Еволюційний розвиток фінансової системи України

The paper presents the most promising way of restructuring the financial system in Ukraine, in particular a single regulator (megaregulator), thus allowing to avoid contradictions in the system of state regulation and control in the financial sphere and create a stable basis for the successful integration of Ukraine into the global financial system. The main purpose of state financial agencies is stabilizing the financial system, taking into account the positives and drawbacks of state regulation in the financial sector. Reforms for regulation and supervision in the financial market of Ukraine should be implemented in four main areas: ­ unifying the rules and regulations of state regulation in the financial market with the gradual concentration of regulatory functions in a single state body; ­ separating supervisory functions from regulatory and implementing the system of prudential supervision in all major segments of the financial market; ­ increasing the role of self-regulatory organizations of professional participants and establishing their closer connection with regulatory bodies; ­ significant improvement in financing state regulators, including from market sources . The need to concentrate efforts on developing the mechanisms of the state influence on financial stability, system analysis and implementing measures to prevent systemic risks, ensuring effective management of the financial system liquidity, modernizing and improving the transparency of financial legislation and implementing existing legislative norms by all subjects of financial relations is noted.

It is determined that the formation of the financial system of Ukraine took place simultaneously with the development of its statehood. The components of the financial and credit system, which in total are two subsystems: financial and credit, are analyzed. Each of these subsystems is divided into spheres, and those in turn — on the links, subdivisions, etc. Although each element of the financial and credit system has its own organization, mechanism and functioning, they are all closely interconnected and have a great influence on the development of the national economy. It is noted that the banking system in Ukraine is under construction. It is built on the western type. Today in most countries of the world there is a two-tier banking system. In such a system, relations between banks are formed in two planes: vertically and horizontally.As the analysis shows, the market mechanism is not omnipotent. According to the goals of a democratic society, the market can not provide a noble redistribution of profits. In a crisis situation, the market has little effect on the stabilization of the economy and the effective functioning of the credit and financial system. Certain investment funds, insurance companies and credit and financial institutions are engaged in activities that are unusual for them, harming the public: attracting contributions from the population that perform the functions of savings and commercial banks on the principle of a pyramid, thus causing a wave of bankruptcies. It is substantiated that the public purpose of the financial and credit system characterizes the functions and gives a clear idea of its role, that is, the "work" that this system performs in society. The functions of the financial and credit system are an objective and dynamic phenomenon. Each of them is formed and developed with the development of financial and credit relations and the economic environment in which this system operates. It was concluded that financial and credit relations are one of the most important categories of a market economy, which reflects the real relations and interconnections of economic entities in the economic life of society. The financial and credit interaction of banks and enterprises has always been and remains an important lever for stimulating the development of production and reflects the economic relationship with the reverse movement of borrowed value.

Financial stability is a crucial indicator of the financial sector's health, reflecting the system's resilience or vulnerability to crises. This study investigates the impact of macroeconomic variables and financial inclusion on financial stability in Indonesia, utilizing quarterly data from the first quarter of 2012 to the fourth quarter of 2021. Employing the Vector Error Correction Model (VECM), the research examines the influences of these factors in both the short and long term. The findings reveal that macroeconomic variables and financial inclusion significantly affect financial stability in Indonesia across both time frames. Specifically, inflation emerges as a critical factor influencing financial stability in the long term, while interest rates play a pivotal role in the short term. Moreover, financial inclusion, represented by the public's use of banking products and third-party funds relative to Gross Domestic Product (GDP), impacts financial stability both in the long and short term. Conversely, financial inclusion, measured by credit to GDP, exhibits only short-term effects on financial stability. The results underscore the importance of careful consideration by the central bank when formulating monetary policy, particularly regarding interest rate adjustments, due to their immediate impact on financial system stability. Over the long term, maintaining control over inflation rates is imperative to safeguard financial stability. Furthermore, financial institutions, in their role of fostering financial inclusion by distributing credit, must balance the quality of credit with its quantity to avoid negative impacts on the financial system's stability. This study contributes valuable insights for policymakers and financial institutions aiming to bolster Indonesia's financial stability through prudent macroeconomic management and the strategic implementation of financial inclusion initiatives.

