net profit” indicator as of 2013 for the banking system of Ukraine. This testifies to a problem situation of unprofitableness of activity of domestic banks by various groups by classification of the National Bank of Ukraine, which has to be diagnosed, analysed and assessed on behalf of the regulator of the banking activity. The article shows that activity of the banking sector of Ukraine in 2010 – 2012 was not stable. In spite of the fact that the general volume of own capital, assets and liabilities was increased and the size of losses was reduced, there are significant jumps in the rates of development of both bank groups and the whole banking system. Article is written in Ukrainian
Melnychenko O. V.
Audit of bank’s information security when working with electronic money (p. 341 - 347)
The article is devoted to the audit of the bank’s information security when working with electronic money. The author considers main requirements and principles of conducting audit, identifies main directions of the audit, in particular, organisational-technical and legal provision of banks for prevention of violation of integrity, accessibility, confidentiality and observance of information systems, which ensure functioning of the electronic money systems. Moreover, the article pays attention to social engineering and focuses on the necessity to conduct audit of training of bank specialists that deal with electronic money operations and users (owners) of electronic money. Article is written in Ukrainian
Pogorelenko N. P.
Approaches to formation of the mechanism of managing the bank’s economic capital (p. 348 - 355)
The goal of the article lies in development of theoretical and methodological grounds of formation and use of the mechanism of managing economic capital of the bank, based on application of procedures of dynamic modelling of movement of financial resources. The article shows that the main task of operation of such a mechanism should become development of principles of formation and reference points of use of banking resources and ensuring their observance. The article provides proposals on formation of the mechanism of managing the bank’s economic capital, the basis of which is the dynamic model of flows of banking resources. It is reduced to identification of desired trajectories of resulting indicators, which are offered to be considered as its leverages. The prospect of further scientific studies is interconnection of the said leverages with specific methods of impact on them. This requires not only development of “leverages – methods” correlation, but also accounting of parameters of necessary provision and establishment of dependence of selection of the method on the scenario of change of the level of a specific indicator (leverage). Article is written in Ukrainian
Portna O. V.
Classification of the aggregate financial potential of a country (p. 356 - 360)
The goal of the article is an all-sided demonstration of specific features of the aggregate financial potential of the country through identification of features, which reveal its essence, functions, role and place in economy to the biggest extent, which is possible to do by means of allocation of its classification features. Analysing scientific works of many scientists, the article considers various approaches to classification of the financial potential. In the result of the study the article identifies the vector of theoretical grounds and dominating logic of classification of the aggregate financial potential of a country. It shows that the essential basis of classification of the aggregate financial potential of a country are its specific features and functions, which it performs in the country’s economy. The article offers the author’s position on differentiation of classification features of the aggregate financial potential of a country on the basis of its specific features and functions. The prospect of further studies in this direction is development of such scientific directions as formation and functioning of the aggregate financial potential of a country with consideration of the provided classification and further use of the classification for justifying managerial decisions on the basis of the results of the study. Article is written in Ukrainian
Rats O. M.
Integral assessment of efficiency of anti-crisis bank management (p. 361 - 367)
The goal of the article lies in justification and development of the methodical approach to assessment of efficiency of anti-crisis bank management. In order to increase the quality of measuring efficiency of anti-crisis actions of the bank on the basis of the theoretical analysis, the article identifies more essential local characteristics of assessment of efficiency of anti-crisis actions, consisting of indicators of financial sustainability, business activity, liquidity and efficiency of bank management. In order to build the generalising indicator of assessment of efficiency of anti-crisis bank management the article identifies requirements, by which the model of assessment of efficiency of anti-crisis bank management is formed on the basis of use of the method of taxonomic indicator of development. The article establishes succession of stages of building and calculation of the integral taxonomic indicator of assessment of efficiency of anti-crisis bank management. The article uses the proposed methodical approach to identify the integral taxonomic indicator of assessment of efficiency of anti-crisis management of Public JSC Ukrsotsbank. The prospect of further studies in this direction is taking into account the quality particular characteristics, which would give a possibility of accounting the level of various types of bank risk: interest, exchange, currency, etc., in the integral assessment of efficiency of anti-crisis management by the bank. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №1-2014
Shalimova N. S.
Audit result and its users (p. 265 - 271)
The article identifies essence of the “audit result” and “users of audit result” notions and characteristics of the key audit results user. It shows that in order to give a wide characteristic of users it is expedient to unite all objects, which could be used (audit report, fact of refusal to conduct audit and information that is submitted to managers in the process of audit) with the term “audit result” and classify it depending on the terms of submission by final and intermediate result. The article offers to define audit results user as a person, persons or category of persons for whom the auditor prepares the audit report and, in cases, envisaged by international standards of the audit and domestic legislative and regulatory acts, provides other additional information concerning audit issues. In order to identify the key audit results user the article distributes all audit tasks into two groups depending on possibilities of identification of users. The article proves that the key user should be identified especially in cases of a mandatory audit and this process should go in interconnection with the mechanism of allocation of a key user of financial reports. It offers to consider external users with direct financial interests, who cannot request economic subjects directly to provide information and who should rely on general financial reports and audit report when receiving significant portion of information they need, as the key user. The article makes proposals on specification of the categorical mechanism in the sphere of audit, which are the basis for audit quality assessment, identification of possibilities and conditions of appearance of the necessary and sufficient trust to the auditor opinion. Article is written in Ukrainian
Duba O. M., Polishchuk Y. A., Gernego I. O.
Participation of non-banking financial organisations in crediting innovation projects (p. 272 - 277)
The article describes main results of study of non-banking financial institutions as creditors of innovation projects. Based on the analysis of their investment activity, the article identifies their place and role in financing innovations. The article also compares banks and non-banking financial institutions as participants of innovation projects. On the basis of statistical data it characterises the modern state of non-banking financial institutions in the market of crediting innovation projects and forecasts their further functioning and status by pessimistic, realistic and optimistic scenarios. In order to achieve the level of realistic scenario of development of the non-banking financial institutions in innovation projects, the article offers a plan of organisation of participation of non-banking financial institutions in innovation projects. Crediting innovation projects by non-banking intermediaries has not only commercial but mostly social effect, since their realisation gradually brings the country’s economy to a qualitatively new technical and technological level. Earlier, scientists paid significant attention to banks as main creditors, leaving non-banks aside. The article shows advantages of participation of non-banking financial institutions compared to banks, which seems valuable from the point of view of development of this issue in the financial science environment. The prospective direction here is a study of banks and non-banking financial institutions as competitors in the market of crediting innovation projects. Article is written in Ukrainian
Tysyachna Y. S.
Methodical approaches to assessment of quality of the bank loan portfolio (p. 278 - 283)
The goal of the article lies in the study of basic methodical approaches to assessment of the quality of the bank loan portfolio, identification of specific features of their practical application and justification of selection of the most appropriate for the modern economic conditions. The article considers three main groups of methods of assessment of the quality of the bank loan portfolio: expert evaluation methods and statistical and analytical methods. It goes without saying that in order to obtain an objective assessment of quality of the bank loan portfolio it is necessary to apply a complex approach, however, due to some advantages and shortcomings of the studied methods, the author marks expediency of building an integral indicator, taxonomic in particular, in order to obtain a complex, objective and efficient assessment of the bank loan portfolio. Prospects of further studies in this direction are assessment of the quality of the loan portfolio of the first group banks by the size of their assets through building integral taxonomic indicators and identification, on this basis, of factors that influence the quality of the loan portfolio with the aim of improvement of the mechanism of management of the bank lending activity. Article is written in Ukrainian
Trygub O. V.
Specific features of domestic banks activity in the factoring services market (p. 284 - 291)
The article analyses specific features of formation and development of the domestic factoring market. In the result of the study the article establishes that development of factoring in Ukraine took place due to active participation of banking institutions in this process and nowadays they are leaders in the domestic factoring services market due to possessing significant competitive advantages if compared with non-banking companies that specialise in factoring. The article detects that nowadays the banks are not only offerers of factoring services and finance factoring operations of other market participants, but also take an active part in establishment of factoring branches and are consumers of factoring services. In order to accelerate development of international factoring in Ukraine, the article offers such forms of state support of banks, which render factoring services to domestic exporters. The article recommends to focus banks’ attention, under modern conditions that are characterised with volatility of financial markets, on factoring servicing of those clients, whom they have long business relations with, without jeopardising themselves through provision of factoring services to a big number of small debtors. The article provides schemes of banks’ co-operation in the sphere of “non-classic” factoring with accredited factoring companies. Article is written in Ukrainian
Chmutova I. M., Maksimova M. V.
Assessing efficiency of formation of the bank’s system of financial controlling (p. 292 - 297)
The article offers a scientific and methodical approach to assessment of efficiency of formation of the bank’s system of financial controlling, which takes into account two components – assessment of efficiency of team work on introduction of financial controlling as an investment project. This would allow identification of expediency of investments into the project on introduction and taking into account not only professional level of the team but also psychological distinctive features of its each member. In order to determine correlations of the assessment components the article forms a matrix that would serve as a basis for development of the necessary complex of actions with respect to increase of the bank’s financial controlling efficiency. Article is written in Ukrainian
Khodyakova O. V.
Analysis of indirect taxation in Ukraine (p. 298 - 303)
The goal of the article is analysis of the structure and dynamics of indirect taxes for the previous five years and also the influence of indirect taxation upon formation of income of the State Budget of Ukraine. The article analyses the modern state of indirect taxation in Ukraine. Specific weight of the value added tax, excise tax and customs duty are considered in the structure of tax receipts of the consolidated budget of Ukraine as indirect taxes. The article shows that receipts of the State Budget of Ukraine are mostly provided by indirect taxes. The Ukrainian taxation system is mostly a factor of reduction of the level of economic growth and investment activity in the country and the existing system of administering is not completely capable of excluding the possibility of tax evasion. The prospect of further studies in this direction is improvement of organisation of tax control in Ukraine and differentiation of the value added tax rates depending on the level of consumption of goods and level of income of consumers. Article is written in Russian
THE PROBLEMS OF ECONOMY №2-2014
Kravchuk I. S.
Banks' Activities in the Field of Mezzanine Financing (p. 290 - 295)
Reduction of the financial stability of enterprises has led to narrowing of opportunities for the "classic" financing, which reduced the number of suitable sites for giving loans and investment by banking institutions. The article explains the need to diversify the product line of banks by establishing mezzanine financing, which will allow banks to use additional tools for credit risk management and companies to obtain the necessary resources for the implementation of innovation and investment projects. The purpose of the article is to determine the advantages and disadvantages of mezzanine financing, to analyze the current state of development of this type of financing in international practice and to develop proposals for its implementation at the national capital market. As a result of the analysis of international experience in mezzanine financing development, the author suggests the banks in Ukraine to create a national mezzanine segment of the financial market as a basis for the development of mezzanine loan products (subordinated loans with the right to participate in the profits of the company recipient), the active cooperation with the real economy on the construction of a mezzanine using securities (convertible bonds or debt securities with warrants), investments in these financial instruments and also on the basis of establishing qualified loan funds subsidiaries in mezzanine financing. To ensure the development of mezzanine financing in Ukraine the government support is grounded in the legal aspect of creating the conditions for the implementation of mezzanine instruments and towards the use of state-owned banks or resources to develop a program mezzanine financing to small and medium-sized businesses with the participation of international financial and credit institutions through State Innovation Finance Institution. Article is written in Ukrainian
Melnychenko O. V.
Accounting Concept of Electronic Money in Banks (p. 296 - 301)
The article provides a solution to the problem of counting electronic money in the banks, which is due to the need to establish a proper monitoring system, data sources for the implementation of the economic analysis of electronic money in banks. The concept of counting electronic money is also intended to help users identify the strengths and weaknesses of the financial side of the bank, to assess its liquidity and solvency. In this paper we reviewed some of the provisions of the International Financial Reporting Standards, which reveal the essence of operations with electronic money, and provided the complex financial model of operations with electronic money in banks. Article is written in Ukrainian
Kyrkach S. M.
Financial Plan as a Tool for Financial Planning of the Bank Activities (p. 302 - 308)
The purpose of the article is to study the process of formation of a financial plan as a tool for financial planning of the bank activities. Analyzing, systematizing and generalizing scientific works of many scientists and economists the essence of the financial plan of the bank, its structure and features of the formation (composition) were considered. The study focuses on eight main stages of the formation of the bank's financial plan, including: the selection of the study; payment scorecard evaluation of the current financial condition of the bank by groups of coefficients (financial stability, business activity, liquidity and management effectiveness (profitability)); identification of relevant indicators of evaluation of the current financial condition of the bank in the context of the proposed groups; Estimation of financial planning activities of the bank; determine the competitive strategy of the bank; formation (definition) of purposes; process of making the financial plan of the bank; definition and justification of possible ways to achieve the targets set by the bank's activities. It is proved that the proposed sequence of steps can reliably and objectively assess the economic environment of the bank, to identify the advantages and disadvantages of its activities, to establish such targets of the bank, the achievement of which is potentially possible. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №3-2014
Kotkovskyy V. S., Guzenko O. P.
Credit and Investment Innovations of a Commercial Bank: Performance Evaluation and Strategic Segment (p. 294 - 298)
The purpose of this paper is to develop a theoretical platform of methodology for assessing the cost-effectiveness of credit and investment activities of a commercial bank and its adaptation to modern depository institutions, which are the representatives of the banking sector. By analyzing, systematizing and summarizing the scientific work of many scientists, the existing relationship between the definitions of "efficiency of credit and investment bank innovation" and "innovation bank" were discovered, which allows us to consider the problems posed in the field of innovative development of modern banking institutions in more detail. The study was presented to the author's position regarding the estimation algorithm of additional financial flows of the bank, formed on the basis of the implementation of credit and investment innovation. It was justified from the point of view of measuring the cost-effectiveness of innovative processes in the bank that it is important to analyze the financial flows resulting from the implementation of banking innovation. The prospect of further research in this direction is to identify the main types of basic strategies in the implementation of bank credit and investment innovation. Further development of credit and investment innovations will enable modern banks to win positions in the market of banking products and services in a more confident way. Article is written in Russian
Рidkhomnyi О. М., Kudlyak Y. V.
Banking Business under the Reform of the Financial System (p. 299 - 304)
The aim of the article is to study the features of the world economy today. The global financial crisis has diagnosed the most problematic aspects of the development of the economies of individual countries and the relationships between them, which proves the relevance of the revision of the conceptual foundations of the structure and functions of the economic system in the world. The paper analyzes the features of modern reform of the existing and the creation of a new world (international) financial architecture. The basic characteristics of the development of the global banking system were highlighted, dominated by the functioning of the banking business under the conditions of financial globalization. Factors, which in the context of globalization form a strategy for the global banking system are the international nature of banking activities, the liberalization of financial markets, the emergence of global markets, strengthening of the global resource competition, increasing demand for larger loans, the development of the global information market. Among the factors promoting financial globalization authors suggest: uneven economic development of countries and the disproportionate allocation of financial resources; the deficit of own resources for the implementation of investment projects and financing of social and economic programs in most countries; significant potential of the markets in developing countries, which attracts high-yield operations; reduction of legal and regulatory restrictions on financial transactions between the countries; virtualization of financial transactions. Article is written in English
Somova V. V., Chumakova O. O.
Simulation Modeling of the Progressive Scale of Individual Income Tax Rates in the Ukraine (p. 305 - 311)
The article suggests a different approach for the choice of the tax rates on the income of natural persons, based on the simulation modeling, which unlike the other approaches makes use of both indicators of social security and of taxation burden rates, so that the irregularity in the distribution of income, in form of wages and of the tax burden on individuals will be reduced and budget revenues will be increased. It has been proven that the most appropriate progressive scale for the implementation in Ukrainian tax practice is as the following: 10% for wages up to 3 minimum salaries, 15% of the wages ranging between 3 to 10 minimum salaries and 25% for excesses of more than 10 minimal salaries. Article is written in Ukrainian
Cheberyako O. V., Loboda A. B.
Integrated Financial Intermediaries as a Form of Interaction between Banks and Nonbanks (p. 312 - 318)
The paper investigates the activity of the integrated feature of financial intermediaries as a result of interaction between banks and non-bank institutions. The scientific works of Ukrainian and Russian scientists were analyzed, on the basis of which the ordering and clarification of the terms of “financial supermarket" and "financial conglomerate" in relation to the term "integrated financial intermediary" were made. The author's interpretation of the term "integrated financial intermediary" was suggested. The main difference between the integrated financial intermediaries from the traditional specialized financial intermediaries (banks and nonbanks) were defined, which is to provide a wide range of financial services in one place and in the mode of non-stop, that is, around the clock for weeks. The study identified three forms of co-specialized financial intermediaries in an integrated financial intermediary (bancassurance as an association of banks with insurance companies; assurfinance as an association of insurance companies with banks; allfinance as the interaction of financial intermediaries, the banking, insurance and investment markets). The examples of integrated financial intermediaries in Ukraine were considered. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №4-2014
Volkovskyi I. I., Kotina H. M., Stepura M. M.
The Budgetary Capacity and Capacity of the Budget of the Area: Methodological Aspects (p. 357 - 362)
The objective of the article consists in identifying the structural interconnections between the notions of “the budgetary capacity of the area” and “the capacity of the budget of the area” on the basis of analysis and study of the financial capacity, fiscal space, and the budgetary capacity. The article uses analysis, systematization, and generalization of research findings of numerous scientists for discussion of the perspectives on the interpretation of the definitions of “financial capacity”, “fiscal space”, and “budgetary capacity” and establishment of the interconnections among them. The study allowed singling out three points of reference which should be taken into account while assessing the capacity of the budget of the area: the available fiscal possibilities, the fiscal federalism model, and effective operations of the governmental bodies. The first two points are described by the budgetary resources which can presumably be accumulated in order to exercise the authority of local governing bodies. The third point characterizes the availability of additional sources for funding of local government initiatives. The interpretation of the budgetary capacity was found to be different from that of the capacity of the budget of the area. The latter is essentially a part of the budgetary capacity of the area and its fiscal space. The hierarchy and interconnection between these notions allowed graphical construction of the dependence between the definitions, introduction of mathematical tools for their interrelations and further analysis of the possibilities for accumulation of financial resources of the area in the local budget. Article is written in Ukrainian
Ivasiv I. B., Fuksman O. Y.
The Status of Liquidity Management Systems in Ukrainian Banks (p. 363 - 368)
The objective of the article consists in studying the status of principal elements of liquidity management systems in domestic banks. Basic liquidity management strategies of banks were analyzed, the necessity of implementing an integrated liquidity management system was stressed. Key properties and elements of an integrated liquidity management system were identified. By using a questionnaire survey method, the current status of the liquidity management system in Ukrainian banks was analyzed in terms of correspondence of its elements to the characteristics of an integrated one; its principal flaws were identified. The necessity of equal attention paid by the management to the liquidity risk and the credit risk was substantiated. The prospects for further research in this field consist in analysis of the identified flaws of the liquidity management systems in banks and development of recommendations for their elimination, in particular: involvement of front-office representatives into active participation in liquidity management; introduction of an algorithm for calculation of a stimulating liquidity premium within the transfer model in order to achieve more efficient liquidity management by using transfer pricing; improvement of the information support of liquidity management by developing new reporting and analytical forms, etc. Article is written in English
Melnychenko O. V.
Organization of Electronic Money Audit in Banks (p. 369 - 375)
The article describes the technological aspects of the organization of the of electronic money audit in the banks. There are given practical recommendations for inspection on the basis of accounting data presented in the automated banking system as an example of one of the most popular banks in Ukraine - ABS «SR Bank». The main purpose of this work is to form integrated scientific approaches, activities and principles of the electronic money audit in the banks, taking into account other publications on this topic. There are analyzed the main aspects of the audit, highlighted the differences and characteristics of audit the organization and given practical recommendations for its implementation. The author examines each of the stages of the audit: planning, research, evaluation, determination of credibility and accountability, within each of which presents the problem of auditors to verify transactions with electronic money in the bank. Article is written in Ukrainian
Ohiychuk M. F., Horkovenko I. V., Skolotiy I. V.
E-taxation in the Accounting System of Value Added Tax (p. 376 - 381)
This article discusses the formation and functioning of the tax system. it is proved that the development of modern technologies and the widespread use of the Internet have contributed to a fundamentally new economic relations in the Information Society - e-tax. It is proved that a modern accounting system involves the use of primary documents, their workflow, storage and transmission of information on assets, equity and liabilities in electronic form. It is determined that among the main applications of electronic document is released electronic reporting, using the service "Electronic office of the taxpayer" and a system of electronic VAT administration. There is studied the system of electronic VAT administration and proved the need to address a number of issues, which will take into account the interests of both the state and taxpayers. Namely, there is need to implement the resolution of the issues of special VAT accounts service, bank statements periodicity, the cost of maintenance services, enterprise access to account information, date of VAT making on cash and barter, responsibility to the company for non-transfer of payments. The technique of reflection on accounts of value added tax, taking into account all the changes in its taxation is suggested. By debatable nature there are referred VAT refund from special accounts, including those for taxpayers who are in a special mode to VAT. Article is written in Ukrainian
Paientko T. V., Rudaia M. I.
Organizational Basis of the Customs Controlling in the Financial Services (p. 382 - 387)
The paper is devoted to the study of organizational basis of customs controlling in the financial services. The purpose of the article is generalization of key directions and justification of organizational basis of customs controlling in the financial services. According to the results of research the essence of customs controlling in the financial services is substantiated, its types (strategic and operational) and functions (service and consulting) are analyzed. The main directions of the customs controlling in the financial services are outlined. There are allocated the stages of customs controlling organization and defined related totality of management procedures directed to increase of service - oriented management and administration. There are characterized approaches to conduct customs audit, which special attention is aimed at preventing participation of financial institutions in customs payments evasion schemes. It is generalized that customs controlling in the financial services helps increase efficiency of financial flows controls through the adoption of optimal solutions in the sphere of foreign economic activity. Outlook for further research is generalization of world trends in customs controlling tools application in the financial services and adapting customs controlling to modern conditions of Ukrainian economy. Article is written in Ukrainian
Rats O. M., Tysyachna Y. S.
Study on the Competitive Advantages of Banks in the Deposit Market of Ukraine (p. 388 - 394)
The article is aimed to study the competitive advantages of domestic banks in the deposit market. In the article the state of bank deposits market has been analyzed. It has been defined, that market of deposit services is unstable due to the volatile situation in the country's economy, though it continues to evolve despite some problems. To the leading banks in Ukraine, as for both attracting deposits and criterion of reliability, belong the banks from the first group of the assets sizes. Clustering of 15 banks, carried out in the article in terms of deposit portfolio size as well as return on assets, has helped to distinguish five groups of banks. With aim of a more detailed study of the banks' deposit activities, the fourth cluster has been chosen, which includes the system-wide banks. Also in the article a competitive analysis of the banks from the fourth cluster, in terms of dynamics and structure of the deposit portfolio, and making use of the coefficient method, is conducted. SWOT analysis was applied to identify strengths and weaknesses as well as opportunities and threats to the bank. In order to elaborate a strategy and an effective strategic management, analysis of the bank's direct competition in the deposit market was carried out. It has been determined that benchmarking is the tool, which will allow the performance indicators of a bank to exceed competitors in the market of deposit services. Specific features of the application of benchmarking in the formation of bank's deposit policy has been disclosed. Benefits from use of benchmarking in the bank's deposit policy has been highlighted. Article is written in Ukrainian
Ryazanova N. S.
Financial Information as a Factor in Creation of the Value Added in the Innovation Market Economy (p. 395 - 406)
The objective of the work consists in studying financial information as a factor in creation of the value added in the innovation market economy. The innovation market economy is characteristic of the developed information (postindustrial) society and replaced the classical market economy at the beginning of the 21st century. This transformation gives rise to significant challenges which consist in the need for understanding the forthcoming informational changes, forming corresponding economic paradigms and searching for new efficient economic management mechanisms. Within the context of the innovation market economy, where all processes have a monetary dimension grounded in the pricing mechanism, financial information is of critical importance, which makes it a key component of efficient economic management mechanisms, it becomes a special factor in creation of the value added. Characteristic features of such information were discussed, in particular the processes of its obsolescence, qualitative characteristics, the ability to represent all surrounding phenomena and objects in the contrastive monetary dimension, and a series of other properties. Specific aspects of the process of creating the value added involving financial information were studied, as well as tendencies of this process in the innovation market economy. Article is written in English
THE PROBLEMS OF ECONOMY №1-2015
Zeldis V. V.
Organization of Trade in Derivatives at Stock Exchanges of Ukraine and the World (p. 266 - 273)
The article deals with analysis of the world derivative trade volumes in view of stock exchanges, tools, and categories. It is argued that the derivative segment of the exchange market is still in the making in Ukraine. The article considers the preconditions, operational characteristics, procedural rules for the trade in futures and stock options; the current practice of futures and options margining, settlement of derivative deals, provision of quotations for the corresponding deals, characteristic features of the domestic exchange derivative market. In the context of reliability crisis of the national financial system, in order to avoid numerous difficulties occurring within the derivative segment of the exchange market of Ukraine, it is recommended that small speculators as well as representatives of the small and medium-sized business sector requiring up-to-date risk management tools pay attention to the world centers of the exchange trade in derivatives. Article is written in Ukrainian
Melnychenko O. V.
Application of Methods of the Waiting Line Theory in Economic Analysis of Operations with Electronic Money (p. 274 - 279)
The article focuses on the study of the waiting line theory and application of its methods and principles while analyzing operations with electronic money in cash desks of various establishments, among them commercial enterprises and banks. The work analyzes cashiers’ operating results on the basis of data from the real sector of economy. The author proposes a mechanism for analysis of cashiers’ work taking into account the factors which have an effect on their operating results reflected in the number of customers served per unit of time. Besides, the author conducted modeling of changes in the indices of the cash desk performance capacity based on the results of replacement of methods that customers use to put money into the cash desk: transition to non-cash transactions by using only bank cards and electronic money. The study proves that decreased amount of time that customers spend on paying for goods or, for example, settling bills in bank cash desks, influences the cashier’s operating efficiency by increasing the customer traffic, as well as the quality of customer service and reduction in costs associated with maintenance of the cash operating units. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №2-2015
Bielova I. V.
Identification of the Critical Level of the Systemic Financial Risk Accumulation in the Economies of Countries of Central and Eastern Europe (p. 207 - 212)
The aim of the article is developing a system of indicators of systemic financial risk accumulation and determining their threshold values on the example of a group of countries of Central and Eastern Europe. The conducted study revealed the fact that it is advisable to carry out the monitoring of the level of financial risk accumulation using indicators reflecting the operation of various institutional sectors of economy: financial corporations, general government sector, non-financial corporations, households. The information base of the research is formed on the basis of quarterly data on the dynamics of 18 indicators illustrating the operation of these sectors. Approbation of the developed approach on the example of a group of countries of Central and Eastern Europe helped identify threshold values and critical levels of indicators of macroeconomic development that threaten the financial stability of the country. The calculation results revealed both common features of economic development of the countries as well as the specific national features. Article is written in Ukrainian
Vasylchuk I. P.
Sustainable Development Finance as a Response to the Post-Industrial Economy Challenges (p. 213 - 218)
The article is devoted to considering theoretical and methodological provisions of the concept of finance for sustainable development. The aim of the article is to study the essence, peculiarities and differences of finance for sustainable development as a phenomenon and provide a theoretical basis and the author's formulation of the definition. It was found that the reflection of finance on implementation of the provisions of sustainable development stipulated the emergence of a new phenomenon — sustainable development finance. It has been proved that there is an expansion of the object field of financial science research in the following components: participants of financial relations are diversified — both the providers of the capital and its recipients; innovative financial instruments, products and techniques are created and used. The mechanism of financial capital delivery involves the use of specialized financial models, tools, products and methods of mobilization and investment of capital, which take into account the peculiarities of the implementation of sustainable development activities. It has been reasoned that the concept of sustainable development finance is gradually acquiring both theoretical justification and practical confirmation that permits to introduce the term “sustainable development finance” in the academic discourse. There was suggested the author’s formulation of the definition of “sustainable development finance” and highlighted their constituents on the basis of the motivation of financial capital providers: socially responsible finance, socially oriented finance. Article is written in Ukrainian
Didenko O. M.
Influence of Intensity of the Banking Regulation Activity on the Profitability of the State Banking System (p. 219 - 225)
In the work the assessment of the influence of intensity of the banking regulation activity on the profitability of the banking system has been carried out. There were taken for consideration 23 countries (the UK, Germany, France, Russia, Kazakhstan, the United States, Belarus, Australia, Brazil, Canada, Colombia, Chile, Estonia, India, Malaysia, Poland, the Netherlands, South Africa, the Philippines, Nigeria, Morocco), which are characterized by the specific features of the banking system, as well as significant differences in the legal and organizational conditions of the implementation of banking regulation. On the basis of the calculations made the author came to the conclusion that the growth of the intensity of banking regulation activity is reducing the banking system profitability, at that, the presence of crisis conditions reinforces the negative effect that generally indicates the relevance of regulatory liberalization in terms of improving the effectiveness of the banking systems functioning. At the same time, analyzing the factors influencing the banks profitability it is necessary to study the relations at the microeconomic level, since the formation of a particular banking institution profit is affect not only by the general conditions of the country development and the functioning of the banking system, but also the specific characteristics of the internal management specialization, the form of the bank ownership and so on. In view of the above mentioned the author’s further research will be devoted to studying the relationship between the intensity of banking regulation activity and profitability of individual banks. Besides, the perspective for further research, in the author’s opinion, are the issues of determining the influence of the intensity and direction of banking regulation activity on the stability of the banking system of Ukraine and other countries of the world. Article is written in Ukrainian
Ryazanova N. S.
Institution of Financial Accounting in the Architecture of Financial and Economic Institutions of the Information Society (p. 226 - 239)
The article considers financial accounting as a social institution of the information society represented by the activities on providing information services in the field of finance. Being individual systems, social institutions form a multidimensional architecture of institutions with close internal connections. In this architecture, the relationship does not exist only in the vertical hierarchy, but in the other dimensions, among which are the spatial, temporal and informational ones. The whole architecture of institutions is “interfused” by the information institution, which includes the institution of financial accounting. At each stage of the society development there rapidly develop primarily institutions typical for the given stage determining its features, and in the information society among those is, in particular, the institution of financial accounting. In all countries, the state, business and the civil society, paying increasing attention to transparency in the activity of government authorities and corporations, focus on disclosure of information about the state and local finance, corporate finance and financial market, stating the growth of the importance of the institution of financial accounting. Financial accounting services can be provided by specialized financial information as well as analytical institutions and departments of financial and non-financial corporations, government statistical agencies and specialized departments of government authorities. Article is written in Russian
THE PROBLEMS OF ECONOMY №3-2015
Zavadska D. V.
Client-Oriented Approach: Forming the System of Management of the Bank Relations with Clients (p. 181 - 186)
The aim of the article is to develop the theoretical principles of forming the bank relations with clients as part of the client-oriented strategy implementation. As a result of the conducted research there has been presented the definition of client-orientation, mechanism and system of management. The system of management of the bank relations with clients, the purpose and objectives of its formation have been substantiated. The hierarchy of subjects of forming and managing the process of the bank relations with client has been presented. The ways of implementing in practice the functions of the mechanism of managing relations with clients have been revealed. It has been proved that for implementation of the client-oriented approach the banking institution should have a comprehensive view of its clients’ behavior, which detailed understanding will allow for a more accurate segmentation and building individualized partnership relations. Implementing the principle of totality of client relationships level and comprehensive knowledge, development of employee behavior techniques and special techniques for working with the most valuable clients, the use of analytics and forecasting tools will provide targeting of marketing campaigns and lead to minimization of additional costs, satisfaction of every client, loyalty, increase in the market share, growth of sales volume, increase in profits of the banking institution. Article is written in English
Zaslavska O. I.
Risks of resource provision of the banks in conditions of instability (p. 187 - 192)
Aim of the article is a characterization of the risks of resource provision of the banking and factors that affect them, as well as analysis and assessment of the Ukrainian banks’ activity in conditions of economical, social and political crisis. In the article there was researched the essence of resource banking risks. A definition of “risks of resource provision of a bank” was suggested. There was presented author’s classification of the risks of resource provision of a bank and were established causal connections between them. System risks faced by the banking system of Ukraine, in the context of its resource base, were analyzed. There were analyzed and investigated the causes of the outflow of deposits from the banking sector in Ukraine during the crisis. In the article were presented the dynamics of the hryvna devaluation in 2014-2015 and there were also revealed the key factors that led to its emergence and development. There was presented financial assessment of the impact of major bank risks on the economy of Ukraine, and was calculated the cumulative effect of the impact on the overall socio-economical situation of the state. Article is written in English
Kalinichenko L. L.
Crediting Businesses as a Form of Financial Support (p. 193 - 200)
In the article the modern methods of crediting businesses in Ukraine have been considered and practical recommendations on choosing a particular form and method of crediting, which depends on the characteristics of the borrower activities, its creditworthiness, crediting purposes and objects have been offered. Today the most common crediting methods in the banking practice are: credit line, overdraft, non-instalment term credit. Each of these methods has its own characteristics, which are suitable for specific areas of the organization activity. It has been found that the credit line benefit is that the borrower is given an opportunity within the fixed limit to use the credit funds immediately at the moment the need arises, which in its turn allows reducing the cost of the credit servicing, however, the main disadvantage of this method of crediting is that in the case of difficulties with the repayment of the previous tranche the bank may reduce or cancel the credit limit and enter an additional fee on the unclaimed credit line limit. Overdraft crediting is characterized by a rapid procedure of obtaining a credit, can be granted without security, does not have a targeted character, allows providing payments from the current account, at the same time the interest rate on the overdraft is higher than that on other credits, and another disadvantage is the requirement of mandatory and in a certain, relatively short time repaying the credit. Crediting in terms of lump-sum cash disbursement is characterized by simplicity in granting and consistency in the organization of the crediting process, but the accrual of interests occurs immediately after the transfer of funds to the borrower on the full amount of the received credit. Thus, when deciding on obtaining a bank credit the entrepreneur has to choose one or another method of crediting taking into account all the advantages and disadvantages of the chosen method. Article is written in Ukrainian
Karcheva G. T.
The System-Synergetic Approach to Development of Banking Systems under Conditions of Financial Instability (p. 201 - 207)
The aim of the article is to study the theoretical and practical aspects of using the system-synergetic approach to the development and functioning of banking systems under conditions of financial instability. It has been grounded that the theoretical foundations for the development of banking systems are based on the system approach, according to which the banking systems belong to a class of special complex dynamic, self-motivated and open systems with an integrated structure of subsystems and functions. The study of such systems should include two aspects — system-cybernetic and system-synergetic ones. It has been proved that under stationary conditions the banking system development goes on in accordance with the system-cybernetic model, which suggests the presence of a management subsystem, which functions are performed by the central bank. Under conditions of financial instability, in the pre-crisis, crisis and post-crisis periods to study the development of banking systems the system-synergetic approach taking into account the multi-variant and alternative development of the banking system at bifurcation points is used. The criteria of the banking system entering the phase of bifurcation based on assessing the volatility of the current liabilities and possibility of building an analytical trend have been determined. The methodical approaches to evaluating the synergistic effects and level of financial stability of the banking system have been suggested, experimental calculations have been made. Article is written in Ukrainian
Nieizviestna O. V.
The Marketing Aspect of Banking Competition (p. 208 - 215)
The aim of the article is to study the need for application of marketing tools in order to improve competitiveness and competitive advantages of banks. By analyzing, systematizing and summarizing the scientific works of many scientists, the relationship between the competitiveness of the commercial bank and its share in the banking market has been discovered. In the process of studying the integration of the strategy of maximizing customer satisfaction in the practice of strategic competition in the banking market there was presented the author’s position regarding the need to take into account the structure of the customer loyalty, as it is it that helps to properly distribute the bank’s marketing efforts. It has been proved that the technology of bank marketing should not only include the systems of identifying customer needs, creation of new financial products, but also contribute to the formation of the multi-factor strategic model of competitive strategy of the bank competitive development. It has been proposed to use the SWOT-analysis in order to effectively manage the bank’s competitiveness. Article is written in Russian
Pogorelenko N. P.
Peculiarities of the Dynamics of Volume of Credits Granted by the Ukrainian Banking System to Residents (p. 216 - 222)
Any questions related to crediting processes are constantly in the focus of attention. At that analyzing the dynamics of volume of the granted credits acquires a special role, as it determines movement of outgoing financial flows both of individual banks and the banking system in terms of stability of the banking system, individual banks and economic development in general. The purpose of the article is to analyze the movement of credit flows of the domestic banking system both with relation to the selected time period and for individual intervals during this time period. With the help of wavelet analysis local peculiarities of the studied time series have been identified due to decomposition of the incoming data into two sets of data, one of which is determined by a set of approximation coefficients, and the other — by that of detail ones. Approximation coefficients generalize the trend characteristics of the studied time series and detail coefficients reveal the existing peculiarities of the studied time series. The wavelet transform as a part of wavelet analysis permitted to build a hierarchical structure of the incoming studied time series, which increased the possibility of carrying out a more detailed analysis of the studied time series. Using wavelet analysis allows specifying periods of correlation and decorrelation between individual series of the analyzed data. It permits to draw conclusions about justifying adjustments of dynamics of components in the general series of the credit volume granted to residents and create a balanced policy of the impact on the banking system activity. The subject of the further research is developing recommendations on regulation of banking activities based on wavelet analysis. Article is written in Ukrainian
Chmutova I. M.
Peculiarities of Using the Balanced Scorecard Technology at Different Stages of the Bank Life Cycle (p. 223 - 230)
The objectives and indicators of projections of the Balanced Scorecard system (BSC): “finance”, “clients”, “internal business processes”, “staff development” at different stages of the bank life cycle have been defined. Through the allocation of representative indicators of the financial projection of BSC according to the groups (resource stability, liquidity, business activity, financial performance) the variability of their composition for banks being at different stages of the life cycle has been proved. It has been found that at the stage of creation the financial projection of BSC comprises: the level of interbank loans in liabilities, the level of interbank loans in obligations, ratio of highly liquid and working assets, share of retail loans in assets, return on the balance capital; at the stage of extensive growth it includes the rate of the capital participation in formation of assets, current liquidity ratio, ratio of overdue loans, return on assets; realization of financial goals of the bank at the stage of intensive growth can be measured by the total capital adequacy ratio, current liability ratio, share of retail loans in assets, net interest margin; at the stage of maturity the financial projection of BSC includes safety ratio, general liquidity ratio, ratio of credit activity, return on assets; at the stage of recession — the return on net assets, level of assets insurance by reserves, general liquidity ratio, solvency ratio. When choosing indicators to be included into BSC there was ensured the correspondence of the objectives and indicators of its projections to the bank general strategy at a certain stage of the life cycle and the dominants of its financial strategy. Article is written in Ukrainian
Yukhymenko T. V., Lapko O. O.
Influence of Socio-Institutional and Political Factors on Innovative Development of the Banking Sector (p. 231 - 236)
The purpose of the article is to study the impact of major socio-institutional and political factors on innovative development of the banking sector and to work out practical recommendations on their regulation. The article analyzes the influence of the main socio-political and institutional factors, namely, financial literacy and legislative control, on innovative development of the banking sector. It has been determined that these factors not only affect individual participants of the banking market, but also influence the economic development of the state as a whole. The level of financial literacy in Ukraine is inadequate, which has a negative impact on banking risks and reduces perception of innovative banking services. On the other hand, insufficient development of the domestic legislation hinders innovative development of the banking sector. It has been determined that the socio-political factors depend on the degree of risk and expenditures on innovation activities of banking institutions. Therefore, state regulators face the task of ensuring effective and transparent regulatory instruments to facilitate growth of responsibility both of banking institutions and individual consumers of banking services. An important condition in this situation is creating fair competitive environment due to the optimum ratio of macro-prudential supervision and the process of deregulation of the banking market. On the other hand, banks should realize their responsibility to the state and contribute to reducing systemic risks. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №4-2015
Matselukh N. P.
The Influence of Information Asymmetry on Pricing Mechanisms of the Securities Market and Development of Crises (p. 273 - 278)
The influence of information asymmetry on efficiency of operations in the securities market and generating risks of financial crises has been considered. It has been revealed that the main reasons of the information asymmetry in the securities market is the high cost of information, complexity of its receipt, limited access to it and lack of guarantee of the information reliability. The deepening of the information asymmetry in the securities market occurs at the expense of the activities of rating agencies, which behavior can often be seen as opportunistic. Financial intermediation as an effective financial market institution can change the depth of information asymmetry and contribute to concluding effective transactions in the securities market. The deepening of information asymmetry contributes to information imbalances, which in long-term development are transformed into information gaps. Information gaps successfully used by a small number of participants of the securities market can result in financial imbalances, which deepening is one of the causes for emergence of crises. This requires the development of new regulatory mechanisms able to limit the negative impact of information asymmetry on the development both of the securities market and financial market and the national economy as a whole. Article is written in Ukrainian
Chunytska I. I.
Problems and Prospects of Developing the Financial Market Infrastructure Potential under Conditions of Economic Shocks (p. 279 - 284)
The article is devoted to systematizing the problems of infrastructural potential in the securities market, and finding the ways of their solution under conditions of economic shocks. A large number of regulators in financial markets and the low efficiency of the regulatory process have caused a high risk of fraud with the financial market operations, in consequence of which the level of trust in it remains very low. All these problems over the last two years have worsened even more as economic uncertainty deepened under the influence of political uncertainty. This situation became the basis for the emergence of serious shocks in the economy, which aggravate the problems of developing the financial market and its infrastructural potential. The results of the conducted research have shown that under conditions of economic shocks the most vulnerable sectors of the financial market is the securities market, banking sector and insurance market. Under conditions of economic shocks the complex chains of mutual influence that exist between these sectors are being violated, which affects developing the infrastructural potential of the financial market. The negative impact on the infrastructural potential development is manifested through the low efficiency of the securities market, which is under excessive bank-centricity not able to soften the blows of economic shocks. The poor quality of the banking system regulation violates its resistance to crises, and the low quality of disclosure does not contribute to building trust in the banking sector. Taking into account the fact that insurance companies place their reserves mainly on bank deposits, the banking crisis is the cause of a chain reaction in the insurance market. As a result, the main elements of the financial market function efficiently. The solution of the identified problems includes improving the quality of information support of activity in the financial markets and raising the level of responsibility of the regulators for poor quality of regulation or inaction under conditions of economic shocks. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №1-2016
Biletska N. V., Lopatiuk R. I., Servetnik-Tzariy V. V.
The Systemic Banking Crisis of 2014-2015 in Ukraine: Causal Relationship (p. 235 - 241)
The aim of the article is to study the concept of systemic banking crisis in scientific and practical literature as well as determine the causes and consequences of systemic banking crises on the example of the Ukrainian banking system for the last two years. The definitions of “banking crisis”, “systemic banking crisis” have been considered and our own vision of the theoretical aspect of a systemic banking crisis has been suggested. The features of systemic banking crises, in particular the crisis of 2014—2015, through the prism of social, political, economic, micro- and macroeconomic factors have been identified. The consequences, to which it led the Ukrainian banking system, and its impact on the population living standards have been examined. The dynamics of main indicators of the banking activity in Ukraine over the last five years has been analyzed, and a few basic points, which require the investors’ attention when choosing a bank, have been suggested. Article is written in Ukrainian
Kolodizev O. M., Kotsiuba O. V.
The Analysis of Prospects for Derivatives Market Development in Ukraine in View of Solving the Problems of its Normative Legal Regulation (p. 242 - 248)
The increased uncertainty in the country’s economy, impossibility of raising capital only by standard financial instruments substantiated the need for such financial innovations as derivatives. The relevance of the suggested topic is justified by the lack of strong legislative framework regulating the market of derivative financial instruments, as well as by significant demand for them in Ukraine. The aim of the article is to analyze the development level of the normative and legal field of trade in the derivatives market as well as the quality of the formed system of main indicators for derivatives trading in Ukraine. The paper identifies the problem, which could be neutralized through the use of derivative financial instruments. The volume and structure of the world and domestic derivatives markets have been analyzed. Based on the analysis of the legal field of regulating the market of derivative financial instruments as well as statistical analysis of its volume and structure, the reasons for the low activity in the considered market have been justified and recommendations to improve the current situation proposed. Article is written in Ukrainian
Laktionova O. A.
Evaluating the Effectiveness of Possible Introduction of Fiscal Spending Regulation in Ukraine in Retrospective (p. 249 - 257)
A possible impact of introducing fiscal regulation of spending into the budgetary mechanism, if used before the financial crisis of 2008—2009 or afterwards, has been studied. Accumulation of public finance imbalances in the form of government deficit and debt was taken as an introduction effect. Two approaches are considered as a variant of the spending regulation — limitation of spending depending on the state revenue growth and depending on the nominal GDP growth as well. According to the dynamics, the model defined by the GDP dynamics has more tight restrictions but it is more correlated with the business activity dynamics and is more procyclical. Provided the application of the spending regulation at the beginning of the financial crisis, its level in the GDP would have amounted to 9—21%, the reserve of fiscal space according to this indicator would have amounted to 1—16 percentage points. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №2-2016
Lomeiko Y. A.
The State Financial Control in Ukraine: Directions of Improvement of its Organization and Evaluation (p. 148 - 160)
The aim of the article is to examine the essence of the state financial control, identify directions of its improvement and define effective methods for its evaluation. On the basis of the results of analysis of modern scientific works it is determined that the precondition for building an effective state financial control system is defining its role in public financial relationships. According to the data of the conducted study it was concluded that first of all, the state financial control is an instrument of fiscal policy and, therefore, its direct purpose is ensuring a sustainable socio-economic development of the country, i.e., achieving the goal of the fiscal policy. Besides, there revealed the need to harmonize the components of the fiscal policy and types of the state financial control in order to build an effective institutional structure of public administration. It is proved that the division of the state financial control into internal and external must be conducted in accordance with the fact whether the controlling body and the subject under control belong to the same or different branch of power. Also the results of the study suggest that for Ukraine it is expedient to choose the model of a decentralized internal state financial control instead of the existing mixed one in order to avoid duplication by the State Audit Service of Ukraine bodies of partially the functions of the Audit Chamber, and partially those of internal control departments, which operate in the executive branch. There determined inappropriateness of building a system of state internal financial control on the basis of the principles provided for the bodies of the external state financial control. This situation leads to ungrounded definition of the internal control as an object of internal audit, which is carried out by structural units in budget organizations. It is also important to emphasize the need to evaluate managerial decisions in exercising the audit of the control effectiveness in order to increase the responsibility of officials. Prospects for further research are to improve the methodology for evaluating the state financial control in general to identify those of its components that have a negative impact on its entire system. Article is written in Ukrainian
Portna O. V.
The State Policy on Modernization of the Aggregate Financial Potential of Ukraine (p. 161 - 166)
The aim of the article is to give a definition of “modernization of the aggregate financial potential of the country”, substantiate the directions and ways of the state policy on modernization of the aggregate financial potential of Ukraine. On the basis of the analysis, systematization and generalization of approaches to different kinds and types of modernization in the financial and economic sphere and its application to the constituents of the aggregate financial capacity of the country, it has been determined that the essence of the modernization of the country’s aggregate financial potential is in its renewal due to the disclosure of its structure, functions and mechanisms of implementation aimed at ensuring stable development of the national economy. According to the study results there have been proposed government measures to modernize the aggregate financial potential of Ukraine, including a complex system for stabilization of the national economy. The modernization paradigm implies an interconnected role of the system constituents that form the resource environment for ensuring the functioning of the national financial and economic sphere. Directions and ways of the state policy on modernization of the aggregate financial potential of Ukraine have a complex character both as a means of combating the existing financial and economic imbalances and from the standpoint of the requirements and expectations of society and of each economic entity. Prospects for further research in this direction are measures of the state policy on the expanded reproduction of the aggregate financial potential of Ukraine. Article is written in Ukrainian
Rohach F. I.
On the World and Regional Currencies (p. 167 - 172)
The problem of pegging currencies of developing countries to the US dollar is that its dynamics determines the economic instability of most of such countries and the world economy as a whole. In this regard there is a need to find alternative variants of the global monetary anchor to ensure the global financial stability. It is proposed to choose an anchor based on the basket of floating national currencies, which will be balanced by counter fluctuations of the basket currencies and be stable with respect to the national currency, as one of the variants. Such basket anchor can potentially perform the function of money and be used as the world and regional currency. The article presents the example of calculating the quotation of national currencies against the baskets based on the data on G-20 and EAEU countries. Article is written in Russian
THE PROBLEMS OF ECONOMY №3-2016
Gechbaia B. N., Vanishvili M. M.
Estimation of the Level of Competition in the Banking Sector of Georgia (p. 253 - 260)
On the basis of the latest literary sources and rich factual material the article consistently analyzes and estimates the level of competition in the banking sector of Georgia. In the course of relevant studies it was found (with further confirmation in the economic life), that the competition in the banking market has certain specific features, which make it different from the competition that is present in other markets. One of important differences is that the banking market operates with money — a commodity with absolute liquidity, which can not be replaced by other commodities. Another important feature is associated with the mobility of financial capital in the banking market. There made a conclusion that, despite the fairly low level of crediting the Georgian economy, the burden of debt service on each of the borrowers is hard enough, which is caused by the high interest rates and short-term nature. Accordingly, the lowering of interest rates is not only desirable for the overall economic development but also is a prerequisite for achieving the further growth of the banks themselves. Article is written in Russian
Dubyna M. V.
Application of the System Approach to Financial Services Market Research (p. 261 - 266)
The article analyzes the nature of the financial services market by using the system approach methodology. In particular, the attention is focused on the already existing conceptual approaches to defining the nature of this market, their basic aspects are analyzed. The use of the system approach allowed to identify the essence of the financial services market as a single, complex system, which is proposed to be considered as an aggregate number of consumers and providers of financial services operating within a single economic space, their relationships emerging to meet different in their nature demands for financial services, with their interrelation being associated with movement of financial resources within this space and partially accompanied by processes of transformation of temporary free funds of economic entities into credit and investment resources. In the article the system components and the relationships between them are determined, the elements of the environment are identified and their relationship with the market for financial services described. Article is written in Ukrainian
Ivashchenko A. I.
Using Cryptocurrency in the Activities of Ukrainian Small and Medium Enterprises in order to Improve their Investment Attractiveness (p. 267 - 273)
The aim of the article is to analyze the main features of cryptocurrency with respect to the identification of main advantages and disadvantages of using cryptocurrency as a method of effecting cashless payments by small and medium enterprises in order to increase the level of their investment attractiveness. The article describes the basic characteristics of cryptocurrencies and Bitcon as the most common among them. The Bitcoin emission mechanism has been built and the dynamics of changes in the value, difficulty of its “extracting” or “mining”, the market capitalization for 2009-2016 have been analyzed. In this connection the identified main trends and the relationship between the analyzed indicators are highlighted. The attitude of the authorities of different countries to “mining” and using cryptocurrency in calculations is shown, the monitoring of leading international financial institutions in terms of the use of Bitcoinis is carried out. In addition, the leaders among the existing cryptocurrency exchanges are determined, and the level of their market capitalization is shown, a comparative analysis of the traditional currency and cryptocurrency is conducted, an assessment of financial institutions that work with Bitcoin in Ukraine is performed, the attention being focused on the main advantages and disadvantages of using cryptocurrency in small and medium business. Taking into account all the positive aspects there justified the prospects of using the presented in the article finance cryptoinstruments, in particular Bitcoin, in order to improve the investment attractiveness. Article is written in English
Pavlov R. A., Levkovich O. V.
Influence of Monetary Policy Announcements on Ukraine’s Stock Market Return and Volatility (p. 274 - 280)
The aim of the article is to assess the influence of decisions on the monetary policy on return and volatility of the Ukrainian stock market (on the basis of the representative stock index PFTS) with consideration to the phase of the financial cycle. Daily opening prices for the period of 2000-2015 are used as the initial data, on the basis of which the return of the stock index in the trading day format is calculated. Using the news about the monetary policy, the “expected” component and the component of “unexpectedness” of the announcement information context are distinguished. The analysis of the reaction of the Ukrainian stock market to the macroeconomic news about the monetary policy of the Federal Reserve System and the European Central Bank with regard to the phases of upturns and downturns of the financial cycle has been carried out. The study allows to draw conclusions about the impact of announcements about the dealing rate on the return and volatility of the domestic stock market: first, in the Ukrainian stock market the return reacts much more strongly to the announcements of the Federal Reserve System than those of the European Central Bank; second, the impact of decisions of the Federal Reserve System, being in line with the logic of risk management, is more pronounced during the downturn phase of the financial cycle. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №4-2016
Kovalenko V. M., Dropa Y. B.
Problems and Features of Forming Resources of the Ukrainian Financial System (p. 197 - 204)
The article defines the essence of financial resources of the national economy and discloses features of their formation in the process of flow of funds between the state, economic entities, households and international financial and credit institutions. The economic content of financial resources of the state is highlighted, and sources of their formation are studied; the dynamics of volumes of the budgetary fund, government borrowings and debt servicing costs in Ukraine are analyzed. The author’s understanding of the nature of enterprise financial resources is suggested, the aggregate of sources of their generation is justified, the dynamics of forming equity and total capital in domestic enterprises is assessed. The essence and role of financial resources of households in the country’s financial system is determined, the analysis of the population income, expenses and savings is performed. Using the correlation and regression analysis there investigated the relationship between the gross domestic product, budget resources, savings of citizens, government borrowings and their servicing costs. Article is written in Ukrainian
Krasnova I. V.
The Nature and Structural Regularities of Financial Integration in the Global Dimension in the Context of “Impossible Trinity” (p. 205 - 212)
The aim of the article is to determine the nature of financial integration and to justify its place in the system of measures on state regulation intended to search for a balanced model of economic growth of the country through the impossible trilemma reflecting the impossibility of simultaneous implementation of three macro-economic policies in one country, namely financial openness, monetary independence and exchange rate stability. On the basis of synthesis, analysis and comparison of different interpretations, the concept of “financial integration” is clarified. There identified signs of integration of financial markets, such as: the uniformity of rules (transparency); equal access (availability); common operating environment (involvement); equity of prices (unity); uniformity of the reaction of financial assets on the impact of external trends and news (response). The policy of financial integration, in particular its component of the free movement of capital is designed to provide additional incentives to domestic economic growth by attracting external financial resources. To stimulate the economy and prevent the unstable volatility of exchange rate, many countries seek to achieve such macroeconomic goals as openness of financial markets, independence of the monetary policy and exchange rate stability. Since the monetary authorities may choose at any moment only two of the three goals, the Mundell-Fleming trilemma determines a possibility of three different combinations of monetary targeting. At present science has not developed a unified methodological approach to determination of indices of financial integration. To assess the dynamics of financial integration the following basic indices of integration are used: KAOPEN, FINREFORM, KASHI, etc. Based on the analysis of the mentioned indices in the context of different countries, there can be made a conclusion about a possibility of combination of different policies with a tendency towards financial integration. In today’s environment it is expedient to use the policy of monetary stimulation of growth rather than support unproductive monetary contraction. The prospect of further research is working out directions of monetary policy taking into account priorities in the country’s development. Article is written in Ukrainian
Lavreniuk V. V., Shevchuk V. V.
The Nature and Assessment of Systemic Risk in Terms of Liquidity of the Banking System (p. 213 - 222)
The aim of the article is to determine the nature of systemic risk as a threat to the financial stability of the banking system and develop analytical tools to assess its impact on the banking system in terms of its liquidity. To solve the tasks assigned, there used general scientific and specific methods, such as: logical and dialectical method, mathematical and graphical one. Based on the generalization, analysis and comparison of different interpretations, there clarified the concept of “systemic risk” as a risk generated by financial institutions or individual sectors through the implementation of the mechanism of risk transmission, achieving significant scale of distribution and adversely affecting the stability of the financial system and the real sector of economy. There identified key aspects of systemic risk: a) systemic risk is not a sum of all individual risks of financial institutions; b) spreads through the channels of interconnectedness between financial institutions; c) is a result of accumulated structural imbalances; d) affects the stability of the financial/banking system, public confidence and the real sector of economy. Analytical tools for estimation of the bank’s contribution to the systemic liquidity risk on the basis of which it is determined that the first place in terms of the effect on the aggregate systemic risk of liquidity of the Ukrainian banking system is occupied by banks of Group I, the second place — by Privatbank, the third, fourth, fifth places — by banks in Group II — Oschadbank, Ukreximbank. It is found that it is systemically important state-owned banks that have a significant impact on systemic liquidity risk. It is determined that the probability of default of a leading systemically important bank could result in considerable cumulative losses for the entire banking system and real economy. The prospects of further research are the development of tools for systemic risk assessment with respect to interbank relationships. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №1-2017
Abakumenko O. V., Lukiashko P. O.
Financial Instruments: the Essence, Diversity and Role in the Process of Modernization of the Electric Power Sector (p. 320 - 328)
The aim of the article is to clarify the methodological basis for further research concerning analysis of the existing practices and development of proposals on using financial instruments for the modernization of the Ukrainian electric power sector, in particular, to clarify the definition of “financial instruments” and justify their classification, taking into account the defining characteristics. Based on the critical evaluation of various scientific approaches to interpretation of the essence of financial instruments, the author’s definition is proposed. Thus, it is advisable to consider them as means, techniques and methods of attracting financial resources (capital) from other entities and as absolutely liquid assets. The generalization and rethinking of the criteria for classification of financial instruments allowed the authors to divide them into financial assets (cash, bank metals, currency), financial obligations (equity and debt instruments), and instruments of irrevocable financial aid (charitable contributions, grants, crowdfunding, fundraising). The received methodological conclusions quite fully characterize the essence and variety of types of financial instruments, taking into account their principal properties, which will allow to make a well-considered justification for choosing the optimal instruments for the modernization of the electric power sector. Article is written in Ukrainian
Bacho R. J.
Assessing the Condition of Non-Banking Financial Services Markets According to Scenarios of the Situation Development Based on the Results of Cognitive Analysis (p. 329 - 337)
The changes in the condition of markets of non-banking financial services under the influence of state regulation instruments are investigated. As a result of using diagnostic tools for assessing the condition of markets of non-banking financial services based on forecasting scenarios of changes in the condition of the credit services market, the market of private pension provision and the insurance market, the influence of the Regulator’s activities and external factors has been evaluated and forecasted. There made a conclusion about the necessity of using the developed diagnostic tools in determining the priority of the influence of the Regulator’s activities with the aim of leveling the negative influence of external factors on the condition of markets of non-banking financial services. Article is written in Ukrainian
Britchenko I. G., Stoika V. S.
Creation of the Financial Ombudsman Institute: International Experience and Prospects for Ukraine (p. 338 - 343)
The article is dedicated to the problems of introduction of the institute of financial ombudsman in Ukraine on the basis of studying international experience. The modern development of the banking system of Ukraine is characterized by the presence of significant losses, the outflow of deposit funds of individuals, the growth of inflationary pressures, the reduction in the number of banking institutions, and the decrease in the level of confidence in them among the population. These factors among others have led to a considerable number of litigations between banks and their clients. This situation forces the banks to find effective ways to solve the problem. In the world practice the institute of financial ombudsman serves this purpose. The conclusion is made that the activity of the institute of the financial ombudsman occurs within the framework of a clearly defined legislative field, which in a generalized form is represented by the British and German models. The main difference between these models of the financial ombudsman lies in the status of this institute in different countries. But their common characteristics are the respect for clients, the possibility of voluntary appeal to the ombudsman, a short period of considering the matter, the lack of payment for ombudsman services. The necessity of establishment of the institute of alternative resolution of disputes in the sphere of financial services in the form of financial ombudsman in Ukraine is justified. Its creation will improve the quality of financial market regulation, increase the level of public confidence in financial institutions, strengthen financial discipline, reduce the load on law courts, increase the transparency and openness of the financial market. The financial ombudsman should complement the work of other financial market regulators but at the same time remain an independent and free-standing body. In modern realities of development of Ukraine, a necessary task is the development and adoption of a special law that would regulate the process of creating and operating the financial ombudsman in our country. Article is written in Russian
Dunas N. V.