The authors study how the financing patterns of agricultural enterprises have changed under the influence of the financial system crisis in Ukraine and the United States (US, USA). The indicators of financing patterns, which are traditionally employed in financial management, were used. However, the main financial indicator which is the financial leverage indicator provides distorted results because agricultural lands are not objects of sale in Ukraine, therefore, they are not considered as assets and are not reflected in the balance sheet of enterprises at fair value. The agricultural lands, which are leased by the agricultural enterprises, were evaluated and the financial leverage indicator was recalculated. After the recalculation, the financial leverage indicator was reduced from 1.081 to 0.128 in 2017 (the latest data available by the beginning of 2020 has been applied). The obtained adjusted value of the financial leverage indicator in Ukraine was even lower than the actual value of 0.149 in the USA in 2017. In addition, the integral indicator of debt capital quality was built to characterize the debt capital of the agricultural enterprises. The analysis showed that the financial system crisis in Ukraine influenced negatively on the financing patterns of the agricultural enterprises. Ukraine lagged far behind in terms of key indicators of the financing patterns of the agricultural enterprises compared with the USA. The study showed the significant statistical relationship between the integral indicator of debt capital quality of the agricultural enterprises and the integral indicator of the banking sector component of the financial system in Ukraine, which allowed building the reliable regression model. It means that the financial crisis influences negatively on the quality of debt capital of the agricultural enterprises. One of the main reasons for improper compensation of the negative effects of the financial system crisis on the agricultural enterprises is the absence of a specialized financial system for agriculture in Ukraine (contrary to the USA), which needs to be confirmed in the course of further research.

The purpose of the article is to study the theoretical and applied aspects of identifying the problems of normative and legal regulation of the process of applying blockchain technology in the financial system of Ukraine. The results of the conducted research allow us to assert that blockchain technology is a qualitatively new tool for carrying out financial transactions and strengthening the financial system of Ukraine, the essence of which is the creation of a decentralized database consisting of blockchains capable of preventing deliberate actions, the subject of which is data falsification and their chronological records for the purpose of tracking and controlling transactions. The important role of blockchain technology in the financial system of Ukraine has been established, which is manifested in the modernization of the processes of moving funds, making cross-border payments, and the functioning of cryptocurrency. The excessive weakness of the legislative and normative and legal regulation of the process of applying blockchain technology in the financial system of Ukraine was revealed, which is situational and fragmentary in nature and cannot fully regulate the organizational and legal mechanisms of its effective application in the implementation of financial transactions. Detailed studies made it possible to substantiate the need for the formation of a national system of normative and legal regulation of the process of applying blockchain technology in the financial system of Ukraine, as a number of its problems were identified, in particular, the low level of the country's provision of digital technologies and the absence of high-speed Internet, as well as the high cost of using technologies and energy for maintenance of financial transactions in the blockchain system. On the basis of comparative studies of the USA, Great Britain and Ukraine, it has been proved that the development of blockchain technology is significantly dependent on the level of socio-economic development of the country and its ability to regulate problematic aspects arising under the influence of modern challenges and dangers at the legislative level. The need to adopt the Law of Ukraine "On Virtual Assets" is proposed, which will partially solve the most acute problems by unifying norms and creating an organizational and legal mechanism for regulating the process of applying blockchain technology in the financial system.