Development of Communication Strategies for the Marketing of Electronic Banking Services for Individuals (p. 344 - 350)
The main aim of the article is to study the trends in the development of communication strategies for the marketing of electronic banking services for individuals by studying the foreign experience in Digital Banking, as well as the situation in the Ukrainian banking market. There offered a comparative characteristic of banking systems of electronic banking services for clients with the purpose of working out flexible methodological approaches for the development of marketing communication strategies for remote client servicing. The characteristic features of electronic banking services and technologies in Ukraine are determined. Comparative evaluation of positive aspects and risks of remote electronic banking systems for banks as well as their client segment is conducted. Analytical aspects of the sociological survey of European banks regarding the selection of the most important priorities of the marketing strategies of financial institutions for 2017 are presented. Also the main factors determining the development of marketing communications of banks and their clients in the field of electronic payments both in Ukraine and abroad are identified. Modern directions of development of communication strategies of marketing of electronic banking services for individuals in Ukraine are proposed. Article is written in Ukrainian
Prykaziuk N. V., Yankovskyi D. V.
Approaches to Formation of Technical Reserves of Insurance Organizations: Domestic Realities and International Requirements (p. 351 - 356)
The aim of the article is to study approaches to formation of insurance reserves by insurance companies in Ukraine and the world. The essence and peculiarities of the formation of reserves by insurance organizations in Ukraine are investigated. The provisions of the Solvency II Directive in terms of formation of reserves and financial stability in insurance organizations are considered. A comparative characteristic of the requirements for the solvency of insurers in accordance with the legislation of Ukraine and the requirements of Solvency II is presented. Differences in methods of formation of technical reserves by insurance organizations in Ukraine and the world are determined, factors affecting it are indicated. Methods of formation of insurance reserves in the countries of the European Union are considered. The directions of improving the process of formation of insurance reserves of the insurer are justified. The problems of introducing the experience of foreign countries and Solvency II requirements are analyzed taking into account the realities of the domestic insurance market. The strengths and weaknesses of the introduction of Solvency II in the Ukrainian insurance market are explored. Article is written in Ukrainian
Chunytska I. I.
The Role of Infrastructure Potential of the Financial Market in Ensuring its Flexibility and Security (p. 357 - 365)
The article is dedicated to determining the role of infrastructure potential of the financial market in ensuring its security and flexibility. The aim of the article is to assess the role of infrastructure potential of the financial market in ensuring its flexibility and security. Threats to the financial market security are systematized by sources of formation, scale, duration and nature of influence. The essence of security and flexibility of the financial market is defined. There systematized indicators of security and flexibility of the financial market in interrelation with the components of infrastructure potential of the financial market. The methodology for determining the level of economic safety and flexibility of the financial market is substantiated, the corresponding calculations are made. Also the methodology for calculating the normalized index of the infrastructure potential of the financial market is developed. The correlation-regression analysis of the connection between development of the infrastructure potential of the financial market, its security and flexibility is carried out. The results of the calculations showed that the degree of implementation of the financial market infrastructure potential at the current stage of development of the Ukrainian economy is insufficient. It does not contribute to achieving the necessary level of flexibility and security of the financial market. Each of the components of infrastructure potential requires changing approaches to regulation aimed at ensuring the systematic development of the financial market. Most of the identified problems are mainly related to dysfunctionality of the technological and information components of the infrastructural potential of the financial market. This is manifested in the low level of confidence in it from the part of the household sector as well as in the poor efficiency of regulation of certain segments of the financial market. That is why the prospects for further research are to identify areas for increasing the role of technological and information components of the infrastructure potential of the financial market. Article is written in Ukrainian
Shkarlet S. M., Dubyna M. V.
Application of the Turbulence Approach to Knowledge of the Current State of Financial Services Markets (p. 366 - 372)
The article presents the results of studying the turbulent approach to knowledge of the current state of the financial services market (FSM). In particular, there justified the expediency of using this approach through stating the presence of a considerable number of processes that emerge spontaneously and are difficult to anticipate in the economic development of Ukraine in recent years. The article substantiates the author’s position regarding the interpretation of the essence of the turbulent approach, describes the method of its use. Operating by the nature of the turbulent approach there identified the main turbulent processes that occurred in the development of the FSM and had a negative impact on it. These processes have been described and discussed in detail. Particular attention is paid to the influence of such processes on the overall development of the financial services market. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №2-2017
Bezrodna O. S., Lesik V. O.
Theoretical and Methodological Aspects of Assessing the Financial Stability of the Banking System (p. 251 - 263)
The aim of the article is to substantiate the directions and develop methodological tools for assessing the financial stability of the banking system. Taking into account the emergence character of the banking system as a complex systemic formation and the results of the analysis of scientific literature, arguments are given regarding the need to assess its financial stability using the following groups of indicators: intensity of the credit and financial interaction in the interbank market; functional load of the banking system in the context of ensuring macroeconomic development; structural changes and financial imbalances in the banking system and the activity of systemically important banks. There proposed a methodological approach to assessing the financial stability of the banking system, which implies quantitative integral assessment of its level and qualitative interpretation of the results using the methods of entropy and “golden section”, respectively. The application of the improved approach will allow identifying sources of risk distribution in the banking system and develop a set of effective regulatory measures in accordance with a certain level of its financial stability. Prospects for further research in this direction are to determine the dominants of ensuring the financial stability of the banking system as well as the threshold values of its assessment indicators, which serve to diagnose the crisis and can be used as a tool for the macro-prudential policy. Article is written in Ukrainian
Yermak S. O., Kostakova L. D., Plotnitskaya V. V.
Innovative Forms of Financing the Creation and Development of Small Business (p. 264 - 269)
For small enterprises, unlike large ones, the issue of fundraising emerges both in the process of their creation, development and current activity. Small enterprises are experiencing quite a high demand for additional sources of financing. The aim of the research is to study innovative forms of financing the creation and development of small enterprises, their advantages and disadvantages. At present in addition to traditional ways of raising capital, such as bank loans or public offering of shares among external investors (IPOs), there exist a number of alternative options. Among them the most common are grants, international programs, loans from international banks and financial institutions, such as EBRD (European Bank for Reconstruction and Development), IFC (International Finance Corporation), NEFCO (Nordic Environment Finance Corporation), KfW (Kreditanstalt f?r Wiederaufbau), fundraising, crowdsourcing, crowdfunding, and angel investment. The article studies in detail the last two ways of financing: their essence, components, positive and negative features, experience of application in Ukraine and the world. The research shows that crowdfunding is suitable for business development at the early stages, that is, for those enterprises that require, for example, to complete prototyping and start mass production of their first product. Business angels can be a good choice for enterprises that already have a permanent customer base and want to grow their business. Article is written in Ukrainian
Kravchuk I. S.
The EU Capital Markets Union and Financial Stability (p. 270 - 275)
The aim of the article is to study the processes of formation of the EU Capital Markets Union in the context of their influence on stability of the markets and the financial system as a whole. In the course of analyzing the project for the building of a single capital market with respect to financial stability, there determined its positive aspects as well as threats and challenges associated with simplification of information requirements to the prospectus of public offering of securities, low liquidity and higher volatility of the equity markets of small and medium-sized businesses, reduction of the regulatory requirements to investment firms (securities traders), correction of prudential norms for infrastructure investments of banking institutions and insurance companies, introduction of a simple, transparent and standard securitization, a secondary market for distressed banking assets, and a potential spread of financial instability at cross-border investments in securities. Article is written in Ukrainian
Otlyvanska G. A.
The Prospects and Possibilities for Using Crowdfunding in the Investment Activity of Ukrainian Enterprises (p. 276 - 281)
The aim of the article is a comprehensive study of the possibilities and prospects for using crowdfunding as an instrument for financing the investment activities of Ukrainian enterprises based on analysis, synthesis and systematization of publications of domestic and foreign scientists, as well as practitioners. The article presents statistical data characterizing the dynamic development of crowdfunding in the world, the growth of interest of business in its application. Types of crowdfunding are characterized, and also signs of their allocation are defined. The main characteristics of crowdfunding platforms are formulated for choosing a platform for implementing an investment solution. The advantages and disadvantages of crowdfunding as an instrument for financing the enterprise investment activity are summarized, and prospects for its development in Ukraine are outlined. Article is written in Russian
Chunytska I. I.
Measures to Prevent Financial Fraud and Legalization of Illicit Funds (p. 282 - 291)
The problems of preventing financial fraud and legalization of funds using mechanisms of the financial market are considered. The relevance of this problem in general and peculiar features of its research in developing economies are substantiated. The experience of organizations created to prevent the legalization of illicit funds is studied. It is determined that new organizations are created in response to the global challenges. It is justified that in Ukraine the fight against the legalization of illicit funds has actualized due to a lack of financial resources in the country, declaration of course towards European values and also as a result of the military conflict in the east of the country. The risk factors for financial fraud and illegal movement of financial flows are systematized according to the groups of conditions: pressure, favorable situation, propensity (justification). It is determined which levels of risk of generating illegal financial flows are inherent in different sectors of the economy depending on institutional factors. It is argued that the increase in the risks of illegal financial flows occurs under conditions of a low level of maturity of the institutional environment and a high level of information asymmetry. Types and tools of fraud in the financial market that increase the risks of illegal financial flows are systematized. It is determined that main types of fraud in the financial market are related to information manipulations and regulatory deficiencies. The world experience of legislative initiatives on counteracting the legalization of funds in financial markets is systematized. It is justified that, in order to prevent financial fraud and prevent legalization of illicit funds in Ukraine, it is necessary to ensure maximum transparency of information on the movement of financial flows in financial markets. In addition, regulators of the financial market should not only cooperate with each other but also prevent cases of evasion from punishment for fraud in financial markets or participation in schemes for the legalization of illicit funds. Article is written in Ukrainian
Sholoiko A. S.
Professional Appraisers of Risks and Losses in the Insurance Market Infrastructure of Ukraine (p. 292 - 297)
The aim of the article is to elucidate the main differences between certain types of professional appraisers of risks and losses in the insurance market infrastructure of Ukraine. Analyzing and summarizing the provisions of regulatory legal acts and the results of researches by leading scientists in the field of insurance, it is determined that the range of functions of the underwriter at the stage preceding the conclusion of the insurance contract are somewhat wider than those of the surveyor, and the range of functions of the emergency commissioner at the stage of settlement of the insured event are wider than those of the appraiser, the average adjuster and the adjuster. Taking into account that professional appraisers of risks and losses as well as actuaries are responsible for the appraisals and recommendations provided by them, it is advisable to insure their professional responsibility. It is found that the number of certified emergency commissioners and actuaries is low in Ukraine, which requires further stimulation of the development of the insurance market infrastructure in terms of these components. Due to the fact that the work of the surveyor and adjuster is not legally regulated in Ukraine, these issues constitute prospects for further researches in this area. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №3-2017
Veriga A. V., Ragulina N. V.
The System of Local Finance as an Aggregate of Socio-Economic Relations under Conditions of Decentralization (p. 242 - 247)
The aim of the article is to identify the structural features of the local finance system as an aggregate of socio-economic relations under conditions of decentralization. The features of formation and development of the local finance system are analyzed. It is noted that the main place in the system belongs to local budgets as an important tool for the development of the socio-economic sphere. The importance of local finance in the formation of financial resources of local authorities under conditions of decentralization is studied. The shortcomings of the national budgetary policy at the local level are revealed. It is substantiated that the budgetary policy at the local level should be aimed at achieving an optimal balance between its economic and social aspects. Recommendations for improving the regulatory framework for the development of the finance system of the local self-government in Ukraine under conditions of decentralization are proposed. The need for providing access of the public to information and to participation in solving these issues is grounded. Article is written in Ukrainian
Hladkykh D. M.
Rehabilitation of the Banking System as a Key Factor in the Resumption of Corporate Crediting in Ukraine (p. 248 - 253)
The aim of the article is to study the factors of negative dynamics of corporate crediting in Ukraine and justify proposals for further actions of the state in the direction of activating corporate crediting. The actions of the state in the field of activation of corporate crediting in Ukraine should include the steps mentioned below. As part of the overall rehabilitation and recovery of the economy – actions aimed at de-shadowization of the economy; restoration of foreign exchange earnings from exports; stimulation of timely return of the currency of exporters to the country. Within the framework of resolution of the bank’s non-performing corporate credit portfolio – establishment of a state company for the management of either distressed assets or a single remedial bank that is to accumulate non-performing credits. Within the framework of rehabilitation and post-crisis recovery of the banking system — completion of the procedure for removing problem banks from the market; bringing the capital adequacy ratio of the banking system in line with the requirements of Basel III; creation of a mechanism for structural refinancing, introduction of new instruments to stimulate bank crediting of enterprises in the real economy, etc. Within the framework of minimizing the current high level of inflation, which hinders the activation of corporate crediting – gradual decrease in the discount rate; ensuring a positive level of NBU interest rates relative to the forecasted core inflation; further accumulation of international reserves, etc. Within the framework of minimizing the budget deficit and limiting the issue of government bonds and deposit certificates of the NBU as instruments that divert banks’ credit resources from corporate lending – reducing the state budget deficit; decrease in banks' demand for government securities by reducing their profitability. Article is written in Ukrainian
Kornіvska V. O.
Digital Banking: Risks of Financial Digitalization (p. 254 - 261)
The paper demonstrates the results of the research into development of the digital economy in the global financial space, shows the contradictions of these processes in the context of the growth of financial inclusion of households, identifies the risks of active introduction of digital banking in poor countries of the world. The characteristics of the processes of growth of the influence of banking institutions on the operational activity and daily life of households are given, and it is proved that under conditions of digital banking, without having any other alternative ways of economic activity in terms of money circulation than non-cash turnover, clients are forced to agree to unlimited presence of financial operators in social systems. It is substantiated that in Ukraine the global risk of digitalization of the society is gradually developing as a result of the creation of unified information systems for the control of global financial flows. Article is written in Ukrainian
Omelchenko L. S., Laktionova O. E., Desyatsky S. P.
The Dynamics and Trends of Development of Financial Services Outsourcing in the Global and Supranational Markets (p. 262 - 268)
The increase of efficiency and productivity, reduction of costs on the process of financial management of business entities using financial services outsourcing, services of financial outsourcing as segments of the international market of intellectual services, is a relevant research topic for the development of Ukraine’s economy. To determine the trends, advantages and disadvantages of this financial tool in the global and regional markets — America, EMEA, Asia (2006-2015) — mathematical methods were applied. There obtained equations of the most suitable trend lines of the considered values, which showed that the advantage in terms of costs of outsourcing contracts belongs to the segment of financial services outsourcing. Despite the existing potential, companies-outsourcers in Ukraine are not represented in this market for intellectual services either as customers or as executors of financial services. It is necessary to develop methodological and methodic recommendations for increasing the activity of Ukrainian outsourcing companies in the international market for financial services outsourcing. Article is written in Russian
THE PROBLEMS OF ECONOMY №4-2017
Vartsaba V. I., Mostipaka O. V.
Alternative Monetary Systems in the Context of Managing the National Economy (p. 351 - 362)
The aim of the article is to investigate alternative monetary systems, each of which can be an algorithm for managing the national economy. By analyzing, systematizing and summarizing the scientific works of both foreign and domestic scientists, it is established that money is a phenomenon capable of managing the socio-economic relations in the time and space development coordinates following the institutionalized functioning algorithms. There justified the informational nature of money, i.e., that money is artificial information, a peculiar way of understanding social and economic relations, since the monetary subsystem is algorithmizing social and economic relations and is a derivative of the functioning and development of the national economy. The effectiveness of the national currency depends on the built-in algorithms of its functioning, which are realized in the model of the national economy. The study reflects the basic variations of potential alternative monetary systems. In particular, world money, the issuers of which are highly developed countries; S. Gesell’s “free money”; S. Sharapov’s “absolute money”; money secured by commodity values; private money; virtual money — electronic money and crypto currency, etc. Given that the socio-economic system of Ukraine as a synergetic system have been in a state of bifurcation for a long time, the article considers and proposes the most effective way of the development and functioning of the monetary system in the context of a harmonious interrelations with the national economy in time and space coordinates by direct emission of money for innovative projects of development of the national economy. Prospects for further research are the trans-scientific paradigm of managing the national economy. Article is written in Ukrainian
Kremen V. M., Ohol D. O.
Financial Sector Stability: Essence and Assessment (p. 363 - 368)
The article investigates approaches to the interpretation of the notion “financial stability” and the features of its assessing as an important instrument of macroprudential financial supervision. It is emphasized that the existing tools for assessing the financial sector stability have their advantages and disadvantages, which are defined by the authors. In the paper there applied the method of convolution of criteria to assess financial stability in Ukraine. The calculation of the composite indicator is based on values of financial soundness indicators determined by the IMF, which for the purpose of the research are divided into three groups. As a result the indicator of financial stability includes the components of capital adequacy, credit risk and liquidity. It allows using the regression procedure for evaluation of the influence of these components on financial stability of the country. The interpretation of the results indicate that raising the level of financial stability in Ukraine requires, first, improving approaches to managing credit risk, then increasing liquidity rates and, ultimately, improving the capital adequacy of financial intermediaries. Article is written in English
Nesterenko O. O.
Methodological Bases for Describing Risks of the Enterprise Business Model in Integrated Reporting (p. 369 - 375)
The aim of the article is to substantiate the methodological bases for describing the business and accounting risks of an enterprise business model in integrated reporting for their timely detection and assessment, and develop methods for their leveling or minimizing and possible prevention. It is proposed to consider risks in the process of forming integrated reporting from two sides: first, risks that arise in the business model of an organization and should be disclosed in its integrated report; second, accounting risks of integrated reporting, which should be taken into account by members of the cross-sectoral working group and management personnel in the process of forming and promulgating integrated reporting. To develop an adequate accounting and analytical tool for disclosure of information about the risks of the business model and integrated reporting, their leveling or minimization, in the article a terminological analysis of the essence of entrepreneurial and accounting risks is carried out. The entrepreneurial risk is defined as an objective-subjective economic category that characterizes the probability of negative or positive consequences of economic-social-ecological activity within the framework of the business model of an enterprise under uncertainty. The accounting risk is suggested to be understood as the probability of unfavorable consequences as a result of organizational, methodological errors in the integrated accounting system, which present threat to the quality, accuracy and reliability of the reporting information on economic, social and environmental activities in integrated reporting as well as threat of inappropriate decision-making by stakeholders based on the integrated report. For the timely identification of business risks and maximum leveling of the influence of accounting risks on the process of formation and publication of integrated reporting, in the study the place of entrepreneurial and accounting risks in the business model of the enterprise is determined. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №1-2018
Demyanchuk M. A., Osipova M. S.
The Corporate Income Tax as a Set of Levers to Influence Enterprise Development (p. 287 - 293)
Effective functioning of the tax system is one of the main and determining components of the state activity. Taxes are one of the tools for withdrawing a part of the income of legal entities and individuals, among which the corporate income tax (CIT) is of particular importance. With the help of this tax, the state can stimulate the revival of investment and innovation activities, as well as the development of competitive relations. Therefore, the aim of the article is to study the corporate income tax as a set of levers to influence enterprise development. The article substantiates that the CIT presents a system of levers to influence enterprise development: 1) as a fiscal lever, it should be considered in terms of its capacity to fill the budget, since it is an important fiscal tool in the public finance system of each country; 2) as an economic lever, it provides for the possibility of certain manipulative actions with the tax base by using accelerated depreciation; 3) as an investment lever, it should be considered as a means to influence the resolving of economic aspects concerning sources of attraction of investments to an enterprise; 4) as an information lever, it is one of the components of integrated changes in the sphere of taxation and indicates the effectiveness of the government activity and further consequences of implementing the state policy in the sphere of business; 5) as a tax culture, it assumes the consciousness of business entities in paying taxes to the state budget; 6) as a social lever, it provides for an effective implementation of certain changes in taxation, which contribute to positive social consequences, thereby bringing the country’s economy to a new, more effective level. Applying a synergistic approach to the system of CIT levers, it is quite possible that the enterprise can achieve qualitative development, raise its level in the general state sphere as an attractive investment object for domestic and foreign citizens. Article is written in Ukrainian
Lysiak L. V., Hrabchuk O. M.
Strengthening the Budgetary Potential of Local Budgets in Ukraine in the Context of Financial Decentralization (p. 294 - 299)
A real financial decentralization should contribute to strengthening the budgetary potential of local budgets as the basis and necessary condition for the socio-economic development of administrative-territorial entities. The aim of the article is to analyze the budgetary potential in the context of financial decentralization and identify ways of its strengthening for the development of regions of Ukraine. The economic essence and components of the budgetary potential of local budgets are considered. To date, the basis of a modern regional development strategy should be creating conditions for maximum use of the existing budgetary potential, which plays a decisive role in the performance by local authorities of the functions and powers assigned to them in accordance with the Constitution and Ukrainian legislation. The analysis of the main components of the budgetary potential of local budgets is carried out, and the directions for their realization in a greater degree are outlined. Recommendations for strengthening the budgetary potential in the context of deepening the financial (budgetary) decentralization are developed. Article is written in Ukrainian
Nikitishin A. О.
The Adaptive and Coherent Institutional Architectonics of Tax Regulation (p. 300 - 307)
It is determined that insufficient attention has been paid to the disclosure of the content of the adaptive and coherent institutional architectonics of tax regulation, and, therefore, this direction of scientific and practical research is relevant. It is proved that the adaptive and coherent institutional architecture of tax regulation is based on the system of tax regulation ensuring the adequacy and connection of regulatory measures with the economic and social development of a country by achieving and maintaining the most optimal relationships between the elements of this system. The adaptability and coherence of institutional architectonics of tax regulation in the process of implementing the Strategy of Sustainable Development “Ukraine — 2020” is revealed. The consequences of the imbalance in the development of institutional architectonics of tax regulation and examples of institutional gaps are shown. The effect of attractors and repellers on business and the development of institutional architectonics of tax regulation is disclosed. The analysis of institutional indicators of attractors and repellers of the current tax regulation policy is carried out taking into account the geopolitical position of Ukraine in the context of international tax competition. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №2-2018
Dub A. R.
Real Estate Taxation: World Experience and Situation in Ukraine (p. 296 - 303)
The share of the tax on real estate, other than land plots, in tax revenues of local budgets in Ukraine is much lower than in other countries around the world. The aim of the article is to identify, on the basis of analysis of the world experience in real estate taxation, the problems related to the small share of the tax on real estate, other than land plots, in local budget revenues in Ukraine, and to find possible solutions to them. The carried out analysis of the significance of the tax on real estate, other than land plots, in tax revenues of local budgets and in the group of property taxes in countries of the world revealed that the real estate tax is an important source of financial resources at the local level in many foreign countries. The expediency of levying the tax on real estate is justified. Approaches to the establishment of the real estate base are described; their advantages and disadvantages are highlighted. The powers of local self-government bodies to define the tax base, establish tax rates and privileges are characterized. Features of the Ukrainian system of taxation of real estate, other than land plots, are given. There estimated the amount of the tax on real estate, other than land plots, in the tax revenues of local budgets in Ukraine. It is revealed that the incompleteness of the State Register of Rights to Real Estate, the lack of a tax base close to the market value and the political will of local governments on enhancing measures to increase revenues from real the estate tax are the main reasons for the insignificant role of revenues from the real estate taxation in tax revenues of local budgets in Ukraine. The proposed ways to increase revenues to local budgets from the real estate taxation by taking inventory of all real estate and making changes in the mechanism of tax administration, in particular, the tax base and rates. Article is written in Ukrainian
Zarutska O. P.
The Justification of the Possibility for Introducing a System for Analyzing a Regulated Stock Market (p. 304 - 309)
The article presents the justification of the need to introduce an analysis system into the activity of a regulated stock market in order to reveal facts of manipulation. In this aspect, the possibilities of mathematical grouping of homogeneous elements of complex economic systems to analyze and monitor their state are presented. The formation of structural and functional groups is carried out using a neural network model of clustering — Kohonen self-organizing maps. The proposed methods of structural and functional groups have already been used for conducting an early diagnosis of financial stability of banks and classifying their business models. The relevant tools are proposed to be distributed for the analysis and monitoring of a stock market in order to identify transactions with an increased risk of manipulation. An effective and objective monitoring of any market segment requires identifying high-risk objects and using modern methods for processing report data. Stability of the market development is largely determined by the existence of clear rules and understandable restrictions brought to the notice of market participants. To properly perform the functions of the state regulator of a stock market, there needed methodological developments that determine the conditions for control, application of measures of influence, sanctions for violations. Transparent and unambiguous formulations of conditions create the necessary basis for coordinated work of market participants. The development of appropriate tools requires modern mathematical methods, including the use of the method of structural and functional groups. Article is written in Ukrainian
Ilchuk V. P., Shpomer T. O.
Financial Support for Sustainable Development of Enterprises in the Real Sector of the Economy (p. 310 - 316)
The role and importance of financial support in the development of public production are revealed. A retrospective review of definitions of the concept “financial support” is given. Proceeding from the systems analysis of the concepts considered, the authors’ interpretation of this concept, based on formalization of the stages of the financial security process, is proposed. There considered components of the potential of financial support, which contribute to meeting the needs to finance investment and innovation projects. A scheme of the general approach to the process of financial support at various socio-economic levels of the economy is proposed, including the definition of policy of financial support for the industry, region, country; the development of a strategy as a system of measures to realize the general direction of investment support within the framework of the investment policy; the development of a financial support mechanism that includes consistent practical actions to find, attract and use financial resources. The criteria for assessing financial support for the reproduction of fixed assets of manufacturing enterprises are determined. Article is written in Ukrainian
Krivtsova Т. О., Liadova Y. O.
Trends in the Development of Audit of Public Finances in the Context of Reforming the System of Public Financial Control (p. 317 - 327)
The aim of the article is the theorizing of trends in the development of audit of public finances in the context of reforming the system of public financial control in Ukraine and providing practical recommendations to improve the efficiency of the system of public financial control, taking into account the trends in the development of audit of public finances in Ukraine. In the article there used such research methods as induction and deduction, analysis and synthesis, methods of establishing causation, statistical analysis method. The analysis and research of regulatory legal acts, as well as the results of the activity of the State Audit Service of Ukraine, made it possible to determine the methodology and staffing related directions of reforming the system of public financial control in Ukraine. Measures on the introduction and development of audit of public finances in the activity of public sector bodies and the State Audit Service are planned and the achievements systematized. Based on the analysis of scientific works on the problem and the relevant domestic and international legislation, the classification of audit of public finances as a form of public financial control in the context of reforming the system of public financial control is generalized. There substantiated the directions for increasing the efficiency of the functioning of the system of public financial control, with regard to the trends in the development of audit of public finances in Ukraine. Practical realization of the trends in the development of audit of public finances, determined by the authors of the article, will make it possible to increase the effectiveness of reforming the system of public financial control, which in turn is the determining factor in the reform of the public financial management system, and hence the financial security of the state. In this regard, it is appropriate to focus the further work on studying the best practices of developed countries and world trends in the field of audit of public finances by supreme audit institutions. Article is written in English
Kuzkin Y. Y.
Formation of the Fiscal Space of Local Self-Government in the Context of Decentralization of Public Finances (p. 328 - 334)
The aim of the research is the theoretical substantiation of the structure and the definition of the peculiarities in forming the fiscal space of local self-government in the context of decentralization of public finances. The main approaches to identification of the essence of fiscal space are determined, including the targeted, quantitative, resource, expenditure, efficiency, dynamic, institutional one. The prerequisites for local authorities to achieve real subjectivity in the fiscal sphere as part of the process of decentralization of public finances and reform of the system of interbudgetary relations in Ukraine are established. There proposed the definition of the essence of the fiscal space of local self-government as a set of economic processes and economic relations localized within a certain territory, the results of which, within the framework of fiscal mechanisms of the state, determine, based on developing and implementing active fiscal policy, the financial potential that can be used for implementing by self-government authorities at the local level a range of solutions in the field of regional development in compliance with the requirements and restrictions concerning the preservation of financial sustainability of the state and its regions. Furthermore, there presented an approach to the structuring of the fiscal space of local self-government. It is proved that the formation of the fiscal space of local self-government is a complex sequence of the deployment of economic phenomena and processes, in the course of which the formation of fiscal capacity, budgetary capacity takes place. Article is written in Ukrainian
Lukiashko P. O.
The Experience of Using Financial Instruments for the Modernization of the Electric Power Sector by the Countries of South Asia (p. 335 - 343)
The aim of the article is to summarize the experience of countries of South Asia regarding the introduction of financial instruments for the modernization of the electric power sector. The data on the use of financial instruments for the modernization of the electric power sector by the governments of countries of South Asia are systematized. Along with the grouping of financial instruments by countries, the transformation of the structure of electricity generation in terms of primary sources for 2000-2015 is assessed as well. As a result of the study, there made a conclusion about the determining role of objective factors of a country’s economic development in the technological transformation of its electric power sector. The factors include the lack of investment resources, failure to meet demand, unreliability of the most widespread sources of renewable energy (sun and wind) in the region in terms of power generation stability. Under current conditions, the actions of governments regarding the introduction of financial instruments to stimulate the modernization of the electric power sector are of secondary importance. Article is written in Ukrainian
Tomniuk T. L.
Financial Regulation in the Leading Economic Theories of XX-XXI Centuries (p. 344 - 349)
The aim of the article is to determine the place of the state financial regulation in the postulates of the basic economic theories of XX-XXI centuries. There carried out an analysis, systematization and generalization of scientific works of outstanding scientists — founders and representatives of various directions of the economic theory of XX-XXI centuries — about the participation of the state in the regulation of economic development. The main postulates of state regulation of the economy in such concepts as Keynesianism, monetarism, the supply theory, institutionalism are singled out. It is substantiated that the state participation in redistribution processes through using financial instruments is defined practically in all economic theories, however, with the levels of domination and efficiency as an instrument for providing economic reforms being different. The wide use of financial levers for stabilizing the economic situation, smoothing cyclical fluctuations, maintaining high growth rates and high employment in the Keynesian model, the supply theory, institutionalism are demonstrated. The non-recognition of financial policy as a means to stabilize the economy by monetarism is testified. It is concluded that there are advantages and disadvantages in financial regulation of the economy in each of the economic theories under consideration. It is determined that the predominance of this or that concept depends on the general economic policy of the state and the goals of state regulation. It is argued that in the recent history of Ukraine’s financial policy, the approaches determined by the supply theory dominate, in particular since the entry into force of the Tax Code of Ukraine, the amount of taxes and fees has been reduced, the income tax rate and the single contribution to the compulsory state social insurance have been reduced. Prospects for further research in this direction are defining the economic doctrine of Ukraine and effective instruments for financial regulation of the economy to ensure economic growth. Article is written in Ukrainian
Khomutenko А. V.
Methodological Tools for Managing Public Finances (p. 350 - 356)
The aim of the article is to improve the theoretical and methodological bases of public financial management by streamlining and enriching the methodological tools for its purposeful impact. With this regard, there defined the content of the term “mechanism for managing public finances“ as a system of public financial management in operation. This allowed for focusing the research on one of the elements of the system — management activities implemented through the application of certain methods and tools. A theoretical distinction of the terms of “method” and “tool” is carried out, which enabled streamlining the main methods and tools for managing public finances. The author proposes the methods to be grouped by classical functions of management, and tools — in view of the component of public finances. A suggestion is made that as a result of ineffective management of public finances, there formed a stable tendency to increasing budget deficit, which is covered by issuance and / or state borrowings. The latter ones, in turn, lead to the formation of public debt, and the correct choice of management tools will ensure its reduction or controlled rational growth. The necessity of applying modern tools in managing public finances is justified (e.g., financial logistics, reengineering, benchmarking, etc.), which will improve the effectiveness of the management mechanism. Due to the disclosure of the essence of innovative tools for managing public finances, their possible positive impact on the management system as a whole is argued. It is believed that the use of the developed methodological tools in managing public finances will help to improve the level of satisfaction of public interests. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №3-2018
Gonta O. I., Prokopenko V. Y., Dubyna M. V.
The Role of the Deposit Guarantee System in Raising the Level of Public Confidence in Depository Institutions (p. 178 - 183)
The main aim of the article is to study the essence of the deposit guarantee system and determine its role in increasing the level of public confidence in depository institutions. The issues of development of the deposit insurance system in Ukraine are considered, its main elements are defined, in particular, the deposit guarantee system and the voluntary deposit insurance system. The features of their functioning are analyzed. Furthermore, it is found that in the domestic market of deposit services the leading role in ensuring the return of funds to citizens is played by the system of individual deposit guarantee. It is established that the main subject of the system is the Deposit Guarantee Fund for Individuals, which implements the government policy in this area. The article analyzes the current trends in the operation of the Fund and, in general, the entire system of deposit guarantee. This made it possible to determine the key problems in the work of the system and the direction for its further transformation. Article is written in Ukrainian
Zhavoronok A. V.
Trends in Development of the Deposit Market in Ukraine (p. 184 - 190)
The aim of the article is to study the main trends in the development of the deposit market in Ukraine and define its development prospects. To achieve it, the current situation in the deposit market in Ukraine is analyzed, and the peculiarities of its functioning are determined. It is established that at the present stage an important role in ensuring the stable and effective functioning of banks in Ukraine is played by the formation of a scientifically based banking policy, the main component of which is the deposit policy. It is substantiated by the fact that one of the main tasks of banks is the creation of a resource base, which is formed by deposits of the population and ensures financial sustainability and stability of a banking institution. The current problems of development of domestic banking institutions are identified. Based on the analysis of the state of deposit resources of commercial banks, it is established that there is a positive trend towards an increase in the amount of attracted deposits from both individuals and legal entities. In 2016, the share of deposits of individuals amounted to 50.7 %, which demonstrates a tendency to increase in the share of deposits compared with 2014–2015. In 2016 the share of deposits placed by legal entities was 50.7 %, fixed deposits dominating by term of attraction. The deposits of legal entities were mainly placed in national currency, deposits of individuals — in foreign currency. The complex of measures aimed at supporting the steady state of domestic financial and credit institutions is considered. Article is written in Ukrainian
Kaneva T. V., Ruban M. O.
Evaluation of Taxable Capacity of an Administrative-Territorial Unit (p. 191 - 200)
The aim of the article is the revealing of the essence of taxability capacity of an administrative-territorial unit, further development of the methodological basis for assessing taxable capacity of local budgets in the context of fiscal decentralization. The typical domestic and foreign methodological approaches to defining taxable capacity and indicators of taxability of a budget are analyzed. The role of tax instruments in the development of territories is characterized as a system of fiscal mechanisms for pumping up, stimulating and / or restricting the budget, which are implemented in order to provide financial support for the development of relevant entities and the overcoming of their undesirable economic divergence. There proposed provisions for assessing taxable capacity of territories on the basis of an additive model that combines the capacity of local taxes and fees. The potential growth of revenues from personal income tax, tax on real estate other than land plots, land tax, rent, single tax is investigated. The implicit rate of the personal income tax in Ukraine and Kiev is estimated, some features and reasons for the differentiation of these values are determined. The features of the impact of the personal income tax in terms of proportional distribution between the state and local budgets are identified. The limits of growth of tax revenues to local budgets and factors influencing them are determined. The observance of the principles of continuity, complex adaptability, stability, and logical consistency for the purpose of harmonizing redistributive processes at the level of local budgets is proposed. The priority directions for increasing the level of taxability of the budgets of administrative-territorial units in the context of further institutional transformations of the domestic budget system are substantiated. Article is written in Ukrainian
Pasichnyi M. D.
Priorities for Improving the Efficiency of Budget Expenditures (p. 201 - 209)
The aim of the article is to determine the nature of and justify the priorities for improving the efficiency of budget expenditures in the context of institutional changes in the government finance system. It is proposed to consider the category of cost-effectiveness in the context of fulfilling the objectives of fiscal policy, in particular, those concerning ensuring macroeconomic stability and creating incentives for economic growth, and of results achieved in improving the welfare of the population. An analysis of the trends in changes of the share of expenditures of the consolidated budget of Ukraine as a percentage of GDP for the period from 1992 to 2017 is carried out. The average forecast of this indicator for 2017–2021 is presented. It is identified that in the period of economic growth, the domestic budget policy was pro-cyclical in nature. The increase in expenditure weights was carried out without systemic institutional changes in government finance, which affected the decrease in cost-effectiveness and unbalanced the budget system in the following budget periods. The importance of fiscal decentralization in ensuring the growth of the overall level of budgetary performance is substantiated. The directions for improving the efficiency of budget expenditures on education and science, health care, social protection, and social security are proposed. The necessary changes in the functioning of the higher education system are modernizing the financial basis to conduct scientific research and implement their results in the educational process; focusing on the applied aspects of studying a specialty; developing mechanisms to assess the quality of higher education; providing financial independence to educational institutions. Important aspects of the public policy are the further introduction of the insurance and fee-for-service medicine on the basis of co-financing; compiling of the basic list and standards of relevant medical services guaranteed by the state, financed by the budget. In the field of social protection, it is advisable to develop tools to ensure the targeting of the benefits provided and streamline the categories of recipients. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №4-2018
Andrushkiv I. P., Nadiyevets L. M.
Digitalization in the Banking Sector: International and Domestic Practices (p. 195 - 200)
The aim of the article is to study the international and domestic practices of using digitalization in the banking sector. The experience of building an information society in Estonia is investigated. The reasons for the active digitalization in the banking sector of the Ukrainian economy over the past years are systematized. The role of digital banks and the chronology of their emergence in the global financial system are clarified. The possibilities of digital banking of the First Ukrainian International Bank are considered and the features of the new digital bank are described. The advantages of using cloud technologies in the banking sector are identified. The trends in the use of Internet banking services by domestic banks as of January 1, 2018 are analyzed. It is proved that key changes in activities of the banking sector under conditions of digitalization must be customer-oriented and ensure the effective development of the domestic banking sector, namely: forming a new quality of customer service; developing new products and improving existing ones; developing new channels for the provision of banking services and improving existing ones; digital-oriented training of personnel; carrying out process optimization. Article is written in Ukrainian
Vnukova N. M., Andriichenko Z. O., Hontar D. D.
The Conceptual Framework for the Formation of a Risk-Based System for Combating Money Laundering, Terrorist Financing, and the Financing of the Proliferation of Weapons of Mass Destruction (p. 201 - 215)
The aim of the article is to elaborate the theoretical basis for the development of conceptual framework for implementing a risk-based system for combating money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction. The list of regulatory documents which are of strategic nature for the functioning of the AML / CFT system in Ukraine is studied. The sequence of development of the Concept for the formation of a risk-based AML / CFT system is proposed. The recommendations of international organizations on the adoption of a risk-based AML / CFT system when using payment cards, mobile payments, and Internet-based payment services, in particular, through commercial websites and Internet payment systems; carrying out transactions with virtual assets, in the work of banks; countering the financing of terrorism, providing monetary services, in real estate transactions. It is proposed to use the system, institutional and functional approaches as a methodological basis for the Concept of the formation of a risk-based AML / CFT system. Hypotheses concerning the formation of the risk-based AML / CFT system are put forward, their verification is carried out, and methods for their proof are substantiated. The basic principles of the formation of a risk-based AML / CFT system are described, and based of them the Conceptual framework for the current development of a risk-based AML / CFT system are formed. The priority directions of the functioning and development of the risk-based AML / CFT system in Ukraine are identified. Article is written in English
Dunas N. V.
International Standards for Valuation of Property for Lending Purposes and Prospects for their Use in Ukraine (p. 216 - 225)
The aim of the article is to justify promising areas for the harmonization of national approaches to valuation of property for lending purposes with international and European standards based on comparing their structure and content. The carried out analytical review of the modern mortgage banking market in Ukraine and European countries made it possible to identify key trends, obstacles, and risks of its functioning, in particular, in the aspect of valuation of property for lending purposes. The factors that adversely affect the ability of the mortgage market to be a strong full link between the financial market and the real estate market in Ukraine, as well as to stimulate the country’s socio-economic development in the long term, are substantiated. The author describes foreign initiatives regarding the standardization of property valuation based on a comparative analysis of the structure and methodology of valuation in accordance with the European Valuation Standards EVS-2016 and the International Valuation Standards IVS-2017. There justified promising areas for the harmonization of the national valuation standards with consideration for international approaches to valuation of property for lending purposes, which will provide for eliminating methodological differences in valuation activity and increase its integration in both the commercial real estate market and the mortgage banking market in Ukraine. Article is written in Ukrainian
Zhukov V. V., Kotsiuba O. V.
Analysis of Problematic Issues in Building an Effective Bank Compliance System (p. 226 - 232)
In the context of the globalization of the banking market and increased risks, there arises a need for a reliable system to ensure financial security and stability of a bank as well as compliance with all domestic and international standards, norms, and rules. These tasks can be solved by a compliance system. In the article, a morphological analysis of this concept is carried out, and the author’s own vision of the interpretation of this concept is presented. The proposed bank compliance system is based on the main financial methods (organization, analysis, planning, and control) and the principles of compliance developed by the Basel Committee. The organization of compliance can be provided at 2 levels: at the level of a banking institution and at the level of the banking system as a whole. A bank can create an independent compliance department or include the function of compliance control in the responsibilities of the legal department. At the level of the national banking system, compliance control is exercised by the National Bank of Ukraine. Compliance risks that are subject to analysis and planning within the framework of a compliance system include legal, reputational, operational, informational, and money laundering risk. Compliance control is aimed at ensuring conformity of actions of a bank’s management with domestic regulations. Article is written in English
Kyshakevych B. Y., Mazharov D. V.
Evaluating Scale Efficiency of Ukrainian Banks Using DEA (p. 233 - 240)
The article there built DEA models with variable return to scale (VRS) and constant return to scale (CRS), which made it possible to determine the change in efficiency with a change in the scale of operations and to assess the scale efficiency of Ukrainian banks for 2017. It is assumed that a bank has an efficient scale if the volume of its active operations is optimal or, in other words, if any changes in their volume would have made it less efficient. The value of the scale efficiency of a bank is obtained by dividing the CRS by the VRS. The scale efficiency measures the closeness of the size of a bank’s operations to the scale that is most efficient for it. It is found that large state-owned banks had a higher average VRS of technical efficiency than other groups of banks. However, large state-owned banks demonstrated a low level of SE with the diminishing return to scale (DRS). This indicates the inefficient use by state-owned banks of their resources and the need to reduce the scale of their operations in order to achieve their most efficient scale of activity, which is obtained in the article on the basis of the CRS model. Moreover, there considered the negative impact on the banking business in Ukraine of significant preferences provided by the NBU to state-owned banks, namely: full guarantee of deposits in them, access to virtually unlimited refinancing, etc. The analysis demonstrates that the majority of small Ukrainian banks functioned with increasing return to scale (IRS), which indicates the potential for economies of scale and the need to scale up their operations to maximize returns on existing inputs. In the article there obtained the average values of VRS, CRS, and SE for the entire banking system of Ukraine for 2017 with the income and intermediary approaches, and calculated correlations between them. Article is written in Ukrainian
Khalatur S. M., Gushcha S. O.
Factors Affecting Profitability of Commercial Banks and Directions of its Improvement (p. 241 - 246)
The aim of the article is to analyze the financial results of commercial banks of Ukraine at the present stage and develop recommendations for ensuring the profitability of their activities. The article analyzes the profitability of commercial banks of Ukraine for 2009-2017. In the paper, there proposed a mechanism for ensuring interaction of bank deposits and indicators of volatility and liquidity, which can change financial costs of banks. The higher the cost of access to alternative liquidity is, the higher the propensity of banks to increase the rates on long-term loan, which, as a result, helps to shorten the period of loan repayment and leads to making less long-term investments and production. It is revealed that one of the several institutional reasons for the lack of long-term finance and investment is the absence of functioning liquidity markets. Further research in the area of increasing profitability of commercial banks and developing the national economy will allow extend the range of results and ensure the further development of management of the optimal profitability policy of commercial banks. Article is written in English
Kryvoshlyk T. D.
Associations of Insurance Companies as a Factor of Self-Regulation in the Insurance Market of Ukraine (p. 247 - 253)
The aim of the article is to study the current status of associations of insurance companies in Ukraine and substantiate their role in the self-regulation of the insurance market. The necessity of creating associations of insurers is grounded. The current status of associations of insurance companies in the insurance market of Ukraine is analyzed. Furthermore, there identified their types, characteristics, and properties, which served as a basis for formulating the definition of associations of insurance companies as specialized non-profit organizations created by insurers in accordance with the requirements of legislation or on a voluntary basis for the purpose of coordinating their activities, representing and protecting the interests of its members, implementing joint programs, cooperating with government and local self-government bodies, Ukrainian and international organizations, promoting the development of the insurance industry. It is noted that most of the associations of insurance companies currently existing in Ukraine are active and well-known. The attention is focused on the fact that part of the associations of insurers ceased their activity, despite the need for them, which negatively affects the level of insurance protection of the society and the development of the insurance market. A classification of associations of insurance companies is developed based on such criteria as types of coordination of activities (it is proposed to divide them into general and specialized ones), form of participation (mandatory and voluntary), territorial basis (all-Ukrainian and regional ones). Based on analyzing the statutory activities of associations of insurers, their common primary tasks are highlighted. There identified factors of self-regulation of the insurance market based on associations of insurance companies. Article is written in Ukrainian
Lutska N. I., Prokopenko Z. V.
General Requirements for the Formation of Equity Capital of Non-Bank Financial Institutions (p. 254 - 263)
The aim of the article is to study the general requirements for the formation of equity capital of non-bank financial institutions. The non-banking financial institutions, in particular, joint investment institutions, non-state pension funds, and leasing companies, are studied. The current legislation is analyzed, and the classification of joint investment institutions is generalized, the difference between the most common joint investment institutions, namely, corporate and mutual investment funds, is considered. In the article, the authors demonstrate the interaction of entities serving joint investment institutions in conducting transactions with assets and equity components. The requirements for the formation of the authorized capital and other components of equity capital of joint investment institutions and asset management companies in accordance with domestic legislation are considered. The regulations on forming the authorized capital and determining the net asset value of joint investment institutions are analyzed. The requirements for founders of non-state pension funds, which affect the organization of accounting of these entities, are considered. The interaction of entities serving non-state pension funds is traced, and the requirements for their equity capital are considered. Article is written in Ukrainian
Pasichnyk Y. V.
Theoretical and Methodological Justification for the Formation of Local Budgets in the Context of Decentralization (p. 264 - 270)
The aim of the article is to formulate a theoretical and methodological justification for the formation of local budgets, including budgets of united territorial communities (UTC). At each stage of the study, the main problems in preparing and implementing local budgets are identified, and proposals on their solution, in particular, the development of the theoretical and methodological bases for the formation of local budgets, are elaborated. A comprehensive analysis of the main trends in the development of UTCs in terms of changes in their number, their population and occupied area is carried out. Furthermore, an assessment of using budgetary resources by local authorities is fulfilled. The results of the study demonstrate that local budget revenues do not correlate with the rate of growth in the number of UTCs and the area they occupy, given that in the period under consideration the number of UTCs increased almost six times, while their revenues — only slightly more than two times, which corresponds to the growth rate of the Gross Domestic Product. In addition, the volumes of their revenues include a rather weighty inflation component. Thus, the newly created UTCs have not yet become the locomotive of social development, therefore, significant reforms are needed in the development of both local self-government and UTCs. Based on the results of the analysis of preparing and implementing local budgets, there elaborated a theoretical and methodological basis for their formation, which is aimed at improving the formation of local budgets, including those of UTCs. Article is written in Ukrainian
Tarasiuk M. V., Timoshenko N. M.
The Condition and Prospects of the Development of the Government Securities Market Instruments in Ukraine (p. 271 - 277)
The article contains the results of studying instruments of the domestic market for government securities in Ukraine. Due to the fact that the financial market has become a powerful and efficient source for accumulating temporarily free funds, which will satisfy interests of investors themselves, the state is trying to diversify and improve the list of government securities of Ukraine. The main trends in the development of government borrowing in the domestic market of Ukraine are described, the advantages and disadvantages of the subtypes of government debt obligations are considered. Over the past decades the number of instruments in the government debt market of Ukraine has increased. In particular, these are VAT bonds, domestic government bonds in foreign currency, indexed bonds, hryvnia-denominated and US dollar-denominated treasury bills, war bonds. Despite a rather large list of financial instruments, almost all issues of non-standard debt instruments did not have much success. The main factors affecting the issuance and circulation of government securities in Ukraine are identified. Moreover, the relationship of the state and the NBU in the government securities market is highlighted. Financial bills and discussions of scientists about its legal status are considered in the context of financial instruments. There analyzed foreign experience in implementing government debt relief programs in the USA, Japan, and Canada, in which employers participate to financially support their employees. Positive and negative aspects of their functioning are identified, and conclusions are drawn about the possible consequences and prospects for Ukraine. There substantiated proposals for measures to increase the level of investor interest in government debt instruments in the securities market that concern both legal and economic components of qualitative changes and reforms. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №1-2019
Demianchuk O. I.
The criteria to Ensure Sustainable Development of Administrative Units (p. 164 - 169)
The article highlights issues concerning criteria for ensuring sustainable development of administrative units. The emphasis is placed on ensuring sustainable development of administrative units through the system for managing these territorial divisions. The author has investigated all the components of the system for managing administrative units: objects and subjects of management as well as the criteria for ensuring sustainable development of administrative units. On the basis of the methodological analysis and thorough analysis of the domestic legislation, it is pointed out that there is no unified approach to identifying criteria for ensuring sustainable development of administrative units. First, the essence of the concept “criteria” is studied, after which the author’s definition of this category is given, and a broader interpretation of the concept “criteria for ensuring sustainable development of administrative units” is presented. As a result of the research the principles, characteristics, and conditions for ensuring sustainable development of administrative units have been determined. The author has singled out six groups of criteria, on the basis of which it is possible to make a comprehensive assessment of the totality of attributes of sustainable development of administrative units for each group. Article is written in Ukrainian
Savytska N. L., Zhyliakova O. V.
Assessment of Prospects for the Development of the Life Insurance Market in the Context of Reforming the Pension System (p. 170 - 175)
The aim of the presented research is to deepen the theoretical bases of and assess the prospects for the further development of the non-state pension sector in Ukraine, namely, life insurance companies as one of the participants in the pension system of the country. The level of development of non-state pension provision in Ukraine is analyzed. There calculated the life insurance coverage, taking into account the population aged 18 to 60, and the number of participants in non-state pension funds of Ukraine. A comparative analysis of financial services for the provision of supplementary pensions rendered by non-state pension funds, banking institutions, and life insurance companies is carried out. Based on the analysis, the competitive advantages of life insurers over other financial institutions that provide accumulative pension insurance services are formulated, which made it possible to identify prospects for the development of life insurance services in the context of reforming the pension system in Ukraine. As a result of the study, there set the tasks the implementation of which will allow life insurers using development opportunities and taking a leading position in the market for the provision of non-state pension insurance services. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №2-2019
Hlushchenko A. S.
Formation of Self-Sufficient Wealthy Territorial Communities in Ukraine: State, Problems and Prospects (p. 126 - 133)
The aim of the article is studying the current state of the formation of wealthy territorial communities in Ukraine, identifying the main problems in the course of their formation and financial decentralization, and searching for ways to solve them. The definition of the notion “wealthy territorial community” is clarified, the main instrument for the formation of such communities – financial decentralization – is defined. The state of the regulatory framework for reforming local self-government in Ukraine is studied, the trends in the formation of united territorial communities for the period 2015–2018 is analyzed, the regions in which the decentralization is carried out most actively are identified. The behavior of the share of the communities’ own income in the local budget for the entire period of decentralization is analyzed, and it is found that the budget revenues of the united territorial communities increased at a higher rate than that of other local budgets; it is determined that the largest share in the structure of communities own income is presented by the personal income tax. A significant increase in the volume of state budget support for local self-governments to develop communities and build their infrastructure is revealed. The main problems that occur during the financial decentralization and formation of wealthy communities in Ukraine are identified, recommendations to solve these problems are elaborated. It is determined that further prospects for the reform are related to the implementation of the plan of measures for the second phase of the decentralization, approved by the Cabinet of Ministers of Ukraine in January 2019. Article is written in Ukrainian
Korotun V. I., Novytska N. V., Khliebnikova I. I.
Measures against Forestalling in Tobacco Companies: European Experience and Conclusions for Ukraine (p. 134 - 144)
Despite the effectiveness of excise policies to reduce the consumption of tobacco products, Ukraine, like most European countries, along with illegal traffic got the problem of optimizing the payment of excise tax on tobacco products in the form of forestalling. The essence of this phenomenon lies in the accumulation in tobacco manufacturers’ warehouses of products with excise stamps acquired before the increase in the excise tax rates. It is proved that EU countries, in response to the challenges, have introduced anti-forestalling measures, depending on the specifics of excise taxation and control over the turnover of excisable goods, which are classified into four types: establishing cap on tax stamps, cap on release for consumption; setting the sell-by date at wholesale or at wholesale and retail simultaneously; paying the tax difference. The trends in and volumes of forestalling in Ukraine are estimated, and, on this basis, losses of the excise tax from tobacco products are calculated. There proved the inefficiency of the functioning of the current Ukrainian anti-forestalling regulation which involves restricting the acquisition of excise duty stamps in the fourth quarter of the reporting year. Based on the best European practices, in Ukraine, there proposed a new methodology of anti-forestalling regulation, which combines the establishment of quotas for the sale of excise duty stamps using the final date of sale of tobacco products at wholesale and retail. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №3-2019
Alieksieiev I. V., Paranchuk S. V., Chervinska O. S.
Tax and Non-Tax Flows of United Territorial Communities (p. 186 - 193)
Under conditions of decentralization, especially taking into account the creation and establishment of united territorial communities (UTC), there is a need to transfer financial resources to a different than earlier, primary, level of financing of socio-economic programs. Changing the direction of budgetary funds flows requires studying a number of aspects of the transformation of the budgetary and tax systems. In particular, there is a need to study tax and non-tax flows in the functioning of the united territorial communities. The article justifies the introduction of the concept of tax and non-tax (financial) flows, in particular, in the context of the united territorial communities. It is determined that the use of the category “flows” for tax and non-tax payments or budget revenues at various levels is a first step necessary for further research with the use of economic and mathematical methods. The concept “flow” is more tight-laced in terms of both physical representations and mathematical methods of data processing. The paper suggests introducing the categories of “tax flow” and “non-tax flow” into financial terminology. Tax and non-tax flows (revenues) of the local budgets of Ukraine and the budgets of the united territorial communities are analyzed. The analysis of these revenues in the local budgets of regions of Ukraine showed that all items of revenues increased during the study period, the largest increases being observed for the personal income tax, single tax, corporate income tax and basic subsidy. The data on the dynamic pattern of creating united territorial communities in Lviv region are given. An analysis of the structure of actual revenues and costs of general and special-purpose funds of UTCs of Lviv region is carried out, corresponding calculations are made. Article is written in Ukrainian
Zhytar M. O.
The Financial Architecture of the National Economy: Configuration and Structural Components (p. 194 - 201)
The aim of the article is to study the configuration of the financial architecture of the national economy, determine its structural components, as well as reveal the properties of its construction. It is proposed to single out the following main structural components: national, international, global (supranational) one, presented in the configuration and investigated in conjunction with the external environment. The national component represents conditions for the functioning of the financial system within the national economy. To a certain extent, this component characterizes the degree of liberalization of the country’s financial sector. The international component is the state’s activities to create and develop conditions for free movement of capital and to a certain extent ensure the financial sovereignty of an individual country. The global (supranational) component includes the development and implementation of fundamentally new mechanisms and methods for managing the international community as a whole (in financial terms), without limiting national sovereignty. A classification of types of financial architecture depending on the properties of its construction and the specifics of its interaction with the external environment is proposed. Taking into account the totality of the properties presented in the article, it is proved that the financial architecture is a complex hierarchical configuration of constituent components, and, in this regard, signs of complexity are identified. The analysis showed that further studies should be aimed at considering the dynamic patterns of institutional changes in the financial architecture. Article is written in Ukrainian
Marshalok T. Y.
Development of State Fiscal Institutions in the Context of Ensuring Economic Equilibrium in Ukraine (p. 208 - 216)
It is noted that the innovative revolution, technological and scientific breakthrough, emergence of new branches of the economy, the food crisis in the world and a considerable scientific, agricultural, technological potential of Ukraine are the key to its economic advancement. To achieve the highest strategic goals, it is necessary to develop a balanced and clear countercyclical state policy. The strategic benchmark of the policy should be support and development of innovations, and its integral part — a fiscal policy developed with consideration for the latest paradigm of countercyclical regulation with high-quality effective tools for ensuring economic growth and advance in living standards. These instruments should be undoubtedly based on discipline, openness and transparency in actions of managers engaged in its implementation; the ability to quickly and effectively respond to potential threats and challenges in the economy. This is possible provided the formation of a highly qualified government, which has necessary tools and skills in modeling economic conjuncture as well as the ability to use qualitative fiscal instruments of a stabilizing nature. And, most importantly, any actions should be rest upon a calculated strategy considering risks, threats and trends at the state and global level. Article is written in Ukrainian
Tkachuk I. Y.
Democratic Innovations in Ukraine as a Factor Influencing Changes in the Methodology for Studying Civil Society Finance (p. 217 - 225)
The aim of the article is to investigate the influence of introducing democratic innovations in Ukraine on changes in the methodology for studying civil society finance. The importance of introducing democratic innovations for the democratization of the state and improving the quality of its governance is revealed. It is determined that the main democratic innovations in independent Ukraine were the referendum; creation of public organizations with the support of international funds, apartment building co-owners associations, endowments, the e-government system; introduction of inclusive elements of society management; social networks and groups in them, etc. The reasons for and normative regulation of the introduction of these democratic innovations are characterized. The analysis of the methodology for studying civil society finance in the historical context is carried out. It is noted that 2006 was a turning point both regarding the reasons for introducing the democratic innovations and the methodology for studying civil society finance. The existence of interrelationship between the introduction of the democratic innovations and changes in the methodology for studying civil society finance is substantiated. The basic principles to be observed when carrying out a modern scientific research of civil society finance are described. It is concluded that there are all prerequisites for implementing a high-quality comprehensive study of civil society finance in compliance with them. Article is written in Ukrainian
Shirinian A. A., Shirinyan L. V.
Key Performance Indicators of Insurance Market for Consumers of Insurance Services (p. 226 - 232)
The use of key performance indicators (KPIs) is the driving force for enhancing business efficiency. However, to our knowledge, this approach has not yet been applied to a comprehensive analysis of the insurance market. The problem of assessing efficiency of the insurance market by its main participants is relevant. It is important to find out how KPIs can be used in insurance business. The presented article is the beginning of a series of works dealing with the development of KPIs for participants in the Ukrainian insurance market. The aim of the work is to elaborate a system of KPIs of Ukraine’s insurance market for consumers of insurance services based on macroeconomic and microeconomic indicators, which would allow to obtain a comprehensive assessment of the results achieved from the standpoint of various participants in the insurance market.The number of KPIs is optimally limited in order to eliminate secondary indicators that almost do not influence assessment effectiveness or ensure accessibility of data on insurance companies and those of the state authorized body required for calculating KPIs. In the work, the KPIs of the Ukrainian insurance market, which can be used by potential customers of insurance companies, are first developed and classified. The relevant KPIs are: price for the service, share of administrative expenses, level of insurance reimbursement, completeness of insurance reimbursement, percentage of the loading in the insurance tariff, service accessibility, timeliness of payments. For consumers of services, insurance efficiency is achieved by minimizing the price for the service; ensuring, high quality and timeliness of the service, and completeness of insurance reimbursement. The new approach provides the possibility for using the developed KPIs to assess the entire insurance market as well as an individual insurance company or insurance service. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №4-2019
Hariaha L. О., Kulish R. R.
Financial Security of Banking in a Digitalized Economy (p. 163 - 171)
The aim of the article is to study the theoretical bases of financial security of banking in a digitalized economy and develop proposals for improving methodological approaches to assessing financial security of a bank. By summarizing the approaches to the interpretation of financial security of the banking system and an individual bank, the authors’ definition of these concepts with regard to digitalization is proposed. In view of the studied aspect, financial security of a bank is defined as the state of financial relations when conditions are created for an effective use, management and formation of the bank’s resource base, enhancement of its financial solvency to counteract destabilizing factors in the context of protection of databases in the bank’s network and on the Internet through implementing digital programs and algorithms which can ensure a stable operation of the bank and increase the level of security in the virtual information space. The classification of threats to financial security of the banking system is systematized. Indicators of financial security of banking activities with regard to digitalization are justified. Classical indicators of a bank’s financial security are indicators of financial stability; indicators of asset quality; indicators based on the structure of obtained and borrowed funds; indicators based on capital adequacy; liquidity indicators; profitability indicators. To determine if the bank has certain units, protective equipment and products related to digitalization and Internet technologies, additional indicators of financial security of a bank are proposed. There proposed an improvement of the methodology for assessing financial security of a bank with regard to digitalization of banking activities, which involves calculating the integral indicator of a bank’s financial security (taxonomy coefficient). In further studies, it is advisable to test the proposed methodology for assessing financial security of a bank with regard to digitalization with the use of the example of an individual banking institution. Article is written in Ukrainian
Zhytar M. O., Sosnovska O. O.