Fintech facilitates financial inclusion by introducing new sustainable and accessible business models in developing countries. Open banking API technology is used by various fintech businesses in both developing and developed countries, with varying effects on financial markets. It changes the financial market distribution structure by separating financial product manufacturing and distribution and intensifying competition between traditional financial institutions and fintech companies. Fintech companies innovate by using this tool to create new business models. In December 2019, Korea established a standardized “open banking API platform”, sharing an interbank payment network with fintech companies. It has since shown explosive growth, surpassing the trading volume of the UK, the country that introduced open banking APIs for the first time. This study analyzes new business models fintech companies created using this API technology. Based on existing literature, statistics from the platform operator (the Korea Financial Telecommunications and Clearings Institute), and investigations of 30 Korean fintech mobile applications, this study analyzes new fintech business models that provide financial services using this platform. These companies create sustainable business models by combining multiple APIs. Four representative business models (simple funds transfer, simple payment, cross-border remittance, and asset management) are analyzed to reveal how fintech companies create business models with open APIs.

The solid financial system in Ukraine is impossible without effective and effective tax control, which should ensure not only the financial interests of the state (filling the revenue part of the budget), but also to comply with the rights of taxpayers. From compliance with the requirements of the current legislation, such as the timeliness of accrual and payment of taxes and fees, the legalization of income depends on the value of tax revenues. Evasion of payment, incomplete payment, violation of taxpayers and fees, a large size of the shadow economy leads to the non-fulfillment of the revenue part of the budget, and therefore, before the implementation of state target programs, reducing the costs of social needs. The article deals with the essence, content and tasks of tax control. Declaimed elements of tax control, calculating and paying personal income tax. An obstacle to the prevention of tax offenses becomes tax control. The effectiveness of control and test measures depends on the effectiveness of tax control. Along with these fiscal authorities, they must not only control and attract taxpayers who are taxable, but also contribute to increasing overall financial and economic stability in the state. Consequently, the issue of tax control and determination of inefficient actions in the process of its implementation by fiscal control bodies are currently up to date. The stages of tax audits are analyzed, calculating and paying personal income tax, as well as responsibilities and penalties in detecting violations. To date, timely and in the proper volume of payments to budgets are extremely important, because it allows to provide funding to its functions and support its proper functioning. The bulk of mandatory payments are tax revenues that cope with payers in the form of certain taxes. A significant number of payers want to avoid paying taxes, or seeks to undergo their tax liabilities. Therefore, tax control is extremely important, which allows not only to provide payment, but also to detect violations and prevent him. In general, tax control provides the opportunity to accelerate payers, obtaining the necessary information and to control the fulfillment of tax duty.

The credit scoring remains always concerned about developing an empirical model to support the financial decision-making process for financial institutions in the most efficient manner. Currently, the use of technology for credit score is not universally adopted by financial institutions because there is lack of evidence to ensure the effectiveness of this alternate method. Thus, the aim of this research is to recognize the impact or effect on the financial institutions which they have experienced post integrating AI in their institution for generating credit scores for the lending process. The data was collected from 68 Credit Officers/Credit Managers working in Financial Services Provider companies. The semi structured questionnaire was used to understand the use of AI and the perception of Credit Managers towards using AI in the lending process. The primary and secondary data were analysed to evaluate the impact of using AI in calculating Credit score. The research suggested that the financial institutions consider time saving with lesser workforce, Increase in Revenues and Business, Default rate reduction and Skill upgrade along with not breaching privacy of their customers. The FinTech companies can understand the factors in a better manner to develop their products for the financial services providers. And the financial institutions can make a better use of AI to reach out to more prospective customers and provide better.