The Paradigm of Formation of Modern Financial Architecture (p. 172 - 178)
The aim of the article is to study the paradigm of formation of modern financial architecture. It is proved that the paradigm of economic development in the context of a systemic crisis of management mechanisms is the designed format of the financial architecture to increase the predictability and manageability of the global financial system; trends in its development are identified. The systematization of generalizations of theoretical aspects concerning the paradigm of formation of modern financial architecture is presented. It is substantiated that the scientific investigation of the paradigm of formation and development of financial architecture in the context of financial development can serve as the basis for further research on the impact of financial development on economic growth of the national economy, with consideration for the role of financial architecture in this process. In this regard, the issue of modern financial science of XXI century is becoming relevant. It is concluded that the paradigm of formation of modern financial architecture can become the basis for studying organizational and methodological support to form the financial architecture of the Ukrainian economy, identifying modern trends in its development, presenting methodological approaches to analysis of transformations of financial architecture and considering the impact of financial globalization on the formation of the financial architecture of the national economy. Using a theoretical analysis, based on the Finance-Growth Nexus-FG model, the existence of a relationship between the degree of development of the financial architecture of the national economy and the level of economic growth of the country is revealed. It is determined that a stronger positive relationship is characteristic of countries with lower rates of economic development, a decrease in the degree of responsibility of dependence is characteristic of countries with a higher (complex) level of development of the financial system and financial architecture. Article is written in Ukrainian
Koroviy V. V.
The National Tax Policy under Economic Globalization (p. 179 - 185)
The features of the formation and implementation of the state tax policy under conditions of globalization are investigated. The influence of international tax competition on tax regulation of the socio-economic development of the state is analyzed. The role of the formal and informal component of the tax policy in ensuring coordinated cooperation of the national economy with international financial organizations and foreign investors is determined. The Ukrainian tax structure is considered, the fiscal role of its main tax groups is identified. The role and significance of measures to regulate the consumption, labor and capital taxes under global transformations are justified. The features of excise taxation in Ukraine in the context of the implementation of the provisions of the “European Union Association Agreement” are investigated. The main changes in the structure of the country’s taxation in the context of quality of institutional support for entrepreneurial activities are described. The features of fiscal decentralization in Ukraine, in particular, the influence of a specific indicator of tax autonomy on the social and economic development of territorial communities of administrative divisions, are examined. Provisions regarding the improvement of the financial efficiency of the decentralization processes are developed. It is substantiated that the important directions of the transformation of Ukraine’s tax policy in the context of European integration are grouping taxes based on an equitable redistribution of income; unification of the rules for their collection and administration, especially regarding excise taxation; improvement of procedures for interaction between payers and fiscal authorities. The general effect of the introduction of electronic tax administration procedures is described. Potential areas of tax incentives for innovative renewal of the national economy are identified. Article is written in Ukrainian
Rudyk N. V.
The Need for Tax Control over Small and Medium-Sized Enterprises (p. 186 - 192)
The aim of the article is to study the need for conducting tax audits of small and medium-sized enterprises (hereinafter referred to as SMEs) in the context of preventing tax evasion. The types of tax audits envisaged by the Tax Code of Ukraine (TCU) are systematized. The features of these audits and their key characteristics are detailed. The necessity of implementing previous control measures as preventive control of financial literacy and integrity of taxpayers is substantiated. One of the options for conducting such monitoring by taxpayers on their own using the means of the taxpayer electronic account is given. The features of taxpayer activation through an electronic digital signature are detailed. The activation stages are presented as a step-by-step instruction. Using the example of the common tax and the unified social tax, the inconsistency of tax legislation and its interpretation in the taxpayer electronic account is demonstrated. The mechanism of working in the mentioned electronic resource is visualized. Possible directions for tax authorities’ preventing the occurrence of tax violations by SMEs are examined. They are grouped into 3 areas: training for taxpayers, simplification of the taxpayer electronic account, transparency in using the taxes paid by them. The development of effective taxpayer accounts requires using modern interface design. The account should be built based on the principles of maximum functionality and user-friendliness. This can be ensured through competent setting of technical requirement both for the developer selected by the state and third-party organizations, if they are provided access to the information through the API. In the second case, there is a wide range of interested organizations, such as banks and payment aggregators, the competition among which is a potentially effective tool for improving services. Article is written in Ukrainian
Tanchak Y. A., Mykolyshyn M. M.
Problematic Aspects in Developing Insurance of Enterprise Financial Risks (p. 193 - 199)
The aim of the article is to investigate, research and comprehensively solve problematic aspects in developing insurance of enterprise financial risk. By analyzing, systematizing and generalizing scientific works of a number of researchers, the characteristic features and classification of financial risks are examined, and the interpretations of the concept “risk” in view of various theories are systematized. The result of the study is an analytical assessment of financial risks insurance in Ukraine for the first six months during the period of 2017–2019. The classification of programs and terms of financial risks insurance offered by various insurers are studied. A detailed analysis of the problems of financial risks insurance in Ukraine is carried out, and ways to solve them with the aim to improve and efficiently develop this type of insurance are proposed. The prospect for further research in this area is studying the degree of interest of enterprises in this type of insurance. Since, knowing the degree of their interest and the need for insuring financial risks, the insurance company will be able to develop its further strategy for selling and developing this type of insurance. Each enterprise should understand the role of the insurer in its activities and the degree of financial risks that threat their functioning. Therefore, it is important that business entities and activities they carry out be insured against these risks. It is also important to develop this segment of the insurance market to strengthen the national economic system, thus, the state should also support this type of insurance. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №1-2020
Storonyanska I. Z., Dub A. R.
Identifying Shadow Economic Activities in the Real Estate Sector (p. 106 - 112)
The shadow economy is an integral part of the functioning of the national economy of almost any country in the world. In Ukraine, the size of the shadow economy, despite a positive downward trend over the past five years, remains high. In the real estate sector, the extent of shadow activities significantly exceeds the corresponding indicator for the national economy as a whole. The aim of the study is to identify the shadow component and its size in the real estate sector, as a basis for further research and development of measures for tackling shadow real estate transactions. Using direct and indirect research methods, shadow activities in the real estate sector are detected, their heterogeneity being pointed out. The complexity of clear identification of the shadow component, due to the fact that unlawful (criminal) actions of certain entities can take place within the framework of legal activity and vice versa, is noted. The breaking down of shadow real estate transactions into informal, hidden (“gray”) and illegal (criminal or “black”) is carried out. The indicator of the size of the shadow component in the real estate sector published by the Ministry for Development of Economy, Trade and Agriculture of Ukraine is critically evaluated. The study justifies the thesis of understatement of the indicator resulting from a high volume of unreported activities of individual entrepreneurs engaged in the real estate sector and transactions involving residential leasing carried out by individuals who are not registered and do not declare received income, as well as a large size of the criminal (“black”) component in the real estate sector. It is noted that the consequences of shadow real estate transactions are not only a decrease in budget revenues due to non-payment of taxes and fees but also the risks of non-fulfillment or improper fulfillment of verbal agreements by the parties, especially as concerns residential leasing. Article is written in Ukrainian
Boiko S. V., Hoshovska V. V., Masalitina V. V.
Debt Burden on the State Budget: Long-Term Trends and Expenditure Structure Asymmetries (p. 241 - 249)
The aim of the article is to analyze the long-term debt policy of Ukraine and determine its impact on the structural shifts in the state budget expenditures for public debt servicing. The article justifies the relevance of studying debt burden on the state budget by several aspects: firstly, the debt burden as a consequence of the state debt policy aimed at accumulating additional financial resources through internal and external borrowing; secondly, as a factor in macro-financial, fiscal and monetary stability; thirdly, as a factor of influence on the composition and structure of the state budget expenditures; fourthly, as a factor of influence on the level of tax burden on income (profit) of individuals and legal entities, or national wealth. An empirical analysis of trends concerning the total amount of public debt, expenditures of the State budget of Ukraine for servicing public debt, the structure of expenditures of the State budget of Ukraine in 2005–2019 is carried out. Using the methods of economic and statistical analysis, the regression, regression and correlation models are constructed, and the presence of a very strong inverse relationship) between the size of public debt and the structural changes in the expenditures of the state budget of Ukraine in the direction of reducing costs for economic activities, education, healthcare, spiritual and physical development is proved. Article is written in Ukrainian
Krasovskyi M. A., Kudrytska Z. V.
Forecasting Methods in Financial Markets in the Digital Economy (p. 250 - 256)
The aim of this article is to study and summarize the principles, methods and value characteristics of generally accepted types of analysis of financial instruments and an alternative type of analysis — behavioral finance, which became relevant due to the development of the digital economy. Development of the economy constantly requires mobilization, distribution and redistribution of financial resources among its spheres and sectors. An important role in the implementation of this process is played by financial markets. Financial markets are a means of ensuring the normal functioning of all economic sectors as well as of combining state, institutional and individual interests; protecting the population’s money from inflation; improving their financial situation. As a result of the study, the main aspects of behavioral finance are highlighted, and examples of the most common mistakes of investors are given. It is proposed to use Sentiment Index to assess the state of the market and more effectively forecast financial instruments. Using this index, government agencies can track financial risks that arise from speculations of media and financial analysts. The results of the study can be of importance for both the investment and political sphere. In the political sphere, instability can have a negative impact on the functioning of markets and pricing of assets within the state and in the international market. If financial risks are accompanied with a change in investor sentiment, this leads to an outflow of capital and financial instability in the country, but using only the method based on building Sentiment Index is not recommended. Article is written in Ukrainian
Melnyk V. M., Zhytar M. O.
The Banking System of Ukraine as Part of the Financial Market (p. 257 - 266)
The aim of the article is to study the banking system of Ukraine as part of the financial market. An analysis of macroeconomic indicators, based on data from the National Bank of Ukraine and the Ministry of Finance of Ukraine, is carried out. It is found that today the development of the banking sector of Ukraine is largely conditioned by economic growth of the country and the situation in international financial markets. It is proved that improving the quantitative and qualitative features of the development of the financial sector as a whole is an important condition for state regulation of the financial system of Ukraine, preceding the adoption of effective and adequate management decisions aimed at searching for approaches and appropriate methods, with regard to challenges posed by the external financial environment, at the stage of integration processes. It is justified that the Ukrainian banking sector is gradually integrating into the international banking system and is forming its own development model, which should fully realize Ukraine’s potential in financial globalization. There highlighted the trends in the banking industry of Ukraine: restoration of profitable activities of banks (in the system in general); increase by the National Bank of the discount rate, which led to a growing attractiveness of investment in government bonds and NBU certificates of deposit; slow pace of business lending; rapid development of consumer lending. It is concluded that a tight monetary policy, restrained fiscal policy, forecasted decrease in the grain harvest and decline in the volume of international trade, in particular, as a result of protectionist measures, can be considered the main levers of maintaining economic growth in 2019. Article is written in Ukrainian
Pilevych D. S.
Theoretical and Applied Bases of Using Blockchain Technology in Accounting (p. 267 - 274)
The aim of the article is to study the theoretical and applied bases of using blockchain technology in the national accounting system. The article proves that digitalization, as one of the main trends in the development of the national economy, causes a change in business models, approaches to organizing, carrying out and managing a business and also modifies the communication channels between enterprises and partners, regulators and consumers. These changes lead to the need for modernization of accounting as a system for collecting, processing and storing information on enterprises’ activities. The author identifies blockchain technology as a prospect instrument for the modernization of an accounting system; blockchain technology is defined as a distributed database of all transactions carried out by enterprises. The article outlines the priority areas of using this technology in accounting (international settlements; accounting of the asset flow within an enterprise; real-time transaction accounting, etc.). The advantages of using blockchain technology in accounting are transparency, security, reliability, speed, saving time and resources, decentralization, increased trust between system participants, improved workflow, advanced training of accountants and auditors. The author concludes that, despite the high requirements for technical support and modernization of enterprises in the context of the digitalization of the national economy, blockchain technology should become one of the priority areas for the development of the accounting system. Article is written in Ukrainian
Sloboda L. Y., Demianyk O. M.
Prospects and Risks of the Fintech Initiatives in a Global Banking Industry (p. 275 - 282)
The aim of the study is to outline the main trends, problems, and risks that should be addressed through cooperation between fintech companies and banks at the current stage of international financial market development. The analysis of the current situation in the financial market shows that innovative technologies play a key role in the development of banking and financial services in the world. The problems of the flexibility of traditional financial institutions do not coincide with the ever-growing needs of clients to receive the highest quality, cheap and fast financial services. Technology-driven companies continue to develop the digital innovation field, which has generated considerable interest in its implementation in banking and finance. The article describes the main reasons for the partnerships between banks and fintech companies, the motives and trends of investing in fintech development, the main stages of preparation for partnership and the area of highest interest for implementation of innovations by international banks. An applied aspect of this article is the analysis of the practical experience and forms of successful cooperation between banks and fintech companies in different countries of the world. The research results highlight the main stages of preparation for international banks’ cooperation with fintech companies, as well as the most popular products and services to enhance effective integration between them. Based on the results obtained, measures to strengthen cooperation between banks and fintech companies are justified, which will make the process of satisfying financial services consumers more rapid, simple, accessible, and efficient. The authors identify the major challenges and risks facing the Ukrainian аintech market, including the legal and regulatory environment, slow adoption of innovations by traditional banks, lack of open APIs in the banking sector, limited access to capital and financing for fintechs, etc. A prospect of further research in this area is to substantiate common and distinct approaches to regulating activities of fintech companies in different countries around the world, including capitalization and financial risk management requirements, as well as KYC (Know Your Customer Identification) procedures in customer service. The further development of the fintech industry is significantly transforming the business models of international banks and could lead to the replacement of classic forms of banknotes Article is written in English
Zherеbylo І. V.
Social Policy of the State as a Regulator of Social Sphere Development: Theoretical and Methodological Aspects (p. 283 - 289)
Modern changes that accompany all spheres of public life exacerbate the problem of resource depletion, intensify the migration of the population, and thus lead to a dilution of socio-cultural identities. In this sense, the social sphere, within which key human needs are fulfilled, is particularly vulnerable. The complexity of its regulation and development is seen in its polysystemic character, as some components ensure the satisfaction of the spiritual and physical needs of man and society as a whole, while others guarantee an increase in the standard of living, the possibility for reproduction of labor-power and improvement of living conditions of the population. The aim of the article is to deepen the theoretical and methodological foundations of the social policy of the state as a regulator of the development of the social sphere in the context of socio-economic progress. The essence of social policy is revealed, the methods of its implementation and its structural components are described. The result is a proposed own vision of the considered concept. On the basis of studying the experience of foreign countries, social policy models are systematized and their peculiarities are determined. It is shown that the object of social policy is social relations, social life processes and social needs, which together make up the social sphere of the country. Emphasis is placed on the practical aspect of social policy implementation, which involves using both methods of market self-regulation and methods of direct and indirect state intervention. It is noted that the concepts of social cohesion and social capital occupy a noticeable, sometimes contradictory place in the social policy of the country, while social capital reduces the structural and mediating dimensions. It is shown that the key objective of social policy in the health care system that takes into consideration social cohesion is the maintenance of relations between citizens and institutions. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №2-2020
Karpinskyi B. A.
Fundamentalization of Behavioral Finance in the System of Dominant Impact of the State Creating Patriotism of the Nation (p. 347 - 355)
The aim of the article is the fundamentalization of the basic aspects of behavioral finance with the focus on the realization of the dominant potential of the state creating patriotism of the nation. Based on analyzing and systematizing scientific works of a number of scientists, it is proved that there is a need for the development of behavioral finance with the focus on realizing the potential of dominant elements (qualitative and quantitative ones) of the state creating patriotism of the nation. It is noted that the state creating patriotism of the nation is all that the people in general and each citizen in particular do in the interests of creating an independent, sovereign, civilized state. It is determined that both the combination of the qualitative dominant element of such patriotism with its internal architectonics (traditions, mentality, spirituality, tax culture, etc.) and the transfer of the potential of the quantitative (tax) dominant element into the real plane of state creation becomes a synthesizing link in the fundamentalizm of behavioral finance. It is proved that the manifestation and effectiveness of the tax culture in the system of realization of state creating patriotism of the nation is significantly affected by the growth of the shadow economy. It erodes the constitutional orientation of the interests of taxpayers, narrowing the possibilities for replenishing the budget through the behavioral limitation of the financial participation of citizens in creating the state, and determines the formation of dictatorial coercive and corruption-based management approaches. It is synthesized that the fundamentalization of behavioral finance with regard to the state creating patriotism of the nation is a strategic scientific direction in the theory of finance that synthesizes and harmoniously combines the legacy of financial science with methodological and psychological approaches and the individual’s patriotic spiritual values (social, moral, aesthetic), purposefully integrating effective possibilities for understanding the specifics of f making financial decisions. Article is written in Ukrainian
Stoiko O. Y.
Prospects for the Development of Fintech and Banking in Ukraine (p. 356 - 364)
The aim of the article is to study the problems of developing fintech and banking in Ukraine and develop promising areas for their interaction. It is established that in the context of the introduction of financial and technological innovations, traditional approaches to the provision of banking services no longer meet the modern needs of consumers and the requirements for improving the efficiency of banking. The main advantages and disadvantages in activities of commercial banks and fintech companies are identified. The advancement of financial technologies has a positive effect on activities of domestic commercial banks, which enhance the quality of customer service, improve automated means, and increase the protection against cyberattacks and fraud.At the same time, traditional commercial banks can provide significant assistance to fintech companies in terms of expanding infrastructure, increasing capital, and enabling access to a well-developed client database. It is proved that the most effective strategy of relationships between commercial banks and fintech companies is not competing but using various mutually beneficial cooperation options. With the introduction of the latest technologies in Ukraine, a significant breakthrough was the launch of the first mobile bank – Monobank, which operates without physical branches and is able to carry out all basic banking operations.The analysis showed that the online service of Monobank in the second half of 2019 grew by an average of 100 thousand customers every month and also had a positive trend in all key performance indicators. The feasibility of the participation of commercial banks in promoting P2P and P2B electronic platforms is substantiated. It provides mutual benefits for both parties: for banks – avoiding liquidity and defaultrisks, and for electronic credit platforms – getting access to a significant amount of banking resources. A promising area of interaction between fintech and banking is the introduction of Open Banking, which will enable access of fintech providers to banking data and give possibility for creating new products and services.Another potential impetus for the implementation of innovative solutions may be applying BankID remote digital identification, which will make the domestic financial market more accessible and open for its participants, simplify the procedure for rendering services and provide conditions for creating innovative services and improving the existing ones. The important role of the National Bank in the development of financial technologies and mutual cooperation of commercial banks and fintech companies is highlighted. Further research will be aimed at an in-depth study of individual areas of cooperation between fintech and banking. Article is written in Ukrainian
Chmutova I. M., Andriichenko Z. O., Kolesnichenko A. S., Kamsarian M. K.
Achieving Profitability of a Bank though Determining the Stages of Development of Innovative Loan Products (p. 365 - 373)
The aim of the article is to substantiate the approach to ensuring profitability of a bank by elaborating a strategy for enhancing its lending activity based on determining the stages of development of innovative loan products. The article presents the calculation of the indicators characterizing the intensification of lending and the lending policy, namely: share of loans to individuals in the loan portfolio, coefficient of lending activity, loan-to-deposit ratio and interest coverage ratio, for 73 banks of Ukraine as of 01.01.2020. Moreover, the dependence of a bank’s profitability on indicators of lending intensification is empirically confirmed though constructing a model using the principles of correlation and regression analysis. Innovations in the field of lending are systematized. It is determined that Ukrainian banks mainly sell such of them as deposit secured loans, overdrafts, revolving loan facilities, commercial real estate loans, express loans. To select strategies for intensifying bank lendingwith consideration for the stage of development of innovative loan products, it is proposed to apply the matrix technique. In view of this, the authors use a modified “life cycle balance matrix”. The types ofa bank’s lending strategies depending on its positioning in the matrix are identified through the correlation of the stages of development of loan products (entering the market, market development, stabilization, market decline) and levels of efficiency of its lending activity (low, medium, high). This will allow determining the period of decline in innovation in a timely manner and reorient towards products that have greater customer demand, which will ultimately help increase the bank’s profitability. Article is written in Ukrainian
Chunytska I. I.
Methodological Sources of Forming Strategic Priorities for the Development of Financial Market and its Infrastructure Support (p. 374 - 381)
The aim of the article is to study the financial market of Ukraine, which has an unrealized infrastructure potential. For its realization, it is necessary to choose an appropriate strategy since constant changes in the development vectors will contribute to further destruction of the infrastructure potential. The weightiness and priority of methodological support in determining the strategic directions of the financial marketdevelopment are proved.Based on defining individual levels of implementation of financial relations and taking into account causal relationships that accompany the functioning and determine cause and effect changes in such relations, it is proved that these determinants form the methodological bases of strategic directions for the financial marketdevelopment. It is proposed that the theoretical and methodological bases of the development of this strategy include provisions reflecting the modern transformation of financial resources in the unity of the aspects of their formation, distribution and redistribution as basic ones.Their subsequent application requires taking into account the level of the financial market in the context of its individual segments with regard to the needs of its self-development and self-regulation.This allows to more objectively reflect the processes occurring in the system of financial relations and to form the basis of strategic directions for the financial market development along with the strategic development of the financial system as a whole. When implementing the essential, quantitative and qualitative transformations of the conditions of individual segments of the financial market, which have their own laws and infrastructure, and combining their potential into an integrated system, there is a real opportunity to direct the infrastructure potential of the market currently ensuring its functioning towards enhancing its strategic power. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №3-2020
Voytovych L. M.
The State Regulation Mechanism for the Insurance System Development in Ukraine (p. 148 - 154)
The purpose of the research is to suggest scientific approaches to prove the necessity of conducting state regulation, to construct a mechanism for the state regulation of the insurance system and to find some opportunities to improve this mechanism in order to develop both the insurance system and the national economy. The article analyzes the conceptual and categorical framework of the theory of the state regulation of the insurance system and considers various approaches to understanding the concept of the state regulation mechanism in the insurance sector. The main specific features of the state regulation in the insurance market, one the one hand, and the state regulation in the insurance system, on the other hand, is highlighted. It is determined that the development of the insurance system is influenced by a combination of factors, so the system’s regulation provided by the state acquires specific features subject to the time, country and economic policy adopted. A new take on the concept of the state regulation of the insurance system is proposed, defining it as the application of the state leverage to influence the bunch of elements that ensure the effective performance of the insurance system in order to achieve its stable development and economic growth. A mechanism of state regulation of the insurance system development has been built, which should include the following elements: the strategic goal, tasks, subjects, objects, principles, functions, methods and tools, forms of the state regulation and factors influencing the insurance system development. The following principles of the state regulation of the insurance system development are highlighted: sufficiency, adequacy, consistency, openness, fairness, expediency, efficiency, stability. The following forms of the state regulation have been studied: statutory regulation, administrative regulation, antitrust regulation, tax regulation, price regulation, financial monitoring. Article is written in Ukrainian
Kornіvska V. O.
Banking system stability in the context of the relationship between banks and the state (p. 155 - 166)
The article presents the results of a study of the banking system stability under the conditions of increased financial support from the state during the financial and economic destabilization. The banking system stability in the euro zone has been analyzed to assess the prospects for monetary and financial development in Ukraine. The European experience proves that strengthening relations between banks and the state amidst the financialization process is harmful. The author of the article treats this relationship as a closed-loop problem of public and financial liquidity circulation, which leads to financial bleeding in the real economy and destabilization of the financial system, as a whole. This problem requires to be fixed by reducing banking transactions with government securities. The article gives facts proving that the search for solutions to this problem made in the European financial space has become one of the factors of financial and institutional transformations in the euro zone and the EU, in general, and has led to the creation of a banking union. The newly introduced legal framework has manifested itself as unable to stimulate efficient financial distribution. It has also been demonstrated that due to the public and financial liquidity circulation the banking system becomes subject to profound redesigning, thus losing its ability to conduct effective financial distribution in the real sector of economy. Article is written in Ukrainian
Koroviy V. V.
Monetary Policy in the Context of Economic Transformations (p. 167 - 175)
The purpose of this article is to improve the theoretical, methodological and practical grounds of monetary policy in the context of economic transformations. The main tasks of monetary regulators in transformational economies are the following: 1) to ensure long-term stability of the national currency; 2) to guarantee the stability of the state financial system; 3) to stimulate economic development indirectly. The necessity to continually improve the methodological tools for implementing monetary policy, as the use of original tools for quantitative and credit easing, has been substantiated. The role of interest rate policy has been identified as the main tool of monetary regulation in countries with advanced and transformational economies. The expediency of using the Taylor rule to increase the effectiveness of monetary policy in Ukraine has been substantiated. The article proves that in order to strengthen the monetary policy efficiency in the strategic perspective, and to approach intermediate and end goals, such policy should be based on a combination of floating exchange rate (of various types), inflation targeting, and adaptive use of other tools (interest rates, monetary aggregates, etc.). The methodological and application-specific peculiarities of implementing restrictive and incentive monetary policy have been outlined. It has been established that the monetary regulator mainly applied restrictive monetary policy in Ukraine in 2005-2020, but loosened it, when the socio-economic situation became challenging. The main features of inflation targeting have also been indicated, with the substantiation of its application in transformational economies, and in Ukraine, in particular. Article is written in Ukrainian
Kremen V. M., Kremen O. I., Huliaieva L. P.
The Role of Bank Lending in the Development of Ukraine’s Economy (p. 176 - 183)
The purpose of the article is to analyze the situation with bank lending to the real sector and its impact on the development of Ukraine’s economy. In order to effect this purpose, the following tasks have been fulfilled: to analyze the dynamics of the total bank lending to the real sector, to analyze the structure of bank lending to non-financial corporations by loan terms and by currency; to determine the volume of loans granted to non-financial corporations in order to buy, build and reconstruct real estate property. To carry out in-depth assessment of the impact made by bank lending to the real sector on economic development, a correlation and regression analysis has been made, revealing that the increase in bank lending to non-financial corporations leads to the growth of the GDP, industrial output (in goods and services), exports, capital investment and average monthly salary and wages. It also reduces the amount of man-power employed, which may serve as the evidence of production intensification and automation caused by using loan proceeds. The polynomial function most appropriately describes the relationship between the volume of bank lending to non-financial corporations and GDP, exports and employment in 2005-2019, and the exponential function most adequately describes the relationship between the volume of bank lending to non-financial corporations and capital investment and the average monthly salary and wages. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №4-2020
Hrebenikova O. V., Tatar M. S., Koval M. I.
Interaction Configurations between Banks and Insurance Companies Necessary to Ensure their Sustainable Development in the Face of Global Challenges (p. 294 - 304)
The purpose of the article is to analyze the reasons, principles and configurations of interaction between banks and insurance companies in order to ensure their sustainable development in the face of escalating global challenges; and to suggest practical guidance for the further development of cooperation between banks and insurance companies in Ukraine. Factors that hinder this interaction and factors that stimulate it are analyzed, including the customers’ growing need in comprehensive services both in banks and insurance companies; banks' understanding of the necessity to provide comprehensive insurance protection, development and active implementation of new products in the new sphere etc. The preconditions, principles, forms and types of interaction between banks and insurance companies, in particular, mutual investment in capital, customer relations, partnerships, integration, etc. are studied, the peculiarities of the relationship between banks and insurance companies at different levels of integration are analyzed. The ways to intensify and modernize interaction between banks and insurance companies in Ukraine in the face of the escalating global challenges are defined. The analysis of diagnostic indices of banks and insurance companies shows that the financial indicators of banks are not strongly affected by the presence of an insurance company, and as for insurance companies, the presence of banks as a part of financial conglomerates allows such companies to increase the volume of insurance contracts and receive gross insurance premiums. Prospects for further research in this area can be the following: to carry out correlation and regression analysis of the relations between the financial performance of banks subject to the presence of an insurance company in the financial conglomerate, on the one hand, and the financial performance of insurers subject to their interaction with a banking institution, on the other; to analyze the formation of an organizational mechanism in banks and insurance companies; to analyze the ways of improving the system of state supervision over the relations and cooperation between the abovementioned entities. Article is written in Ukrainian
Derlytsia A. Y.
The Method of Public Finance Theory and Its Alternatives (p. 305 - 311)
The method of the public finance theory is understood as a set of the following components: initial positions and worldviews; specific research methods; and the ways to verify the results. The initial assumptions and worldviews of the Western public finance theory, modern Ukrainian public finance theory and its Soviet predecessor are compared. The difference of approaches within these theories concerning worldview is revealed, namely: their conceptual and philosophical basis (materialism / idealism); traditions of using the historical method; the role of the base and superstructure in financial science; focus on value / utility in studies dealing with the nature of fiscal phenomena; differences in interpreting the basic unit of analysis (individual, group, or class); the organic / mechanistic concepts of state used; explanation of the nature of the interaction between the basic units of analysis; attitude to the positive / normative approach. The methodological orientation of the Western financial thought on methodological individualism; that of the Soviet state finance theory on methodological holism, and the lack of precision in these issues of Ukraine’s modern financial science are mentioned. The author refers to the negative trend in assessing fiscal phenomena in Ukraine from the standpoint of state-centrism and the interests and needs of the state, which arises precisely on the basis of the holistic methodological attitudes and the predominance of the organic view of the state. It is shown that modern domestic financial science is still in transition. Due to its worldview, it is a theory of state finance (financial resources of the state), while the Western science is a theory of public finance (public funds, belonging to the society as a whole). The paper outlines the guidelines for further transforming the methodological foundations of financial science in Ukraine. Article is written in Ukrainian
Zhytar M. O., Yaroshchuk T. Y.
Ways to Ensure Sustainable Development of Enterprises by Increasing the Credit Resources Efficiency (p. 312 - 319)
The article aims at analyzing the current situation with the sustainable development of an enterprise, which is reached by increasing the credit resources efficiency. The correlation between sustainable development of an enterprise and its creditworthiness has been proved. The level of the Global Competitiveness Index of Ukrainian enterprises in the world economy has been studied. The line of business analyses of the current industrial environment has been carried out, thus sketching the general situation in Ukraine. Features hindering the sustainable development of business have been analyzed. Research has been provided as for the ratings of the most popular banks for business. The main advantages and disadvantages of loans to business persons have been suggested taking into account the average interest rates on such loans. It has been found out that the main factor for obtaining loans by business persons is their financial standing. Therefore, if a business person or company can repay their loans and interest on existing liabilities on time in full, this fact becomes a favorable and important factor for creditors. It has been found out that current loan rates are too high and thus become too expensive for many companies to attract additional funds for their business, the reason being the non-repayment of loans to banks. It is concluded that one of the central problems Ukraine is now facing is the mismanagement of sustainable development of enterprises, and problems in using credit resources suggested by banks are among the main factors here. It is determined that Ukrainian enterprises have all the chances to become the main carrier of technical progress and a source of growth of national competitiveness, but in order for it to start approaching the development level of the world's leading countries, significant financial resources are required. It has been proved that attention should mainly be focused on developing and improving strategic directions of sustainable development management related to attracting credit resources, namely suggesting the rules for and implementing the process of selecting and providing further state support for the best possible investment projects, which could improve the sustainable development of entrepreneurship and increase the efficiency of using credit resources in long-term business projects. Article is written in Ukrainian
Ischenko N. A.
The Current State of Innovative Activity at Ukrainian Enterprises and Its Financing (p. 320 - 325)
The article aims at studying the trends in the current state of the innovative activity at Ukrainian enterprises and its financing. The current state of the innovative activity at Ukrainian enterprises is analyzed; the financing of such an activity is explored. Trends in the innovation activities of Ukrainian enterprises during 2015–2019 indicate the presence of significant problems and a low level of innovation development, which, in turn, has a negative impact on product competitiveness and economic development, in general. So, according to the Global Innovation Index-2019, Ukraine ranks 47th among 129 surveyed countries. As for industrial enterprises, only 782 of them are innovatively active, making up 15.8% of their total number. It has been found out that the introduction of innovations in industrial enterprises in Ukraine is slowing down due to the lack of financial resources. The financial resources of enterprises remained the main source for funding innovation during 2015–2019. The role of the state in financing innovation is not significant, so almost the whole financial burden falls on business entities, which naturally hinders the increase in the innovative activity at enterprises. The problems of innovative development of enterprises in Ukraine have been identified and it has been established that the current state of innovation is a consequence of the lack of strategic vision and consistent state policy in transiting Ukraine to an innovative development path. The results of the research carried out shows the necessity of designing the Strategy for innovative activity development till 2030. Article is written in Ukrainian
Lupenko A. Y.
Credit Default Swaps in the External Public Debt Management (p. 326 - 333)
The article aims at systematizing the theoretical and methodological foundations of using credit default swaps in the external public debt management. Theoretical principles of using credit default swaps in the external public debt management are studied. The advantages and disadvantages of credit default swaps as derivative financial instruments are generalized. It is shown that the main disadvantages of credit default swaps are their speculative character and dependence on international rating agencies, as well as lack of proper regulation in the synthetic securitization of debt-based assets. The mechanism of credit default swap functioning in the risk management system in external state borrowings is conceptualized. The factors influencing the value of the credit default swap in the risk management system in external government borrowing are identified. It is shown that the main factors are the sovereign credit rating, the maturity of debt securities, liquidity and yield of external government bonds, market demand and supply of debt securities and default swaps. The dynamics of the value of credit default swaps on Ukraine’s debt securities is analyzed. The relationship between the swap value and geopolitical factors in the formation of the international investment position of the state is shown. In order to increase the efficiency of credit default swaps in external public debt management and minimize the interest rate risks of external government borrowings, it is suggested to amend norms and regulations, providing for the essence of default swap, the composition of the parties, accounting and value formation peculiarities. Article is written in Ukrainian
Prymostka L. O., Krasnova I. V., Lytvynenko O. K.
The Impact of Consolidation Forms on the Growth of Banks' Value (p. 334 - 341)
The article aims at studying the banks’ value and managing it during consolidation in order to identify the relationship between the consolidation form and the growth of the bank’s value. The main consolidation forms are systematized and generalized taking into account global and domestic experience, which include the following: mergers, takeover, partial takeover, acquisition of assets, acquisition of specific assets, acquisition of fixed assets, acquisition of residual share, repurchase, recapitalization, exchange. It is noted that the choice of the banks’ consolidation form is determined primarily by the purpose of realizing the business interests of the parties to the agreement. The statistics of the scales of global M&A agreements by consolidation forms is given. 26901 bank consolidation agreements in various forms for the period from 01.01.1965 to 30.04.2019 in 146 countries have been analyzed. It is noted that the dynamics of M&A transactions in the banking business reached peak values in the period from the early 2000s to the end of 2010. It was during this crisis period (the crisis in the IT industry and the global financial crisis of 2007–2008) that 50 % of all consolidation agreements tool place. The country with the largest number of transactions is the United States, and the region dominating the sphere by the total volume of transactions is Western Asia. It is noted that each consolidation form is characterized by a specific set of factors that affect it. As a result, it is these factors that, as a result of the existing cause-and-effect relationships, shape the resulting bank’s value. Research has shown that there is a link between the forms of consolidation processes and the value influencing factors, and this link should be identified to better understand the banks’ value formation before concluding M&A agreements. It is proposed to expand the existing list of factors in research works in Economics, taking into account the business component of consolidation processes. Article is written in Ukrainian
Rudyk N. V.
Measures to Prevent Tax Debt among Small and Medium-Sized Businesses (p. 342 - 350)
The article aims at forming a roadmap for self-reliant control of the absence of tax debt for small and medium-sized businesses in Ukraine. The necessity of conducting tax audits for small and medium-sized businesses in terms of preventing tax evasion has been studied. The article systematizes the types of tax audits provided by the Tax Code of Ukraine (hereinafter referred to as TCU) amid the COVID pandemic. The peculiarities of these audits and their key features are detailed. The necessity to conduct self-reliant control of the absence of tax debt among small and medium-sized enterprises (hereinafter referred to as SMEs) is substantiated based on the analysis of the ratio dynamics of tax debt to tax revenues to the Consolidated Budget of Ukraine. The Roadmap for independent tax control as for the absence of tax debt due from SMEs is suggested. Its structure includes three stages with step-by-step detailing of the taxpayer’s actions at each step. The practical aspect of the roadmap is based on preventive control of taxpayers’ honesty and financial literacy. The implementation of the Roadmap is carried out on the example of SMEs on the simplified system of taxation, and SMEs as single tax payers, using the taxpayer account, which is the key software in the lockdown, as the basis for calculations. The principles of work in the specified electronic resource are visualized. The article considers the tax authorities’ possible areas of work to prevent violations of tax legislation by SMEs. Such areas of work are grouped into 3 fields: taxpayers training, simplification of the taxpayer account, transparency of the uses of taxes paid by a definite SME. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №1-2021
Krasnova I. V., Nikitin A. V., Shevaldina V. H.
Consolidation of the Banking Sector: Determinants and Consequences (p. 98 - 106)
The article aims at substantiating the theoretical and methodological foundations of research in bank consolidation and assessing its consequences in order to identify the relationship between consolidation and the banking market structure. The main preconditions and priorities of consolidation are systematized and generalized, taking into account the theory of financial integration and synergetic interaction. This approach will contribute to deeper understanding of the motives and trends of consolidation in modern conditions. It is noted that the transnationalization and concentration of capital form the basis for market consolidation, which goes through a certain life cycle, the latter being specified by the authors. It is concluded that the universal, integrated nature of financial business and the formation of financial business ecosystems is becoming more widespread. The main changes in financial mediation are identified. Statistics of banking concentration in Ukraine is given. The dynamics of concentration ratio for the period from January 1, 2000 to August 1, 2020 was analyzed, revealing that the market is moderately concentrated. It is stipulated that the higher the combined share of the five major banks in the banking sector, the less likely a domestic merger and acquisition is. Accordingly, the domestic banking market, compared to European ones, has significant potential. It is concluded that the high values of profitability indicators speak of excess demand over supply in the banking market; thus, competitive intensity under such conditions is minimal, even with the withdrawal of most banks from the market. Thus, competition is only declared. In the future, we should expect increased non-interest rate competition. It is noted that competitive intensity depends on the concentration, dynamics and profitability of the banking market. Competition assessment, carried out using non-structural measures, H-statistics, Boone indicators and Lerner index, showed that, since the an individual bank does not build up its range of activity through consolidation, or by redistributing its market share among participants, but due to the growing demand for banking services, and remote services in particular, competition is actually reduced. The research confirmed that the processes of concentration, consolidation and competition are interconnected, and this connection should be identified to better understand the formation of the banks’ functional strategy and their choice of the business model. Article is written in Ukrainian
Onyshchenko S. V., Berezhna A. Y., Filonych О. М.
Budget Mechanism: Methodological Approaches to and the Practice of Budget Decentralization (p. 107 - 122)
Theoretical approaches to the formation of the budget mechanism as a form of practical implementation of budget policy are made more profound; budget decentralization as a budget regulating and stimulating mechanism in the current situation in Ukraine is studiedl and perspective directions of introducing various budget mechanism are outlined. The mechanistic concept was applied to budgetary relations, thus becoming the basis for highlighting the main features of the budgetary mechanism, determining the main provisions of forming the budgetary mechanism. Emphasis is placed on the relationship between budget policy, which is manifested through the dialectical unity of budget strategy and tactics, and the budget mechanism. The budgetary mechanism is defined as a system of measures aimed at influencing the mobilization of optimal funds, their efficient distribution and rational use in order to ensure macroeconomic balance, sustainable development and preservation of state sovereignty, as defined by state policy. It is suggested to integrate the constituent elements of the budgetary mechanism into the appropriate subsystems within its framework, through which the main functions of the budgetary mechanism aimed at achieving the goal are manifested. In order to study a subsystem of the budgetary mechanism, namely the regulatory mechanism, the peculiarities of the manifestation of budgetary decentralization in Ukraine are analyzed. It is proved that the introduction of the subsidiarity principle while constructing the decentralized model of inter-budgetary relations in the unitary Ukraine is currently the best option for it to find a balance between the advantages of budgetary federalism and the unitary form of budgetary relations. Systemic problems of budget decentralization have been identified, namely: decentralization occurs by bringing in new persons to act on the national level; it does not affect the mechanisms of autonomy in decision-making on taxation and the formation of additional sources of local budget revenues; statutory tax benefits for the local tax mobilization significantly reduce the financial resources of local budgets; local budgets remain significantly dependant from the state; in the regulation of local budget revenues, preference is given to transfer instruments, and the share of budget-generating taxes is reduced. Given the theoretical construct of the public sector theory, which gives grounds to the formation of local budget revenues, and the results of the research on budget regulation in Ukraine, budget decentralization processes are only proven to be pretentious, and the need to improve the division of budget authority is identified, while emphasis is made on financial self-sufficiency. Article is written in Ukrainian
Stoiko O. Y., Shubenko I. A.
Assessment of the State of Ukraine’s National Debt and Directions of its Optimization (p. 123 - 133)
The article aims at studying the current state of Ukraine's national debt and developing directions for its optimization. It is established that the currency component in the structure of Ukraine's national debt is slightly lower than the threshold level for the currency component in the debt structure set by the IMF for developing countries. This structure of Ukraine’s national debt indicates the dependence of the domestic financial system on currency exchange rate fluctuations and the need to increase foreign exchange costs for servicing debt obligations. The amount of debt on loans from international financial organizations and government agencies of foreign countries comprises about a third of the total amount of national and guaranteed debt, indicating significant support Ukraine receives from its international partners, especially from the International Monetary Fund. The currency component in Ukraine’s national and state-guaranteed debt indicates high vulnerability of its financial system to currency shocks. It is established that the structure of Ukraine’s national and state-guaranteed debt by types of interest rates is quite optimistic and indicates a low vulnerability of public finances to interest rate risks. The size of Ukraine’s national and state-guaranteed debt in hryvnia equivalent increased during 2013–2020 by more than 4.4 times, and its growth in USD was quite moderate. It is determined that during 2020 the size of Ukraine’s national and state-guaranteed debt increased by 27.7% in hryvnia equivalent, due to the following situations: financing the state budget deficit; the allocation of funds to combat COVID-19; national currency devaluation, etc. The ratio of national and state-guaranteed debt to GDP, reaching a maximum of 81.0% at the end of 2016, gradually decreased to 50.3% at the end of 2019, which corresponds to the norm established by the national legislation. However, the values of this index for the period under review exceed the threshold level of national debt set by international standards for countries with emerging markets (30-50% of GDP). It is shown that the 2013 2019 period saw a tendency to increase the total cost of repayment and servicing of Ukraine’s national debt, which creates the risk of refinancing national debt, causes additional pressure on the state budget and GDP, and limits Ukraine’s ability to finance its social and economic goals of social development. The main risks for Ukraine’s debt obligations are highlighted, and ways to optimize them are outlined. The need to establish a National Debt Management Agency, the activity of which would help reduce both the debt burden and the cost of public debt servicing, is substantiated. Article is written in Ukrainian
Khudolii Y. S., Khalievina M. O.
Financial Technology in Banking Business: Realities and Prospects (p. 134 - 142)
The article aims at studying the place of and prospects for financial technology development in the banking business during the digitalization process in the economy by using both the theoretical and empirical research methods. Having analyzed research works on the topic, the authors systematize the key trends in banking innovations in Ukraine and prove the relevance of financial technology in the banking business during the current digitalization. As a result, the current place of financial technology in the banking business is determined by identifying modern customers’ needs and current market conditions in the field of money services (the growing number of Internet users, gadgets, and hence the growth of the cashless money transfer turnover), and the following prospects are suggested: customer value and the quality of service provisioning (i.e., quickness, flexibility of the business structure and extensive use of various technologies). The results are based on the synthesis and analysis of the achievements of financial technology companies in the Ukrainian and world markets, their cooperation with banks, as well as their actions in the global pandemic, the latter reducing the financial inflow, but at the same time encouraging innovations. Research prospects in this context lie in suggesting the key trends of the future, such as including financial services in non-financial relations, the Internet of Things (seamless payments, where the focus shifts from payment to the service itself, providing long-term interaction between the seller and the buyer); the nature and consequences of changing the format of payment services in the domestic market (PSD2). Still, much will depend on further results of the work of the Ministry of Digital Transformation of Ukraine and the actions of the regulator, i.e. the National Bank of Ukraine, concerning the digital development of the financial sector. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №2-2021
Korneev V. V., Khaustova V. Y., Khodzhaian A. O.
Progressive Taxation of Individual Income in Islamic Countries (p. 187 - 193)
The economic results of the development of Muslim countries have raised the question of the existence of an increasingly focused Islamic financial and tax model. Taxes in the Islamic economic model provide an implicit link in the relations between the state and individuals, thus determining the limits of conditioned freedom and mutual obligations. The article is aimed at identifying the indicative features of progressive taxation of individual income in some Islamic countries. The research results show that Islamic countries are characterized by the unity of religion (faith) and such elements of the social system as the organization of power, as well as family, economic and other relations. The boundaries of the personal and the public, the individual and the national are transparent and strictly regulated. The peculiarities of the Tax Institute in Muslim countries, terms of taxation and tax usage rules are considered. It is proven that nowadays approaches to taxation in Islamic countries are diverse. It is determined that progressive taxation of individual income is widely used in Turkey, Pakistan, Tunisia, Indonesia, Nigeria, and other countries, and partly in Saudi Arabia; "tax heavens" are typical for the UAE, Kuwait, Qatar, Bahrain, and Omani; proportional taxation is still used in Malaysia, Sudan, and Kazakhstan. The main types of taxes in Muslim countries are analyzed, their evolution is studied. Modern foci of progressive taxation of individual incomes in specific Muslim countries are revealed. The advantages of the Islamic financial model in terms of tax policy modernization and compliance with tax discipline, unconditional fulfillment of obligations and concluded agreements are identified. It is substantiated that using some elements of the progressive tax scale applied in the practice of Islamic finance can prove useful in a number of areas, providing budgetary and social balance in the "corridor of opportunities", bringing mutual responsibility of citizens and the state in fulfilling obligations, creating an annuity and mutually beneficial economic behavior pattern. It is proved that the progressive tax withdrawal of a part of large incomes will give a restrictive and restraining result of control over their redistribution in the public interest, as the socio-economic behavior of individuals, their powers and responsibilities must be balanced. Article is written in Ukrainian
Kornіvska V. O., Yaremenko O. L.
Household Debts: Global Experience of Restructuring Debts and Ukrainian Reality (p. 194 - 202)
The research results on the global problem of household debt growth, its causes, consequences, social context, and influence on the formation of aggregate demand are presented. It is substantiated that with the growth of debts, households are losing their share in aggregate demand, and the state is becoming an increasingly influential player compared to others due to the strengthening of fiscal and regulatory government influence. Facing the increasing debt pressure, households start reducing consumption, thus negatively affecting aggregate demand. The government, on its part, trying to improve the situation, increases subsidies and provides policies that encourage banks to restructure loans, develops restructuring programs, etc. These trends are proven to be of an urgent character and should not be routinized, in order not to distort the market environment or increase the direct influence of the state on purely market processes. The analysis of global experience, carried out in the article, shows that in the condition of economic destabilization debt restructuring is the only way to help the population out of the debt trap. Special attention is paid to the analysis of the ways to harmonize the accumulation of household debt through restructuring, to identify its market mechanisms, and to prove that the state should provide extensive assistance to households trying to overcome the debt trap. Three options for the state participation in the restructuring process have been identified: institutional participation (when the state only provides regulatory support); design and implementation of state restructuring programs; adoption of regulations on compulsory restructuring. New Ukrainian norms and regulations related to forced debt restructuring are analyzed, and their social context is proved to be contradictory. On the one hand, the adoption of corresponding laws became a significant step towards maintaining the social stability of the Ukrainian population against the background of the growing poverty and increasing total indebtedness of the people (even in the sphere of payments for public utility services), and the growing currency risks. On the other hand, Ukrainian market players often show moral hazards of non-compliance with the conditions of debt discipline, which have become part of the financial behavior, negatively affecting the general financial culture. Article is written in Ukrainian
Storonyanska I. Z., Dub A. R.
Improving the Institutional and Organizational Mechanisms to De-Shadow Relations in the Field of Real Estate Transactions (p. 203 - 209)
Real estate transactions have been one of the most shadowed sectors of the national economy. The COVID-19 pandemic and the quarantine measures introduced in 2020 to prevent its spreading have led to a sharp increase in the shadowing of the real estate sector, thus reversing the positive trend of the previous years. The study aims at finding ways to de-shadow the real estate sector and substantiating them. Changes in the level of shadowing relations in the real estate sector in 2020 are analyzed. It is found out that the quarantine restrictions introduced in 2020 had though short-term but major negative impact on activities in the real estate market, thus increasing the shadowing of the real estate transactions sector. Emphasis is placed on letting residential real estate as one of the most shadowed segments of the real estate sector. Gaps in the de-shadowing measures in the real estate sector in recent years are highlighted and critically assessed, in particular: Bill № 3618 “On Real Estate Activities in Ukraine”; Bill № 3928-1 "On Amendments to the Tax Code of Ukraine with a view to stimulate the de-shadowing of income received from letting residential real estate"; introduction of a Multiple Listing Service based on real estate appraisal reports; activities of tax authorities in the field of identifying shadow transactions in the rental market. To minimize the level of shadowing the real estate sector, it is suggested to: conduct public awareness campaign as for the benefits of conducting legal activities in the rental market, e.g., protection of the rights of tenants and landlords in the field of real estate transactions; to amend the Tax Code of Ukraine regarding the taxation of income received from letting residential real estate; create a "Legal Lease" online portal, etc. Article is written in Ukrainian
Tataryn N. B., Yurchenko I. M.
The Impact of the COVID-19 Pandemic on the IGLBs Market in Ukraine: State, Problems, and Development Perspectives (p. 210 - 216)
The article aims at analyzing the Ukrainian market of domestic government bonds (IGLBs) in the context of the COVID-19 pandemic; determining its state, problems and development perspectives. The development of the domestic government bonds market during the coronavirus crisis is considered; the essence and purpose of IGLBs in Ukraine are revealed; IGLBs are classified by type of use. The differences between domestic and external government bonds are determined, and the advantages of the former are indicated; peculiarities of purchasing such securities by individuals and legal entities are revealed; requirements for issuing IGLBs by issuers are indicated, and the most reliable banks engaged in this activity are enumerated; the state of the government bond market during 2018–2020 is studied; the amount of ownership, the share of buyers of securities and the purpose of their purchase for each of the entities are given; the rate and yield of domestic government bonds in Ukraine are analyzed and compared with other countries, such as the United States, Germany, France and others. The study identifies the following problems: the economic crisis caused by the COVID-19 pandemic, the inadequate legal framework on IGLBs, the low level of public awareness of these securities, and others. To overcome these problems, the following actions are suggested: counteracting the coronavirus crisis by combining the efforts of the state and local authorities, business, and the population; directing most of the financial resources in this direction; spreading economic education among the population; introducing a simplified procedure for purchasing IGLBs; and working with banks to increase the availability of bonds purchasing. Statistical data obtained from the official website of the National Bank of Ukraine make up the basis for the study. Article is written in Ukrainian
Kholiavko N. I., Kozlianchenko O. M.
Global Trends in the Banking Sector Digitalization (p. 217 - 224)
The article is aimed at identifying global trends in using modern information technologies in the banking sector, which were formed under the influence of digitalization of the economy. Digitalization is one of the main trends in global economy. Digital transformation has become relevant for business in various areas of economic activity, and the banking sector is not any different. The introduction of a bank card is considered to be the initial stage of the banking sector digitalization. At the present stage of development, banks have a wide range of tools to digitalize their activities, from office operations to customer service, to credit portfolio management, and to risk management. Today, the world's leading banks of various ownership forms can create digital currencies. The most widespread digital technologies in the banking sector are: mobile technologies, "big" data, blockchain, "cloud" technologies, artificial intelligence, the Internet of Things. The application of the outlined technologies allows banks to optimize work processes, reduce operating costs, provide high service rate and convenience for customers, and also generate innovations and bring new banking products on the market. Digitalization makes it possible to track the customer base in real time, to form personalized sets of services for consumers, to restructure revenues and manage the bank’s credit risks. The authors conclude that digitalization is a non-alternative way for a modern bank to develop. Digitalization, introduction of information technologies, and the creation of innovative products are the factors determining a bank's competitiveness in the modern market. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №3-2021
Abramova I. V.
Financial Levers of State Support for Rural Development: European Experience and Domestic Realities (p. 132 - 139)
The article is aimed at substantiating financial levers of state support for rural development from a theoretical and methodological viewpoint, taking into account European and domestic experience, and at developing practical recommendations for their perfecting. The study has been carried out according to the general methodological scheme of the systemic approach using the following methods: statistical and economic, computational and structural, abstract-logical, comparative and analytical, etc. The European experience of providing state support for rural development is analyzed, and ways to adapt it to the Ukrainian reality are outlined. Taking into consideration the cost structure in the joint budget of the European Union, it is clear that the EU member states pay special attention to solving economic, environmental and social issues in the context of sustainable rural development. It is determined that rural communities in Ukraine are in extremely difficult conditions, as unemployment and poverty remain widespread; the level of social, medical, educational, and cultural services provided for the rural population remains low; the infrastructural development of rural settlements is unsatisfactory. Emphasis is placed on the fact that financial support for agriculture and rural areas in Ukraine is focused mainly on their economic development. It is proved that sustainable rural development will be possible through naturally combining its economic, social and environmental components. It is determined that the key role in this process belongs to the state. It is argued that due to such levers of influence as budget financing, soft loans, tax and investment incentives, etc., the state can positively influence the diversification and development of entrepreneurship, increase jobs and employment in rural areas. Emphasis is placed on the necessity to form a social protection system, as well as cultural basis for rural development, provide support for and improvement of the environmental conditions in rural areas. Article is written in Ukrainian
Krasnova I. V., Prymostka L. O., Lavreniuk V. V.
Climate Change Risks in Financial Business (p. 140 - 146)
The article is aimed at identifying, firstly, the features and the ways in which climate change influences the profile of financial business, and secondly, financial risks modification while taking into account climate change risks. Climate change is global, it causes new challenges for corporations, financial institutions and central banks, and for economy, as a whole. Statistics on the scale of the threatening impact produced by climate-re;ated risks on economy and its financial sector are presented. It is noted that the aggregate impact of climate change risks significantly exceeds the losses from the financial markets collapse. In particular, due to the natural disasters in 2020, the world economy suffered losses of about US$ 200 billion. The properties of climate-related risks are systematized and generalized, including the following: unpredictability, radical uncertainty, complex dynamics, chain effect, irreversibility, nonlinearity. Due to the high level of uncertainty, the problem of integrating climate change risks into the risk management system of financial institutions remains particularly complex. The ways in which risks generated by global climate change transform into financial risks are determined. It is noted that, despite the threatening impact of damage caused by extreme weather events and climate catastrophes, the management of these risks is still characterized by a low level of penetration into the system of risk-oriented management of financial institutions. In order for the financial business to effectively manage risks taking into account climate change, innovative approaches of strategic importance have been suggested, namely, green bonds and disaster bonds. The financial stability and sustainable dynamic development of economy will depend on the performance of financial institutions in implementing their policies in this area. Article is written in Ukrainian
Kunytska-Iliash M. V.
Scientific Views on the Structure of the Elements in the Financial Security Management System in Economic Sectors (p. 147 - 152)
It has been clarified that the process of ensuring the financial security of the economy is closely correlated with the establishment of an appropriate management system in this area. The article is aimed at substantiating scientific views on the structure of the elements in the financial security management system in economic sectors. To achieve this goal, it is ascertained that the financial security management system of an economy provides for grounding links and means of interaction with both senior systems (financial security of regions and the state, economic security, national security), and lower systems (financial security of enterprises). It is proved that structural aspects of financial security management in an industry relate to constructing an internal system of elements and organizing their interaction in order to form the unique properties and capacity of the system by management areas. A set of structural elements of the financial security management system in an economic sector is determined, which can be divided into several groups, namely: formation of an institutional and management structure; identification of strategic and tactical guidelines; introduction of a system of economic incentives and support; provision of information and analytical monitoring and control tools; and use of regulatory tools. It is proved that the effectiveness of the financial security management system in an industry is largely determined by the quality of the organizational management structure, rational choice of strategic and tactical guidelines, effectiveness of economic incentives and support, coordination of information and analytical monitoring and control, ability to use broad regulatory tools. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №4-2021
Dubyna M. V., Tarasenko A. V., Tarasenko O. O.
The Essence and Peculiarities of Forming Household Behavior in the Financial Services Market (p. 163 - 172)
The financial services market is essentially a macrofinancial system that is complex, open and dynamic. Households play a key role in the development of such a market, as they actively use the services of bank and nonbank financial institutions. It is the behavior of these economic entities, which is formed under the influence of a number of factors, that generally determines the development of this market. The article is aimed at deepening the theoretical provisions on the nature of the financial behavior of households in order to justify the transformation of such a behavior model. The article considers the nature of the financial behavior of households, its essence, factors influencing its formation, and some types of the behavior, which together make up the model of the outlined behavior. Content analysis of approaches to studying the essence of the category "financial behavior of households" makes it possible to specify the content of this definition and to consider such behavior as “a set of actions” determined by households to manage their own financial resources and to accumulate, preserve, attract, and use them. The authors also study the process of shaping the behavior of households in the financial services market and identifies a set of basic factors affecting it. In particular, it has been found out that individual, personalized determinants play an important role among such factors. It is the presence of these factors that significantly complicates studying the financial behavior of the identified economic entities and makes it impossible to precisely define and describe its models. Having analyzed the nature of the financial confidence of households, the authors have identified the structure of such behavior and identified its basic elements. These include: credit behavior, saving behavior, deposit behavior, investment behavior, tax behavior, insurance behavior, and payment behavior. Article is written in Ukrainian
Khanin I. H., Sopin Y. O.
Electronic Payment Systems: Operation Peculiarities and Economic Efficiency Assessment (p. 173 - 180)
The PayTech sector, which is transforming payment methods, has become one of FinTech's largest segments. Electronic payment systems (EPS) are developing actively and acquiring certain specific features, which are important for their creation and refinement. The achievement and maintenance of the EPS economic efficiency is the fundamental prerequisite for their sustainable development, which fact is especially important for payment services providers. The article is aimed at clarifying the nature and structure of EPS, and singling out the features of their functioning and the basis for assessing their economic efficiency. The impact of the electronic payment development on the quality of goods-money relations and economic exchange is analyzed, and the process of forming a new payment mechanism in the markets is described. The most common payment methods in the B2B and B2C segments are considered, namely the automated clearing house, cash, checks, credit card, debit card, commercial credit card, and contactless payments. The essence and features of the electronic payment systems classification are specified. It is substantiated that they form the development basis for various FinTech areas. The functions of electronic payment systems are analyzed, and based on these functions the systems are considered as part of the payment infrastructure (functions of service, transfer, information, control, information and protection, organization). The main elements of an electronic payment system, the main blocks responsible for its functional implementation, and services for non-cash electronic payments are analyzed. The emergence of the electronic payment services market is substantiated. The roles of the new participants in this market are defined, which are the payment processor and payment gateway. The technological model of an electronic payment transaction is presented, which is transaction data processing and subsequent data exchange between the participants of this transaction within the payment system. The necessity of creating a new legal framework on payment services provision is substantiated. The issues and bases of the economic efficiency assessment in the field of electronic payment services are considered. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №1-2022
Рopelo O. V., Kholiavko N. I., Dubyna M. V., Tarasenko A. V.
Changes in Household Financial Behavior Caused by Innovative Information Technologies of Financial Institutions (p. 105 - 112)
The article is aimed at identifying and analyzing changes in the financial behavior of households caused by innovative information technologies used by financial institutions. The study considers the leading innovative technologies in the financial sector and outlines areas of their application from the standpoint of households. The advantages, as well as new and/or additional opportunities arising in households due to using innovative information technologies by financial institutions are identified and characterized. It has been proven that in order to succeed in the financial market, financial institutions need to adapt quickly to changes in consumer needs and respond promptly to customer requests and desires. It has been found out that the financial market today is becoming more segmented, and among its participants are new groups of customers who until recently were not a priority for financial institutions, e.g. low-income households, young people and adolescents, retired people etc. It is also proved that in the situation when financial technologies are actively used and spread, households not only receive an opportunity to use new financial products, services and tools specially developed for them, but also to use new methods and approaches, as well as various forms of their servicing, communication and interaction leading to positive consequences (strategic socio-economic effect). It is substantiated that successful introduction of innovative information technologies depends on the customers’ willingness to use them, which in its turn is conditioned by the customers’ mastery of the necessary knowledge and skills, as well as their ability to apply skills competently and successfully. The main changes in the financial behavior of households are highlighted and outlined taking into account factors that promote or constrain the use of innovative technologies by households, and those that affect such use by financial institutions. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №2-2022
Vilenchuk O. M., Dema D. I., Kurovska N. O.