FinTech field began to develop rapidly since 2008, after the Global Financial Crisis. This was due to the fact that financial institutions could not quickly respond to consumer needs because of a number of regulatory and legislative restrictions that were implemented to overcome the consequences of the crisis. At the same time the main factors of FinTech development were technological evolution, emerging customer expectations, availability of funding and capital, and support from governments and regulatory authorities. FinTech makes traditional financial services more affordable, flexible and secure, and therefore FinTech is one of the main drivers of digital transformation of the whole financial sector and the development of financial accessibility in the world. The development of the FinTech industry has a huge influence on the financial sector. FinTech strives to make financial services more accessible for both consumers and businesses. FinTech companies are fast growing and attract a large amount of investment each year in their development. At the same time, traditional financial institutions feel threatened on their part, because with the increasing number of FinTech companies, competition in the financial services market is growing too. In order to stay on the market, traditional banks are forced to adapt to modern realities and develop cooperation with FinTech companies. FinTech companies can help banks provide financial products and services more effectively and strengthen their competitive advantages. For example, they can improve financial inclusion, enhance customer experience, increase transparency, improve security, and provide support and guidance. Thus, financial institutions in cooperation with FinTech companies are able to provide new financial products and services to groups of customers who previously did not have access to traditional financial services. In addition, thanks to new technologies, financial institutions can offer personalized services and communicate online with customers, which significantly increases their engagement and experience. Furthermore, FinTech companies can help financial institutions detect fraud and deal with cyber-attacks and other online risks. Keywords: FinTech, financial technologies, financial services, financial innovations, FinTech adoption.

This study aims to analyze the correlation between financial stability, oil price shocks, and business cycle uncertainty in the economies of the Association of Southeast Asian Nations (ASEAN) amidst the COVID-19 pandemic. This study examines the interplay and effects of various factors on the economic resilience of the ASEAN region, utilizing data from ten-member countries spanning the years 2002 to 2022. The results underscore the notable impact of oil price shocks on financial systems' stability, suggesting that oil price variations have the potential to disrupt financial markets, particularly in the context of the ongoing pandemic. Moreover, the research illustrates that the presence of business cycle uncertainty amplifies the negative consequences of oil price shocks, thereby heightening their influence on the financial system's stability. The study also uncovers a robust correlation between the COVID-19 pandemic and heightened levels of business cycle uncertainty within the ASEAN economies. The ongoing global pandemic has increased market volatility, a deceleration in economic growth, and disruptions in supply chains, generating a heightened sense of uncertainty within the business landscape. As a result, the heightened level of uncertainty has impeded the efficacy of monetary and fiscal policies in preserving financial stability.

One of the major reasons explaining the inefficiency and underdevelopment of Iran’s financial system—as well as its limited effectiveness in influencing macroeconomic variables in recent decades—may lie in the type of financial regulatory system in place. This issue has received little attention from researchers and policymakers in Iran, even though many countries have shifted their financial regulatory systems from traditional frameworks to more modern approaches such as the Twin Peaks model. Accordingly, this study seeks to explore Iran’s current situation by drawing on the experiences of successful countries and aims to answer the key question: What type of financial regulatory system should Iran adopt? In other words, which regulatory approach is best suited to enhance the effectiveness of Iran’s financial system? Findings from a covariance analysis conducted on 23 countries over the period from 1981 to 2020 indicate that changes in the financial regulatory authority’s approach (traditional, functional, integrated, and Twin Peaks) interacting with macro-financial characteristics (financial structure, interest rate repression, and generalized public trust) have, in most cases, led to changes in the performance of both the real sector (economic growth and inflation) and the financial sector (financial development and financial efficiency). The statistical results revealed the suboptimality of traditional and functional models, and confirmed the superiority of transitioning first to an integrated financial regulatory system, followed by the adoption of the Twin Peaks model. Due to the complexity of such systemic changes, it is recommended that an integrated financial regulatory system be implemented on a trial basis for a limited number of years before transitioning to the Twin Peaks model. From a broader perspective, it appears that Iran's economy is in need of a complete redesign of its socio-economic architecture.