Modern Approaches to Prudential Regulation in the Insurance Market of Ukraine (p. 132 - 139)
The article reflects modern approaches to the organization and implementation of prudential regulation in the sphere of insurance. From a scientific point, the expediency of taking the State regulatory measures to increase the business activity of participants in the insurance process and enhance the financial capacity of companies to fulfill their contractual obligations is specified. The article is aimed at a theoretical-methodological substantiation of prudential regulation processes in the insurance market of Ukraine. In the course of the research, a rather positive dynamics of the development of key indexers of the insurance services market for 2016-2020 is identified. This applies, first of all, to the indicators of total assets and the condition of formed insurance reserves, the identified tendency was observed against the background of a significant reduction in insurance companies in the market. Simultaneously, it is found that as of the beginning of 2021, three-quarters of insurance companies comply with solvency requirements and financial standards. It is emphasized that the current conditions of risk-causing market environment require the implementation of balanced regulatory and supervisory activities in the insurance market in accordance with the Pan-European requirements of «Solvency I» and «Solvency II». A critical analysis of key articles of the Law of Ukraine «On Insurance» (2021) on ensuring solvency and investment activity testifies to their innovative nature and direction of integration of the national market into the European insurance space. The authors’ own vision of prudential regulation is formulated, which consists in systematic coordination of actions of both the State-based and non-state institutions in the insurance market to effectively neutralize the possible risks associated with the livelihoods of society. A conceptual vision of further development of prudential regulation in Ukraine is defined, which is based on three following components: increasing transparency in the activities of insurance companies, increasing requirements for the solvency of insurers as a guarantee of their fulfillment of contractual obligations, improving the corporate governance system as a basis for ensuring the competitiveness of the insurer in the market. Prospects for further research are the digitalization of regulatory processes in the insurance market of Ukraine. Article is written in Ukrainian
Doroshenko N. O., Kravchenko S. S.
NBU and Its Role in the Implementation of Monetary and Credit Policy in Wartime (p. 140 - 144)
The article examines the purpose, methods and tools of the monetary and credit policy of the National Bank of Ukraine. It is determined that the NBU is the main State-authorized institution in Ukraine, which is responsible for planning and implementing monetary and credit policy. Monetary and credit policy is a complex of measures in the field of money circulation and credit, which are intended to ensure the stability of the monetary unit of Ukraine due to the introduction of regulated by law funds and techniques. It is established that the financial sector is the key element of the national economy; its vital functions ensure the sustainable development of the economy, the creation and distribution of financial resources and services, the accumulation of investment capital, as well as the improvement of macroeconomic and monetary indicators. In today's harsh conditions such as: rising inflation, destruction of transport infrastructure, decline of business, reduction of sown areas, blockade of ports, devaluation of the UAH, growth of the budget deficit, issues of monetary regulation are becoming extremely important. The war projected on the country's economy, has become a difficult challenge for the National Bank in improving and adjusting the current monetary and credit policy, finding innovative mechanisms for its implementation. Carrying out an active foreign policy, attracting funds from the IMF, the World and European Banks, opening a special account to raise funds from individuals - these are some of the tools used by the NBU in wartime. On the other hand, the pressure on the world community is aimed at ending trade relations with the aggressor country, helping to minimize any attraction of funds into the Russian budget, thus depriving them of the opportunity to finance the war. Another important tool is the analysis of the world experience of countries in resolving the postwar crisis, and the adoption of their tools and mechanisms for economic recovery - all this is the purpose of this article. Article is written in Ukrainian
Melnyk V. M., Rudenko V. V.
The Influence of the Fiscal Mechanism on the Investment Development of Economic Entities in the EU Countries and in Ukraine (p. 145 - 162)
The fiscal mechanism, which serves as a means of implementing fiscal policy, through the organization of fiscal relations by changing the mechanisms for the formation of budget revenues and expenditures, directs established fiscal relations, manages the channels of passage and directions of fiscal flows, clarifies the proportions of the distribution of financial resources and, thus, ensures the regulation of investment development of economic entities. For Ukraine, in the context of its European integration aspirations, the study of the influence of key elements of the fiscal mechanism on the implementation of investments of enterprises in the EU countries is of particular relevance. Therefore, the article is aimed at forming a holistic view of the elements of the fiscal mechanism that lead to changes in investment processes at the micro level in the EU countries and in Ukraine, as well as conducting a correlation-regression analysis to identify the quantitative impact of the fiscal mechanism on the investment development of economic entities. In the course of the research, both the national and the European practice of taxation of enterprises was considered, the total tax burden on legal entities was calculated, the scale of capital transfers and government guarantees for enterprises in the EU countries and in Ukraine was assessed. Also, a correlation-regression analysis of the influence of elements of the fiscal mechanism on the investment development of economic entities in the EU and Ukraine was carried out, which showed that the greatest influence on the implementation of investments of enterprises was carried out by the scale of taxation of enterprises, as well as their generalized tax burden. Since capital transfers and government guarantees were provided only to individual legal entities, they did not have a significant impact on the total investments of enterprises in the EU countries and in Ukraine. As a result of the research, it is determined that in Ukraine, in order to ensure the investment development of economic entities, it is necessary to take into account the experience of the EU countries and improve those elements of the fiscal mechanism that have the greatest regulatory impact on investments. Such a component of the fiscal mechanism are taxes, especially in terms of effective provision of tax benefits. Article is written in Ukrainian
Stoiko O. Y., Shubenko I. A.
Assessing the Financial Indicators of Activities of Territorial Communities of Ukraine (p. 163 - 174)
The article is aimed at monitoring the main financial indicators of the activities of territorial communities and determining the directions for restoring their financial potential. The article specifies a positive dynamics of increasing the total revenues of local budgets of Ukraine for 2015-2021, except for 2020, which received the smallest amount of interbudgetary transfers to local budgets over the past five years. The tendency to increase the share of own revenues of local budgets (general fund without transfers) in GDP and revenues of the consolidated budget of Ukraine during 2015-2021 is identified, which indicates, on the one hand, the increase in the revenue base of local budgets, and on the other hand, a decrease in the concentration of financial resources at the central level. It is determined that the share of expenditures of local budgets in GDP and in the consolidated budget of Ukraine during 2015-2021 decreased, which indicates the dominant role of the State budget expenditures that provide funding for the national needs of socioeconomic development of our country. The revenues and expenditures of the general and special funds of local budgets of Ukraine for 2021 are analyzed, the excess of revenues over local budget expenditures this year has provided a surplus of these budgets. The structure of local budgets of Ukraine by types of revenues and by tax revenues is researched in the plane of regional budgets and budgets of territorial communities for January-December 2021. The proportion of own revenues and the general fund of oblasts in the total amount of revenues of local budgets in the plane of regions of Ukraine for January-November 2021 is analyzed. The dynamics of local budget revenues per capita in terms of regions of Ukraine for January-November 2020-2021 is examined, which indicates an increase in the financial potential of all regions of Ukraine for the specified period. The expenditures of local budgets (general and special funds) according to the functional classification for January-December 2021 are analyzed. The proportion of expenditures on the maintenance of local self-government bodies in the expenditures of the general fund of local budgets of Ukraine for January-November 2021 is analyzed. The carried out analysis of financial indicators for January-November 2021 showed the existence of a significant differentiation in the resource provision of regions and the ability to provide the necessary public services to the citizens in the relevant territories. It is determined that the main task of the State policy at the local level in the postwar period is to facilitate the restoration of the financial potential of the territories affected by hostilities and to provide their citizens with an adequate level of public services. The basic principles of restoration and development of Ukraine on the basis of the conception of sustainable development, the European Green Deal and taking into account the key role in this process of local self-government are distinguished. Article is written in Ukrainian
Khanin I. H., Sopin Y. O.
General Tendencies in the Development of the Electronic Payment Services Market and the Problems of Ensuring the Economic Efficiency of Their Provision (p. 175 - 183)
In the context of the evolvement of the digital economy, the use of digital technologies in the financial sector (FinTech) and for the purposes of payment (PayTech) is increasing. The global market of electronic payment services (EPS) is developing intensively, which actualizes the problems of its effectiveness. The aim of the study is: to determine the general tendencies in the development of the EPS market and the main problems of ensuring the economic efficiency of their provision. The study is based on an analytical frame that defined the analysis blocks and the sequence of material. Statistical, structural, functional, institutional, logical-historical analyses were used. The publication demonstrates the positive global dynamics of the EPS market development in close connection with the development of e-commerce. Structural trends in the development of the EPS market are distinguished. The specifics are defined and features of the functioning of this market are substantiated; attention is focused on the specificity of the EPS market in the EU and its elements. The peculiarities of formation of EPS market regulation systems, including in the EU, are shown. It is emphasized on the development of the EPS market in Ukraine and its integration into the international space. Strategies for the provision of EPS, types of strategies for expanding the activities of enterprises-providers of these services and the stage of their growth are singled out. The definition of problems of efficiency of EPS provision covers: adaptation to regulatory requirements, competitiveness (determinants defined), risk management, innovation activities (varieties of innovations defined), creation of payment ecosystems. The results have theoretical value, can be used in the practical activities of EPS providers, in the State regulation of this market and by the entrepreneurs interested in startups. In the future, it is planned to allocate the directions of increasing the level of economic efficiency of EPS provision, which will contribute to the development of the digital economy and cause positive social effects. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №3-2022
Koliada T. A., Prozorov Y. V.
Localization of Global Mechanisms for Attracting Credit and Investment Resources to Strengthen the Financial Solvency of the Territorial Communities of Ukraine (p. 149 - 155)
The purpose of the article is to deepen and develop the scientific foundations of localization of global mechanisms for attracting credit and investment resources in the context of strengthening the financial solvency of territorial communities of Ukraine in the postwar period. The article defines the essence and importance of the financial solvency of territorial communities in ensuring the postwar reconstruction of Ukraine; the best practice of localization of global mechanisms for attracting credit and investment resources to the level of territorial communities / municipalities is revealed; the directions of strengthening the financial solvency of territorial communities of Ukraine in the period of postwar reconstruction through a combination of global and local mechanisms for attracting credit and investment resources are substantiated. A structural analysis of local budget expenditures according to the economic classification was carried out in order to identify tendencies in changes in the dynamics of capital expenditures for the period 2014-2021. It is emphasized that in the current conditions it is necessary to look for alternative sources of revenues for the implementation of relevant expenditures of local budgets, since their volumes and directions of expenditure have changed dramatically. Based on the analysis of foreign experience in financing capital expenditures of local government budgets, it is proved that in the context of global growth of public debt in all countries over the world, investment instruments look to be the most attractive, from the standpoint of attracting resources for capital expenditures. The main macroeconomic and legislative risks that threaten the investment climate of Ukraine, apart from military aggression by the russian federation, have been identified. The possibility of attracting investments through the system of international financial organizations and development banks both at the local and regional levels in order to finance the restoration of infrastructure of territorial communities of Ukraine is proved. Proposals as to a synergistic combination of global and local approaches to financing the postwar restoration of territorial communities are substantiated. Due to the projected deficit of local budgets in the postwar years, communities need to start using mechanisms for using new financial instruments of the international market – social, climate, green bonds, impact bonds, and hybrid financial instruments. It is proved that the key element of the financial recovery program should be the newly created after the end of the war Ukrainian Bank for Reconstruction and Development (UBRD). Prospect for further research in this direction is to identify the optimal capital structure of local development institutions and analyze the priority directions of investment in the sphere of financial and credit support for the postwar reconstruction of territorial communities in Ukraine. Article is written in Ukrainian
Kornіvska V. O.
Digital Transformations: The Risks of Customer-Oriented Finance (p. 156 - 163)
The publication presents modern ideas concerning the world of digital financial services being imperceptibly, conveniently and effectively integrated into the daily existence of consumers on the basis of a customer-oriented approach; the mechanisms of its implementation and prospects for development in the business environment and consumer space are presented. It is concluded that in the context of the dominance of the digital financial industry, the service provider, having exclusive information about the consumer, also having a mobile and flexible system of combining professional analysts and smart dashboards, using a range of innovative financial solutions, becomes an indispensable, built-in part of the operational activity of the client, who will increasingly rely in decision-making on such integrated coordinators of his activities. The processes of loss of financial subjectivity by consumers of financial services due to delegation of financial decision-making to service providers (platforms) are highlighted. The socioinstitutional transformations that made possible a customer-oriented breakthrough in financial activities, namely the perception of transparency of life, confidentiality of information and its protection, which radically changed the idea of information asymmetry, its content and effects of influence, are substantiated. The peculiarities of localization of digital lending are determined, namely: operations in markets where traditional banking is not available owing to the underdevelopment of the country, region, banking infrastructure, remoteness of banking institutions from direct customers; transactions among segments of the population that do not have access to lending in traditional banks owing to the lack of credit history. The risks of activation of digital lending, consisting in an increase in the debt burden and monopolization, are pointed out. The tasks of the State policy in the financial sphere in connection with the implementation of the digital development strategy in Ukraine are characterized. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №4-2022
Dub A. R., Medynska T. V.
The Tax Policy During the Wartime and Its Impact on the Local Budget Revenues (p. 214 - 221)
The easing of tax legislation after the outbreak of war was aimed at supporting business and ensuring the functioning of the economy. However, its impact on local budget revenues was ambiguous. Some changes to the tax legislation during martial law had a negative impact on local budget revenues, while others had the opposite effect. The purpose of the article is to identify the impact of tax policy on the formation of local budget revenues during the wartime and to assess the prospects for filling local budgets with tax revenues in the short term. The publication characterizes the tax changes introduced after the outbreak of war in terms of taxes that have a direct impact on the formation of local budget revenues – personal income tax, single tax, land payment, tax on real estate other than land, excise tax on fuel, alcohol and tobacco products. The authors analyze the tendency in changes in tax revenues of local budgets by region. It is found that the introduced tax changes have had a negative impact on local budget revenues from property tax (land payment, tax on real estate other than land, transport tax) and from excise tax on fuel. At the same time, the growth of tax revenues from personal income tax, single tax, and excise tax on alcohol and tobacco products in total ensured a 13.5% increase in local budget revenues compared to the previous pre-war year. However, against the background of the overall growth of local budget revenues, there was a decline in tax revenues in the regions, some parts of which remain under russian military occupation (Zaporizhzhia, Kharkiv, Kherson, Donetsk, and Luhansk regions). The authors critically assess and substantiate the prospects for filling local budgets with tax revenues in the short term. In the near future, we can expect an increase in tax revenues of local budgets, given the possible abolition of «tax relaxations» against the background of the successes of the Armed Forces of Ukraine, which positively affect the business expectations of enterprises and intensification of their business activities. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №1-2023
Arzhevitin S. M., Makarov O. Y., Krasnova I. V.
Monetization of the Global Economy: The Trends and Features (p. 161 - 169)
Monetary support of the economy represents a necessary prerequisite for ensuring sustainable economic development, which is a priority strategic direction of public policy of any State. The purpose of the article is to identify the features and trends of monetary provision of the world economy in general and in terms of groups of countries, which will contribute to a better understanding of the relationship between economic development and the process of monetization of the economy. The concept of «monetization of the economy» is distinguished as a state and as a process. In the context of management, the monetization of the economy should be considered as a process that is a product of a reaction to the measures of public policies to manage the supply and demand for money, which is expressed in the remonetization and demonetization of the economy, while the state of monetization of the economy is proposed to be considered as a criterion for the adequacy of monetary provision to the economy. It is noted that a sufficient level of monetary provision of the economy has a positive impact on economic development, the dominant component of which is defined as economic growth. The analysis of the monetization of the world economy in the dynamics for 2000-2020 reveals a general trend towards monetary expansion of world economies. Based on data for 133 countries, the article identifies an increasing correlation between the level of monetization of the economy and economic development in the years of 2000, 2010 and 2020, which shows the importance of ensuring the processes of remonetization of economies for the economic development of the global economy. It is determined that the monetization of the world economy has a general upward trend, which intensifies after the passage of economic crises. The hypothesis that there is a link between the level of monetary support of the economy and economic development in other countries is justified. The existence of a positive relationship over the past 20 years, which has been strengthening over time, has been revealed. Several countries have a generally high level of monetization, but do not have tangible progress in economic development, which is primarily due to the non-monetary features of the development of these countries. Article is written in Ukrainian
Blahun S. I.
Analyzing the Trends in the Development of the Monetary System of Ukraine (p. 170 - 184)
The successful functioning of the national monetary system determines the efficiency of the country’s money circulation, the effectiveness of monetary regulation measures taken by the country’s central bank, and the ability to meet the needs of consumers for various financial services, as well as the effectiveness of measures to rebuild our economy in the post-war period and the ability to function normally under martial law. The purpose of the article is to analyze the trends in the development of the monetary system of Ukraine, to identify the stages of its formation along with the main problems in the current period. The publication examines the formation and stages of development of the monetary system in Ukraine, namely, identifying the following key stages: since 1991 – the beginning of the institutional formation of the monetary system; since 1996 – introduction of the national currency; since 1999 – overcoming the global financial crisis of 1998 and further development of the national monetary system; since 2009 – overcoming the consequences of the global financial crisis of 2008; since 2015 – overcoming the consequences of the russian-Ukrainian war of 2014; since 2020 – overcoming the consequences of the global financial crisis of 2019, accelerated by the coronavirus pandemic; since 2022 – stabilization and overcoming the consequences of the active phase of russia’s aggression against Ukraine. Some key indicators characterizing the country’s monetary system are analyzed, namely: the dynamics of the country’s monetary base, changes in the discount rate, annual growth in the consumer price index, dynamics of the number of operating banks and their assets, dynamics and structure of loans granted by banking institutions, changes in the return on assets and capital of banking institutions. The main risks and causes of their occurrence in the monetary system of Ukraine during the wartime are analyzed. The main current problems of the monetary system of Ukraine in the wartime period are identified, and some directions for overcoming them are proposed. It is proposed that in order to sanitize the banking sector, it is necessary to withdraw insolvent banks from the market; to ensure inflationary stability, it is necessary to ensure a return to the implementation of inflation targeting policy; to restore the economy, in particular the real sector, it is necessary to ease the requirements for regulating loaning activity, to introduce instruments for targeted stimulation of loaning activity of banking institutions. Article is written in Ukrainian
Kaneva T. V., Karpenko M. Y.
The Local Budgets’ Revenues as an Instrument for Ensuring the Socioeconomic Development of Territories (p. 185 - 191)
The purpose of the article is to disclose and deepen the theoretical provisions on the nature and role of the revenue side of local budgets in ensuring the socioeconomic development of territories. The State financial policy should be focused not only on solving urgent current problems and tasks, but also have a perspective character, which consists in creating the preconditions for socioeconomic development. The article conceptualizes the role of the local budgets’ revenues in ensuring the socioeconomic development of territorial communities. The main functions of local budgets are defined. The concept of sustainable development and a totality of indicators that characterize it are studied. The theoretical aspects of the impact of local budget revenues on socioeconomic development are revealed. The advantages of budgetary decentralization are determined, the indicators of budgetary decentralization in the field of revenues are considered. The provisions on the impact of decentralization on socioeconomic development are generalized. The authors applied a system approach. They also used the dialectical method, methods of synthesis and analysis, comparison and generalization. It is substantiated that local budgets play a significant role in regulating socioeconomic processes, performing both distributive and regulatory functions. Local institutions should have sufficient financial resources at their disposal to finance public services and infrastructure development. The transformation of interbudgetary relations is intended to increase fiscal responsibility and motivation to accumulate own budget revenues to cover expenditures. It is defined that fiscal decentralization is aimed at improving the quality of public administration and the formation of financially viable territorial communities. The decentralization processes are intended to improve the quality of public administration and form financially viable territorial communities in which the basic set of public services will be as close to the consumer as possible, and the quality of these services will meet the established criteria. Article is written in Ukrainian
Yakushko I. V.
The Role of Fiscal Policy in Ensuring the Competitiveness of the National Economy (p. 192 - 197)
The article considers the role of fiscal policy in ensuring the competitiveness of the national economy. In particular, the essence of fiscal policy is defined and the basic scientific approaches to scientists’ understanding of the content of economic competitiveness are analyzed. It is substantiated that such competitiveness is directly related to the competitiveness of the fiscal system. Considering the structure of the fiscal system and the main directions of fiscal policy, the article determines that the tax system plays an important role in shaping such a policy. It is substantiated that the overall level of competitiveness of the country’s economy depends partly on the efficiency of tax competition in the country. To this end, the article deepens the theoretical provisions of understanding the essence of this type of competition, which is implemented on the basis of an analysis of approaches to its consideration available in the scientific literature. In general, the authors determine that tax competition, in the current realities, is an important and integral component of the entire process of forming an appropriate level of competitiveness of the country in the global markets of goods, services, raw materials and, especially, markets of capital. As the experience of many countries shows, a transparent and efficiently functioning tax system in the country helps to attract foreign investment in the real sector of the economy, in particular in high-tech spheres. So, the specific features of this type of competition are specified and it is found that the competitiveness of the tax system is determined through a comparative analysis of its parameters from the indicator of functioning of tax systems in other countries. Analyzing the essence of fiscal policy, peculiarities of its development and implementation, the article expands the theoretical foundations of the ontological relationship between such a policy and the overall level of competitiveness of the national economy. It is determined that, on the one hand, such a policy is a component of the economic policy of the State and, accordingly, an integral part of economic relations, and on the other hand, it can actively influence the functioning of other subsystems and objects that have the ability to exert external influence on the development of the national economy. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №2-2023
Yevtushenko Y. V.
The Current Approaches to the Management of Financial Resources of Housing Construction in Ukraine (p. 198 - 203)
The purpose of this article is to study the role of the financial resources management process in ensuring the efficiency of functioning of economic entities of housing construction. The author substantiates the leading role of housing construction in meeting the primary needs of society and forming the key prerequisites for the development of the national economy. The existing approaches to the management of financial resources in modern conditions are generalized, which allowed to emphasize the need to apply a system-synergistic approach in the process of managing financial resources by economic entities in housing construction. Based on a generalization of existing approaches to the interpretation of the essence of the category of «financial resources», the author’s own interpretation of the category of «financial resources of housing construction» is proposed, allowing to highlight their leading role in the formation of financial potential, stimulation of the mechanism for counteracting possible risks and threats in the sphere of housing construction. The author proposes an original approach to building an algorithm for managing the financial resources of economic entities in the housing construction business, which, unlike the existing ones, allows taking into account their type of financial support policy. The necessity of allocating three types of policy of financial support of economic entities in housing construction is substantiated, namely: moderate, offensive, and deterrent. This will ensure the maximum effect of housing development in the long term by combining all available resource components. The author emphasizes the possibility, due to the sufficiency of all types of resources, to facilitate the rapid restoration of housing infrastructure, taking into account the latest innovative approaches to construction and energy saving. The system of the following principles that should become the basis for managing the financial resources of a housing construction entity is proposed: sufficiency, cost minimization, efficiency, financial monitoring and response, variability. Article is written in Ukrainian
Caprian Iurie
The Application of Artificial Intelligence for the Purpose of Combating Bank Fraud (p. 204 - 212)
Artificial intelligence (AI) is a technological (informational) complex designed to imitate human intelligence to perform tasks that previously required human input. AI has become an important component of the new economic and financial processes, with applications in various fields, including in the banking sphere. The purpose of this publication is to present the essence of AI through the lens of benefits and specific areas of the banking industry, including for combating bank fraud. For this, the author used the publications accessible in the form of analytical reports and expert views. Then a synthesis image was formed on the topic addressed and the related conclusions were formulated. The conducted study demonstrated the high potential of AI for promoting the innovative process on the banking market, raising the quality level of banking products based on deep knowledge of market trends, preferences and customer behavior. In the same way, AI has become an important applicable component within the banking institutions' divisions for management of placements and risks. AI has also become an important component in the activity of ensuring the cybersecurity of banks and the security of customers' banking operations, as well as combating bank fraud in different forms. Article is written in English
Lavreniuk V. V., Zhuravlev O. S.
Bank Liquidity Management at the Macro and Micro Levels (p. 213 - 223)
The article is aimed at deepening and systematizing the theoretical and methodological foundations of liquidity management at the macro and micro levels. The state of liquidity of the banking system of Ukraine during the war period is analyzed and the shortcomings of the practice of liquidity management of banks at the macro and micro levels are allocated. It is found that, despite a sufficient level of liquidity of domestic banks and moderate systemic liquidity risk, banks have problems with a fixed-term deposit structure, a significant liquidity surplus, increased funding costs and increased competition for business funds. The theoretical and methodological foundations of liquidity management at different levels are systematized and supplemented, taking into account the actual problems of liquidity management of domestic banks. Two structural and logical schemes of liquidity management of the bank at the micro and macro levels have been built, which contain conceptual foundations for building liquidity management (principles, methods, instruments, communication) and take into account modern regulatory requirements (central bank, Basel committee). At the micro level, the process of liquidity management and liquidity risk management is differentiated, taking into account the channels of interaction, specific methods and instruments. Methods and instrumentarium for liquidity risk management in the process of bank liquidity management have been expanded. A universal, step-by-step algorithm of liquidity management process at the micro level is proposed. The instrumentarium of liquidity monitoring at the bank level is systematized, taking into account modern practice. The conceptual foundations of liquidity management at the macro level have been supplemented, in particular: 1) management instruments have been supplemented by the indicative ones; 2) the principles have been expanded, synergy, behaviorality, controllability have been added; 3) the functions and objectives of management are adjusted taking into account crisis factors. Emphasis is placed on proper inter-level communication and coherence of strategies, policies, methodologies and procedures for managing liquidity of banks. It is determined that the regulator at the macro level should form an appropriate atmosphere for effective liquidity management at the micro level, and banks should take a responsible (taking into account system-wide goals) approach to the liquidity management. Prospects for further research in this direction are: 1) analysis of the impact of technological innovations on the process of liquidity management at the macro and micro levels; 2) study of the global context, namely the impact of systemic shocks of different jurisdictions on the liquidity of the domestic banking system. Article is written in Ukrainian
Marhasova V. H., Dubyna M. V.
Attraction of Debt Financial Resources in the Foreign Market: The Experience of Ukraine (p. 224 - 230)
The current macroeconomic and political situation in Ukraine is characterized by instability and impact of a number of adverse factors. In such circumstances, Ukraine's debt relations are focused on the increased need to attract financing. At the same time, because of the ongoing war, Ukraine's expenses are constantly and rapidly growing. The revenue side of the budget under such conditions is limited. Today it is impossible to adhere to the chosen strategic benchmark – reducing the share of the external public debt and loans in foreign currency. The article is aimed at studying the practical aspects of attracting financing by Ukraine in the foreign market with an emphasis on the problems accompanying this process. The article examines the main indicators of attracting financial resources in the foreign market, the structure of Ukraine's debt in terms of currencies, as well as an overview of the risks that accompany the current debt situation. The primary task of Ukraine's debt policy is to optimize the attraction of financial resources in the foreign market within the security corridors. Taking into account the experience of attracting financial resources both in the domestic and foreign loan capital markets will allow defining the existing problems and identifying the directions for optimizing the attraction of such financing in the current crisis. Despite the significant need for financing and limited opportunities to attract resources in the domestic market, it is proposed to limit the use of external sources. In the current period, it is proposed to focus on restructuring the existing debt and finding opportunities to attract soft lending programs. Further, in the postwar period, a clear and flexible debt policy should be formed with the definition of quantitative benchmarks for Ukraine's debt security. However, prospects for solving Ukraine's debt problems will appear only after the settlement of the political situation in the country. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №3-2023
Vovchak O. D., Yendorenko L. O.
Improvement of the System of Financial Monitoring in Banks of Ukraine and Assessment of Compliance Risks (p. 237 - 243)
The aim of the article is to study the problems/shortcomings, current challenges and opportunities in order to ensure an efficient and comprehensive approach to improving the system of financial monitoring in Ukrainian banks and, further on, assessing compliance risks. Based on the carried out analysis of scientific works of a number of scholars, normative legal acts of the National Bank of Ukraine, taking into account international practice, ways to improve the system of financial monitoring in Ukrainian banks, and assessment of compliance risks were considered. The article identifies the prerequisites that are of driving nature and require continuous improvement of the system of financial monitoring and compliance risks; the problems of prevention and counteraction to legalization (laundering) of proceeds from crime, financing of terrorism and financing of proliferation of weapons of mass destruction are analyzed, its difficulties and shortcomings are identified; the importance of effective interaction between the State bodies is emphasized; the measures of the State regulator – the National Bank of Ukraine – in the sphere of financial monitoring are analyzed; the principles that should be followed in the assessment of compliance risks are described; the external and internal factors that determine the efficiency of compliance are indicated. The necessity of improving the system of financial monitoring in the banks of Ukraine along with assessment of compliance risks is substantiated. Measures to improve the system of financial monitoring, including the assessment of compliance risks, are proposed, recommendations for the regulatory activities of the National Bank of Ukraine are presented. Prospects for further research in this direction are the improvement of: the system of financial monitoring and assessment of compliance risks, which can occur by amending the regulations in force in Ukraine, while taking into account international practice; the internal banking system for preventing and combating legalization (laundering) of proceeds from crime, financing of terrorism and financing of proliferation of weapons of mass destruction in banks. Article is written in Ukrainian
Koliada T. A., Prozorov Y. V., Yasenetskyi V. S.