The financial crisis has generated fundamental reforms in the financial regulatory system in the U.S. and internationally. Much of this reform was in direct response to the weaknesses revealed in the precrisis system. The new ?macroprudential? approach to financial regulations focuses on risks arising in financial markets broadly, as well as the potential impact on the financial system that may arise from financial distress at systemically important financial institutions. Systemic risk is the key factor in financial stability, but our current understanding of systemic risk is rather limited. While the goal of using regulation to maintain financial stability is clear, it is not obvious how to design an effective regulatory framework that achieves the financial stability objective while also promoting financial innovations. This paper discusses academic research and expert opinions on this vital subject of financial stability and regulatory reforms. Specifically, among other issues, it discusses the impact of increasing public disclosure of supervisory information, the effectiveness of bank stress testing as a tool to enhance financial stability, whether the financial crisis was caused by too big to fail (TBTF), and whether the Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA) resolution regime would be effective in achieving financial stability and ending TBTF.

This study was carried out with the general objective of evaluating the business policies and strategies employed by fintech companies in Rwanda in ordered to gain and sustain a competitive advantage in the market. The study was guided by three objectives that include: To find out the current business policies and regulatory frameworks affecting the competitive positioning of the fintech companies in Rwanda; To examine the strategies fintech companies in Rwanda are employing to differentiate themselves and achieve sustainable competitive advantage in the market; and To assess the challenges and opportunities fintech companies face in implementing these strategies, and provide recommendations for improving their competitive edge in Rwanda’s fintech sector. The study was guided by two theories (Competitive Advantage Theory and Resource-Based View). The research design that was adopted for this study was a descriptive research design. In relation to the target population, only those employees involved in key decision-making process in the fintech companies were the only ones who were considered adding to 150 employees picked from the departments (operations, marketing, and compliance). A questionnaire that was structured and rated in a likert scale was used as the instrument of collecting data. The multiple regression analysis did show that, Current Business Policies and Regulatory Frameworks (β = 0.276, p < 0.01) had a positive and significant effect on competitive advantage. Also, Strategies for Differentiation (β = 0.426, p < 0.01) had the strongest positive influence on competitive advantage. Finally, Challenges and Opportunities (β = 0.355, p < 0.01) also had a significant positive effect on competitive advantage. The study has a conclusion that business policies and regulatory frameworks in Rwanda, have an impact that is positive on the fintech firms’ competitiveness. Differentiation strategies that have centered on digital transformation and innovation are the most influences of sustainable competitive advantage of fintech firms. The study also concludes that despite the fact that there are challenges that befall the fintech firms like the shortage of funding and stiff competition from the traditional financial institutions, they can leverage opportunities like high mobile penetration and government support to strengthen their market position. The study underscores the importance of aligning regulatory policies with fintech innovation and providing fintech firms with the resources needed to implement their growth strategies effectively.

The objective of this research is to develop a financial system stability index and analyze the internal and external factors that we expect to affect the stability of the Indonesian financial system. We measured the single model of financial system stability index (FSSI) from year 2004M03 to2014M09 in Indonesia, and compiled a single quantitative measure based on aggregate internal factors and external factors to capture and predict the shocks of the financial system stability. Stability parameters were composed of composite indicators on different bases. In addition, we developed a comprehensive index component associated with the relevant market conditions, including banking soundness index, financial vulnerability index, and regional economic climate index. Results stated that US economic growth and economic growth of ASEAN countries positively affected financial stability. In addition, current account, exchange rate, inflation, interest rate were shown to negatively affect financial stability. The results of this study imply that internal factors have a strong influence on the financial stability. Therefore, the central bank should give a fast and correct response to the changes of external and internal financial environment, especially for internal factors through monetary policy.

In recent years, policy-makers and banking supervisory authorities reinforced their efforts aimed at ensuring financial stability, considering it as a relevant policy objective, autonomous with respect to both monetary and microeconomic stability (see Schinasi, 2003). Many central banks regularly publish reports in which they disclose their assessment of the factors that may threaten financial stability. Ad hoc fora have been established in order to discuss the implications for financial stability of globalisation, financial innovation and macroeconomic fluctuations. Major financial institutions also devote a large part of their activity to the analysis of the vulnerabilities of financial systems.