Transformation of Management by Financial Public Corporations in the Context of Post-War Reconstruction of Ukraine’s Economy (p. 244 - 253)
The aim of the article is to deepen and further develop the scientific foundations of transformation of management by financial public corporations in the context of post-war reconstruction of the economy of Ukraine in order to improve the efficiency of the State-controlled corporate governance. The article defines the essence, composition and meaning of financial public corporations in ensuring the post-war reconstruction of the economy of Ukraine; the functions of management of financial public corporations are disclosed; the best practice of localization of global mechanisms for the transformation of the State-owned banks is systematized; the directions of institutional changes of the role of the State in public finance for the post-war reconstruction through a combination of global and local approaches to attracting both the public and the foreign banking capital to Ukraine are substantiated. An assessment of indicators of the level of corruption and the shadow economy in Ukraine was carried out in order to identify tendencies in the changes of their dynamics for the period of 2009–2022. It is emphasized that in the current conditions the positive dynamics of these indicators can accelerate owing to changes in the corporate governance of the system of financial public corporations, primarily concerning the State-owned banks. Based on the analysis of the distribution of domestic government bonds by owners, it is proved that the monetization of the budget deficit forces the government to refinance the public debt, thereby shifting the debt burden to future generations, thus indicating the lack of stability of public finances. At the same time, the government’s active use of external sources of borrowing distorts the structure of public debt, as a result of which currency risks raise and the sensitivity of Ukraine’s economy to external shocks increases. Proposals on the need to adopt a law on corporate governance of the State-owned companies at the level of financial public corporations is substantiated, in accordance with the recommendations on the part of the OECD, in order to ensure transparent and impartial nomination, selection and reappointment of highly qualified professionals for the positions of members of the supervisory boards of such companies and introduce a procedure for the annual evaluation of supervisory boards. Prospect for further research in this direction is to find ways to improve the efficiency of management of financial public corporations, reduce the existing excessive concentration of public banking capital, including in the government borrowing market, in order to achieve a synergistic effect at the stage of post-war reconstruction of Ukraine’s economy. Article is written in Ukrainian
Krasnova I. V., Prymostka L. O., Stepanets V. S., Chepizhko O. V.
Problems of Asset Valuation in the Process of Bank Liquidation (p. 254 - 264)
The aim of the article is to identify problematic issues of valuation of property (assets) of banks that are in the process of liquidation, and substantiate proposals for the desired solution, taking into account the need to protect the rights of bank creditors. Although the bankruptcy of banks causes significant economic and moral losses, the processes of removing insolvent banks from the market, their reorganization or liquidation are constantly taking place. Therefore, regulators and banks that have been declared insolvent face many questions, including the adequate valuation of banking assets and the determination of the liquidation estate. The article discusses approaches to asset valuation and features of their application in Ukrainian practice, as well as peculiarities of the sale of assets of banks in liquidation according to the Dutch auction model. It is noted that the imperfection of management of banks’ assets in the process of their functioning leads to discrepancies in the valuation of these low-quality assets in the liquidation procedure. It is determined that the ratio between the estimated value of assets and their book value for banks declared insolvent is on average 26.2 %, and the median value is 22.3 % This leads to a number of problems, including the inability of the Deposit Guarantee Fund (DGF) to ensure the repayment of part of the bank’s liabilities, which could be repaid in case of timely acceptance of tender offers at market value. It is noted that the most liquid assets, which are real estate and property, occupy an insignificant share in the structure of the liquidation mass – about 5 %, and the conversion rate in the sale of real estate quite often reaches 200 %. It is proposed, in accordance with European practice, to empower the Fund to monitor the assets of banks in the process of their functioning. The expediency of valuating assets not from the position of doing business «as usual» but from the point of view of the objective need to sell assets, focusing on the quick sale of assets at a market price, is emphasized. In order to improve the process of valuating the assets of an insolvent bank and focusing on the quick and transparent sale of the bank’s assets, it is proposed to implement the international experience of using loss-sharing agreements into domestic practice. Article is written in Ukrainian
Krasnokutska N. S., Koray Adiguzel
Blockchain Characteristics and Implications: Assessing the Impact on Sustainability in Turkish Sectors (p. 265 - 270)
Technological advances are accelerating the activation of the saving, preserving and using information in various economic models. Blockchain technology is one of the latest technologies used by many international institutions and organizations. Compared to other banking or technological technologies, it transmits and accumulates information transparently, instantly, and reliably at a low cost. As Turkey plays a significant economic role in the Middle East and Europe regions, this article highlights a sample of Turkish companies that use blockchain technology of the version 4.0. It is an attempt to measure the variables of the coefficient of trust, immutability, transparency, and cost reduction in combination with blockchain applications by scientists, administrative authors, and blockchain technologists. A quantitative descriptive approach has been adopted to examine the interrelation between blockchain applications and increase in transparency, confidence, stability, and cost reduction, based on the SPSS statistical software to produce accurate results. 19 Turkish companies were selected from 62 Turkish companies that have adopted blockchain, according to the official agency «BTCR» that tracks these organizations in Turkey. The selected companies, operating in banking, telecommunications, industry, and non-governmental associations, make large contributions to Turkey’s GDP. The study found that all four variables in the sectors improved significantly after the introduction of blockchain technology, but the systems for monitoring and tracking their influence were complex ones. Article is written in English
Savchenko M. V., Kuzmynskyi Y. D., Yanishevskyi B. S.
The Role of International Lending and the Activities of International Financial Organizations in the World and in Ukraine (p. 271 - 281)
The theoretical and methodological basis of the research is the work of domestic and foreign scientists. The results were obtained due to the application of a system of methods: the method of logical analysis made it possible to develop the logic of the research; generalization and synthesis - to form a chronology of IMF cooperation with the domestic national economy; methods of structural and economic-statistical analysis were used to assess the current state of cooperation between the countries of the world and international financial organizations. The graphic method made it possible to visualize the obtained research results. The article is devoted to a detailed study of the role of international lending and the activities of international financial organizations in the countries of the world and Ukraine. An overview of the existing IMF lending mechanisms was carried out and the dynamics of the lending structure of the world's countries under these mechanisms was studied. It has been proven that the most used lending mechanism is the "Stand-by" loan mechanism (SBA), which is designed to help solve short-term balance of payment problems. An analytical review of the largest IMF borrowers of the geographic structure of the fund's financial support to the countries of the world was carried out. An in-depth analysis of financial flows to low- and middle-income countries in 2018-2022 led to the conclusion that the net inflow of debt for 2018-2022 grew by 9% annually, which increases the dependence of these countries on international financial organizations. Within the framework of Ukraine's cooperation with international financial organizations, the country's interaction with the IMF, the World Bank, and the EBRD was investigated. The authors created a chronology of the development of cooperation between Ukraine and the IMF. The assessment of the current state of cooperation between Ukraine and the IMF confirmed the intensity of these relations recently, both in terms of the number of loans granted and their volume. As a result of almost thirty years of cooperation, Ukraine received loans in the amount of 35 billion dollars. The result of Ukraine's cooperation with another largest creditor - the World Bank - was studied. During 28 years of cooperation, the World Bank offered Ukraine funds totaling more than 7.94 billion dollars. The purpose of granting loans by the World Bank and the EBRD is the sustainable and comprehensive recovery of the economy of Ukraine as a whole, and of certain industries in particular. The issue of cooperation with international financial organizations is especially relevant today in view of the limited financial resources and the gradual entry of our country into the stage of peak payments for foreign debt. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №4-2023
Kopylyuk O. I., Muzychka O. М., Ivanochko S. S., Login V. B.
The Mechanism of Financial Security Management of the Insurance Company (p. 175 - 181)
The aim of the article is to substantiate the mechanism for managing the financial security of an insurance company in the context of endogenous and exogenous risks, threats and hazards. It is proved that the economic essence of the concept of «financial security of the insurer» can be interpreted on the basis of system, system-activity, state, resource, criterion, indicator, risk- and strategically oriented approaches. It is proposed to consider the financial security of the insurer as a complex characteristic of its activities, which reflects the ability to manage finances, accumulate insurance premiums, fulfill obligations in the face of existing risks, threats and hazards of exogenous and endogenous nature. It is proved that ensuring the financial security of the insurer is based on an effective mechanism specific to each insurance company, depends on the purpose, financial and economic activities of the company, the level of its security and forms, methods and levers of its provision. The mechanism for managing the financial security of an insurance company has been improved, which is based on the definition of targets, forms, methods, levers, management tools, regulatory and information support. An approach to improving the mechanism for managing the insurer’s financial security has been developed, which is based on determining the targets of the insurer’s financial security, analyzing and evaluating the dynamics of the main indicators and activity coefficients, the existing methodological instrumentarium for assessing the level of the insurer’s security and substantiating the most acceptable methods, selecting financial security indicators, calculating the indicators of financial security, determining the level of the insurer’s financial security. Prospects for further research are the development of methodical tools and indicators for assessing the level of financial security of the insurer in the context of existential risks, threats and hazards. Article is written in Ukrainian
Petrovskyi O. V.
Development of Consumer Lending in Ukraine: An Analysis Using the Methodology of System Dynamics (p. 182 - 190)
Consumer lending in Ukraine began to develop actively in the early 2000s. During this period, there were several stages of transformation of the lending market, each of them gave rise to certain problems and brought the system to a new level of development. The system-dynamic model, presented in our work, reflects the consumer lending market of Ukraine as an interaction of subsystems and a number of external and internal factors, in which the dynamics of lending is determined by 5 key factors: the policy of the central bank (CB), gross domestic product (GDP), the share of FinTech companies as competitors in the lending market, the yield of government bonds, which are an alternative to granting a loan, as well as the rigidity of risk management. The aim of the article is to apply this model to analyze the consumer lending market in Ukraine at each stage of its development; identification of factors that have a key impact on its dynamics; analysis of specific features of their manifestation on the basis of the built system-dynamic model. For each of the stages, a system-dynamic model was applied and the manifestation of factors and their intensity were outlined. The carried out analysis showed the following features:
• the first stage – rapid GDP growth and high risk appetite of banks causes significant demand and supply for consumer loans;
• the second stage is a change in the rigidity of risk management: from the cessation of lending at the time of the crisis to the active increase of loan portfolios by banks in 2012-2013, which is fully in line with Minsky’s theory. A positive role in this was also played by high interest rates on loans, which increased the interest income of banks;
• the third stage is the emergence of FinTech lenders that take market share from banks, as well as the impact of the NBU discount rate on the demand for loans.
• the fourth stage – a significant increase in lending risks forces banks to tighten risk management and makes investments in government bonds more attractive.
An analysis of the application of the system-dynamic model to genesis allows us to determine certain regularities. The assumptions about the manifestation of factors and their intensity can be used to substantiate scenarios for the development of the system. Article is written in Ukrainian
Titarchuk M. I.
Formation of Tax Policy in the Countries of the European Union (p. 191 - 197)
The aim of the article is to generalize and systematize the provisions on the formation of tax policy in the EU countries. The dynamics of the indicator of the ratio of tax revenues to GDP in 27 EU countries during the period 2013–2022 is studied. It is found that the average value of this indicator for the EU-27 is 37.0%. A rather significant differentiation of the tax burden in the context of European countries is recorded, the lowest value observed in Ireland – 24.0%, and the maximum – in France – 47.4%. In general, a moderate level of tax burden is observed in the sample of Central European and Baltic countries. Using the method of correlation and regression analysis, it is found that for the EU countries in 2013–2022, with an increase in the tax burden by 1 percentage point, the real growth rate of the economy slows down by 0.215 percentage points, and the stochastic dependence is significant, but not too strong. In further research, it is important to pay attention to other factors influencing the growth rate of the real economy. Tax service is a key institution in the field of public revenue mobilization, in the EU-27 countries 62% of the total State revenues are collected by the tax authorities. The article pays attention to the study of the compositional tax structure both in the context of taxation of factors of production and individual taxes. Labor taxes account for the highest share in the tax structure in the EU Member States, followed by consumption taxes, and capital taxes are the least fiscally important. The determinant of the formation of the tax policy of European countries is competition in the international market to attract the main factors of production – labor and capital, which necessitates the creation of favorable conditions for their taxation. In the EU countries, there are unified taxation rules that apply to both minimum tax rates (VAT, excise duty) and control procedures, the principles of production and circulation of excisable goods, etc. In the EU member states, a standard and reduced VAT rate is used, the latter is a fiscal tool for maintaining social stability in society. The priorities of the tax authorities in the EU countries are the improvement of administration procedures, the expansion and modification of digital taxpayer services, the implementation of the institutional model of the State tax risk management and scenario modeling. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №1-2024
Voznyak H. V., Shopska Y. K.
The Priorities and Tools for Strengthening the Financial Security of the Small Business Sector in the Conditions of Instability. (p. 96 - 101)
The article updates the issues of ensuring financial security and stability of the entities of the small business sector in Ukraine in the conditions of critically acute instability caused by the consequences of the ongoing full-scale war. The purpose of the study is to substantiate the priorities and tools for strengthening the financial security of the small business sector of Ukraine in conditions of instability. The goal of the State policy of strengthening the financial security of the small business sector of Ukraine in the conditions of wartime and instability should be the systematic improvement of the business environment of entrepreneurial activity in the context of minimizing financial challenges and threats, improving the financial and resource provision and the financial and economic condition of small business entities, ensuring the development and capitalization of this sector of the economy. New challenges and threats to the financial security of small business entities of Ukraine in the conditions of wartime have been identified, namely, a decrease in the solvent demand of the population, a narrowing of the capacity of domestic demand for consumer goods and services and a reduction in income, an increase in the cost of resources, an increase in the cost price and a decrease in the level of economic profitability, difficulties with logistics and transportation of goods, etc. It has been proven that the achievement of this goal will be facilitated by the implementation of a system of strategic priorities, namely: improving the financial and credit support of small businesses; formation of a system of investment support for development projects of small business entities; expansion of monetary and lending opportunities; de-shadowing of the capital of small business entities and restructuring of their debt obligations; small business effectivization through the growth of the sector of innovative and technologically active entrepreneurship; implementing the potential of the insurance sector in mitigating the financial risks of small business entities. Article is written in Ukrainian
Viadrova I. M., Bitner I. V., Novikova T. V.
Credit Derivatives Pricing Models (p. 102 - 111)
Derivatives play an important role in the processes that take place in the global economy and economic growth. They are critical for hedging risks in the banking sector, managing the interest rate in the activities of pension funds, satisfying insurance claims for insurers and other market participants, i. e. reducing uncertainty arising from fluctuations in prices, credit rates, currency fluctuations, interest rates, etc. Today, they are actively used in the world practice of all industry sectors. The aim of the article is to develop pricing models for credit derivatives, taking into account the relationship between credit derivatives (CD) and structured credit products (SCP), as well as on the basis of identifying differences in the results of credit correlation of defaults, analyzing the evolutionary and essential characteristics of the CD and SCP markets. The authors systematized and classified them; their structural characteristics are provided; the main trends characteristic of the CD and SCP markets in the context of the markets of traditional derivatives are studied; the method of their design with the help of clinical documentation is determined; the major aspects of their modeling and pricing are considered, also an own credit product is designed and the spread is calculated using the pricing model. The article considers the problem of choosing an approach for assessing and calculating the correlation of defaults, which is an integral part of the pricing models of credit derivatives. On the basis of the given methodology for designing the SCP with the help of CD and the key aspects of modeling and pricing of CD and SCP, a basket credit default swap was designed on the basis of three corporate names. The designed product meets all the basic requirements for standard basket products in terms of content. The calculations were made based on the use of two different copulas to assess the correlation of defaults. The results can be used to design and evaluate a derivative on the correlation risk of issuers. Article is written in Ukrainian
Zakhozhay K. V., Rudyk N. V., Syvulska N. M.
Customs Regulation in Ukraine in the Prewar and in the Wartime Periods (p. 112 - 120)
The purpose of the study is to theoretically substantiate customs regulation, identify shortcomings in its functioning in the prewar and wartime periods, develop appropriate practical recommendations, search for alternatives to meet the demand for imported goods and services, as well as restore the customs and financial security of the country with the condition of ensuring global partnership in terms of implementing the seventeenth Sustainable Development Goal «Partnership for Sustainable Development». It is determined that customs regulation is a subsystem of the State regulation of foreign economic activity, which defines and controls the process of movement of goods and services across the customs border. An analysis of current trends, dynamics of customs security and its components in the plane of effective customs regulation and ensuring the customs interests of the country is carried out. The key indicators that determine the level of customs burden on the country’s economy have been calculated and analyzed. There is a negative trend in such indicators as: provision of customs payments to the revenues of the State budget of the country, provision of customs payments of tax revenues, fulfillment of planned indicators for customs payments. The significance of customs payments in the revenues and tax revenues of the State budget is irrefutable. A comparative analysis of the both prewar and wartime structure of customs payments is carried out. The dynamics of the volume of taxed imports and the tax burden on them in Ukraine during 2018–2023 are studied. The key trends of the studied indicators are declining. The largest decline is observed during the pandemic in 2020 and at the beginning of the ongoing war in 2022. The partnership relations between the State and business entities in the context of the issue of customs regulation through the introduction of a system of preferential taxation of imports during the wartime period are studied. A systematization of normative legal acts of 2022, which fixed preferential conditions for business entities, is carried out. The problems of customs regulation of the prewar period, which significantly affected its efficiency and functional capacity in the wartime period, are identified. Measures for further leveling of these problems with the aim of European integration are proposed. Article is written in Ukrainian
Sidelnykova L. P.
Monetary Impacts on the Labor Market in Conditions of Uncertainty (p. 121 - 127)
The aim of the article is to study the features of the impact of monetary policy on the domestic labor market during the wartime. The main trends in the labor market of Ukraine both before the full-scale invasion of the russian federation and under martial law are determined. The indicators of official statistics on the number of unemployed are studied, assumptions about the real level of this indicator are made, and short-term trends in the revival of registration of persons in the employment center as unemployed or job seekers are predicted. The impact of the bank rate policy pursued by the central bank on employment of the population has been proved. It is determined that the overall impact of changes in the bank rate in the country depends on the ratio between small and large enterprises, as well as on the share of employees with high and low levels of education. Reserve requirements for banking institutions are mentioned as a monetary instrument for influencing the labor market. It is emphasized that one of the main obstacles to doing business in wartime is the lack of working capital. It is calculated that in the structure of loans granted by the banks of Ukraine, the dominant value (more than 70%) belongs to economic entities. Considerable attention is paid to business lending (including within the framework of the state program «Affordable Loans at 5-7-9%») as a prerequisite for the creation of new jobs. The problems of growth in the volume of non-performing loans during the wartime are considered. The catastrophic position of Ukraine in the ranking of countries by the level of NPLs in the total volume of loans issued, compiled according to the World Bank data, is underlined. The trends in the level of NPLs in Ukraine before the full-scale invasion and the reasons for the growth in the volume of non-performing loans in 2022–2023 are analyzed. It is proved that the high cost of credit resources limits the availability of working capital in business and forces it to optimize wage costs, which leads to a decrease in the level of remuneration and reduction of jobs. It is substantiated that the monetary aspects of the influence on the preservation of the labor potential of the nation acquire special importance during the war. Article is written in Ukrainian
Soltysiak R. Y.
Factors of Influence on the Capital Structure of Non-Financial Corporations in Ukraine (p. 128 - 137)
The purpose of this study is to determine the factors that explain the capital structure of Ukrainian non-financial corporations. The study was carried out on a sample of 8525 Ukrainian large and medium-sized enterprises on the time horizon of 2014-2019, covering one economic cycle. Banks and non-bank financial institutions are excluded from the sample of enterprises, since the structure of their assets differs from that of commercial companies. To determine the impact of fundamental factors, the capital structure of companies is represented separately by three indicators: i) the level of current debt, ii) the level of long-term debt, and iii) the level of debt in general in the structure of liabilities of enterprises. The list of indicators that explain the capital structure of Ukrainian companies includes fundamental indicators – profitability, company size, asset structure, current liquidity, growth; and macroeconomic variables: GDP growth and consumer price index. The results of the study confirm that the conception of sequential actions best explains the principle by which Ukrainian companies form the structure of liabilities. According to the results of the modeling, the company’s factors demonstrate statistical significance, but do not explain the variation in the level of debt in terms of types of economic activity. Only the factors of profitability, asset structure and type of economic activity are statistically significant for all types of models. The sign of the influence of factors that determine the capital structure of Ukrainian companies corresponds to the results of studies of both developed countries and transition economies. Also, the impact of factors on the level of indebtedness of enterprises differs significantly depending on the maturity of obligations. This study can be further developed by updating the calculations and data that include the period of recent crises. This will allow us to check whether companies have changed their approaches to choosing a capital structure during the wartime. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №2-2024
Kaneva T. V., Kryvonos D. A.
The Methodological Bases for the Development of the Country’s Tax Policy (p. 240 - 246)
The article is devoted to the problems of determining the methodological bases for the development of the country’s tax policy. The institutional powers of the main regulators of tax policy are defined. These regulators, when interacting, must comply with the criteria of Nash equilibrium in order to ensure sustainable socioeconomic development. The principles of formation and implementation of tax policy are characterized, in particular, fiscal sufficiency, social justice, efficiency, effectiveness, stability, adaptability and neutrality in relation to the level of competitiveness of the payer. A two-stage algorithm for determining the efficiency and effectiveness of tax policy has been proposed. The specifics of planning and forecasting activities in the system of tax regulation of socioeconomic development are disclosed, the need for permanent improvement of the methodology of medium-term planning of tax revenues and introduction of scenario modeling is substantiated. The need to assess the financial solvency of taxpayers in order to build realistic forecasts and plans is emphasized. The reasons for the occurrence of transaction costs associated with the administration of taxes are disclosed, a methodical approach to their distribution into ex ante and ex post expenses is substantiated. The features of the formation of tax policy under the conditions of further implementation of the reform of fiscal decentralization and taking into account Samuelson’s «randomness theorem» are determined. The need to find optimal parameters for the distribution of revenues from the payment of national taxes between the State and local budgets is emphasized. The role of the information component in the environment of development and implementation of tax policy is defined. The basic characteristics of the architecture of effective tax administration are determined. Promising directions of digitalization of tax administration have been identified, taking into account the peculiarities of the architectonics of fiscal space. Article is written in Ukrainian
Koliada T. A., Prozorov Y. V.
The Latest Digital Financial Instruments: Essence and Prospects of Use in the Reconstruction of the Affected Territorial Communities of Ukraine (p. 247 - 253)
The aim of the article is to reveal the essence and determine the prospects for attracting additional revenues to local budgets in the context of the development of creative industries and the use of the latest digital financial instruments for the reconstruction of the affected territorial communities of Ukraine in the post-war period. The article identifies the main creative forces of digital transformation of the economy, discloses the institutional essence of digital financial instruments, assesses the sources and preferential mechanisms for attracting financial resources for the reconstruction of the affected territorial communities in the post-war period, substantiates the role of local governments in the development of creative economy industries using the latest digital financial instruments. Based on the analysis of the impact of changes in the institutional structure of the space-time of the banking metaverse on the possibilities of financial support for the affected territorial communities, it is proved that the transformation of the metaverse is taking place from the quantitative growth of entertainment and distracting gaming technologies to qualitatively new creative socioeconomic dimensions, which are considered as a virtual integrated system associated with real life. It is proved that due to the combination of the properties of digital and financial instruments, the formation of the latest digital financial instruments takes place, which combine the characteristics of the previous ones, while being more effective in terms of the possibilities of their use, accessibility to the general public and profitability in the long run. Some forecast scenarios for the growth of the metaverse economy for the period up to 2032 have been developed. An estimate of the proportion and volume of the metaverse in the digital economy and global GDP for each of the scenarios is provided. It is emphasized that in modern conditions, the development of creative industries using the latest digital financial instruments is the most investment-attractive segment of investing assets in the medium and long term. Proposals on the need to apply stimulating norms of the current legislation to encourage representatives of local and foreign creative businesses to implement the latest digital solutions at the regional level in order to provide territorial communities with unique instant services for managing online funds of local budgets in hybrid space-time are substantiated. Prospect for further research in this direction is to update the normative framework for AI regulation in order to achieve a synergistic effect of innovation and singularity at the stage of reconstruction of the affected territorial communities of Ukraine in the post-war period. Article is written in Ukrainian
Kochorba V. Y.
Model of Interaction of Structural Elements of the Financial Market of Ukraine (p. 254 - 263)
The aim of the article is to improve the methodology of studying the financial market of Ukraine, analyzing the interaction between the components of the financial market, studying the reaction of the components of the financial market to sudden changes and forecasting the behavior of the structural elements of the financial market. The financial market plays a decisive role in the modern market economy of Ukraine, providing a mechanism for the redistribution of capital between creditors and investors through intermediaries based on the principles of supply and demand. The development of the financial market and the interaction of its components is the subject of research by many scholars, whose works laid the foundation for a modern understanding of how financial markets function and how they affect the economy as a whole. Despite a significant number of studies on the functioning and development of financial market infrastructure, many aspects of the interaction of market entities in Ukraine remain unexplored, especially in changing external and internal conditions. To model the interaction of market participants in the financial market of Ukraine, an algorithm has been developed, on the basis of which the interaction of structural elements of the financial market of Ukraine has been analyzed, the reaction of the components of the financial market to sharp changes has been studied, and forecasts of the behavior of its structural elements have been made. The study uses a combination of fundamental conceptions of the financial market and the methodology of expert evaluation to determine the most significant statistical indicators that characterize its constituent components. The cause-and-effect relationships between these components are analyzed, the nature of their mutual relationship is revealed. ARIMA models were used to forecast key indicators of the financial market. On the basis of vector auto-regressive models, the dynamic adaptation of market components to shocks is analyzed. The study showed that the credit and interbank markets show less susceptibility to external factors and can even serve as impetus for changes in other structural elements of the financial market. The results of the study can be used for: development of a more effective policy of financial market regulation; development of new methods and tools of influence on the functioning of financial market entities. Article is written in Ukrainian
THE PROBLEMS OF ECONOMY №3-2024
Petrukha S. V., Tripak M. M., Petrukha N. M., Konovalenko D. V.
Modernization of Public Finances and Resilience of Veteran Business (p. 249 - 260)
The issues of modernizing public finances to support veteran business in the context of the Russian-Ukrainian war and the socioeconomic instability in its wake are relevant and consistent with the philosophy of the Ukrainian Peace Formula that is widely discussed by the President of Ukraine with stakeholders, e. g. at the Global Peace Summit. The adjustment and approximation of public finances to the real needs of veterans’ businesses is determined by its significant importance in economic recovery after the Russian-Ukrainian war, creating new jobs, promoting the financial autonomy of local governments and increasing social stability in general and the veteran community in particular. Admittedly, running a veteran business in wartime is highly crisis-prone, requiring the use of an unorthodox set of anti-crisis tools embodied in the State support (in all manifestation forms), setting public finances to the forefront in ensuring the sustainability of veteran business and its sustainable progress in the period of post-war recovery. The aim of the study is to systematize the problems faced by veteran business in the context of the Russian-Ukrainian war, as well as to develop recommendations for the modernization of public finances to ensure its resilience. The authors focus on the need to create new financial instruments that will take into account war risks, in particular considering veterans’ access to preferential lending, grant programs to support their businesses, also the introduction of tax benefits, taking into account the requirements contained in the National Revenue Strategy until 2030. Special attention is paid to the digitalization of veteran business and the development of psychological support programs for veterans as one of the key approaches in ensuring the resilience of veteran business. Due to this resilience, veterans’ businesses resist economic uncertainty, destruction of infrastructure (particularly in the energy sector), a decrease in the domestic purchasing power of the population, limited access to financial resources. In order to develop the level of resilience of veteran business, the need to create innovative financial instruments, including government guarantees for loans and business risk insurance, has been proposed and substantiated. The results of the study also highlight the importance of government support for further progress in the digitalization of veteran business through grant funding and specialized training programs. Thus, the modernization of public finances is a prerequisite for ensuring additional resilience of veteran business both during the war and in the process of post-war reconstruction. The authors offer specific recommendations for the modernization of public finances, which include the integration of new support mechanisms adapted to the specifics of veteran business in the face of economic uncertainty and the Russian-Ukrainian war. Article is written in English
Sloboda L. Y., Dunas N. V., Mysko N. V.
Features of Green Banking Development in Sustainable Economy for Ukraine’s Reconstruction (p. 261 - 275)
The article substantiates the necessity to mobilize internal investment resources by channeling bank capital into the restoration of green financing and the development of sustainable green projects in Ukraine. The characteristics of financial instruments that contribute to the development of the green economy and can be implemented in green banking models are disclosed. Based on the analysis of the historical retrospective of the formation and activity of international organizations in the field of green financing, the perspective directions of the regulation of green banking in Ukraine are outlined, in particular, an assessment of the monetary and financial policy of the central banks of the leading countries of the world with regard to its impact on green investment is carried out. Further, an assessment of the current state of implementation of green financing projects by leading banks of Ukraine is carried out, which made it possible to determine the level of their orientation to the regulation of ESG risks and to identify the prospects of mobilizing private capital to invest in the green national growth. Taking into account the characteristics of the indicators of social and environmental corporate responsibility of Ukrainian banking, recommendations have been developed on the activation of banks' participation in green banking projects. This article can help regulators related to the achievement of ESG projects by using the sharing economy and green energy financing. Article is written in English
Kholiavko N. I., Kononenko S. O., Bondarenko A. A.
The Role of Artificial Intelligence Technology for Prudential Supervision of Credit Institutions (p. 276 - 282)
The aim of the article is to define the role of artificial intelligence technologies for the implementation of prudential supervision and the features of its implementation in the context of external shocks. To achieve the aim of the article, the following tasks are solved: to determine the essence of artificial intelligence on the basis of systematization of scientific approaches to its interpretation; consider the principle of operation of this digital technology; specify the stages of the evolution of artificial intelligence; determine the potential impact of the use of this technology on the prudential supervision of credit institutions; to outline the main features of the implementation of such supervision in the context of external shocks. The article considers the essence and features of the digital economy, which covers all spheres of public life and significantly affects the activities of credit institutions. Digitalization of the economy involves the active use of digital technologies in production, consumption, exchange and management, which stimulates the adaptation of traditional sectors of the economy, including the financial sector. The digital economy places new demands on credit institutions and regulators, which must adapt to the fast-paced conditions of digital transformation, while maintaining the stability of the financial system and protecting the interests of consumers. The digitalization of credit institutions provides them with significant benefits, including increased efficiency of operational processes, improved customer service, the ability to analyze big data, and make accurate decisions. The development of innovative products and services becomes an important component, allowing to remain competitive in the market. There is also a need for regulators to adapt approaches to prudential supervision by integrating digital tools such as artificial intelligence, machine learning, and big data analysis to improve efficiency of monitoring of financial activities. The article focuses on risk-oriented approaches to prudential supervision, which are based on data analysis and risk forecasting, as well as the need for international cooperation to harmonize regulatory standards. The growth of cyber threats is causing increased requirements for cybersecurity and data protection. The results of the study highlight the importance of the proactive role of regulators in maintaining the stability of the financial system in the face of external shocks. Article is written in Ukrainian
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