The Financial Architecture of the National Economy: Configuration and Structural Components

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

Weighted Coefficient Model for Bank Investment Portfolio Optimization

The article investigates conceptual positions of providing financial flexibility of decision making in the bank’s investment activity. It emphasizes the use of the mechanism, which includes the choice of investment strategy on the basis of institutional flexibility of decision-making; optimization of bank investment portfolio taking into account market flexibility; evaluation and regulation of managerial flexibility of decision making

FINANCIAL ARCHITECTURE AS THE BASE OF THE FINANCIAL SAFETY OF THE ENTERPRISE

In today’s economic realities, achieving the necessary level of financial security of enterprises is a prerequisite for ensuring their sustainable operation and the formation of competitive development parameters in the internal and external market environment. The effectiveness of this process depends on building a high-quality financial architecture as the basic structural element of the company’s financial security system. In this regard, the subject of the study is an analysis of existing theoretical approaches to the definition of financial architecture and its relationship with the financial security of the enterprise. The methodological basis of the research is the scientific development of domestic and foreign scientists, the fundamental theoretical positions of economic science in the field of financial architecture formation, financial risk management, and financial security of the enterprise. The purpose of the article is to study the essence of financial architecture in order to substantiate its determining influence on the financial security of the enterprise and ensure its sustainable functioning in an unstable development of economic processes. The article analyses the theoretical aspects of financial architecture and finds that the interpretation of this economic category is due to the existence of clear causal relationships between its constituent elements and their impact on the financial support. Proceeding from this, the definition of financial architecture is drawn as a set of interconnected structural elements such as capital structure, ownership structure and quality of corporate governance, which accumulate and mobilize financial resources, increase control over the activity of the enterprise, solve conflicts of interest between owners and other stakeholders. It is determined that the choice of principles and methods for constructing financial architecture depends on such financial interests of economic entities as forming a flexible financial potential, optimizing the structure of capital, increasing investment attractiveness, maximizing profits, and increasing the market value of the enterprise. It is proved that the result of building a flexible financial architecture is to provide the appropriate level of financial security of an enterprise by identifying, quantifying, neutralizing, minimizing, and monitoring its financial risks. It is proposed to systematize indicators of financial security level assessment on the most typical of its functional components, among which investment, credit, emission, innovation, and currency can be distinguished. It has been established that ensuring the appropriate level of financial security will contribute to achieving financial sustainability, forming qualitative financial potential, providing competitive advantages, harmonizing interests of economic entities, and creating an effective system of economic security of the enterprise. It is concluded that the construction of high-quality financial architecture is the basis of financial security of an enterprise, the level of which depends on the proper management of financial risks and ensuring an adequate level of safety of all its functional components. As a criterion for the effectiveness of the process of ensuring the financial security of the company, sustainable development of the enterprise was determined in the conditions of an unstable economic environment

INFRASTRUCTURAL ASSURANCE OF THE MECHANISM FOR REGULATING IMBALANCES IN THE MOVEMENT OF FINANCIAL RESOURCES OF THE UKRAINIAN ECONOMY IN THE CONTEXT OF EXTERNAL FLUCTUATIONS

The article proves that the state regulation of negative manifestations in the functioning of the financial architecture of the national economy is carried out on the basis of a list of effective instruments of national financial policy, directly fiscal and monetary. It is determined that the subjects of ordinary state regulation of the financial architecture of the national economy are the National Bank of Ukraine, the National Commission on Securities and Stock Market, other regulatory bodies (such as the Antimonopoly Committee of Ukraine and the Ministry of Finance of Ukraine and others). It is proposed to include in the goals of such regulation: protection of socio-economic interests of potential participants in financial architecture; equal access of relevant market participants to various components of the financial architecture; support of healthy competition in the financial market, level of transparency and openness, gradual integration into the international financial architecture. It is concluded that the presented strategic directions for state regulation of negative manifestations in the functioning of the financial architecture of the national economy are aimed at forming a reliable system for protecting the rights of investors, as well as protecting socio-economic interests of relevant consumers of financial services. The regulatory mechanism is presented, under which we propose to understand the interconnected system of subjects, forms, instruments and objects of financial market regulation, which operates to achieve sustainable development of financial architecture and all its components, which is generally aimed at improving the sustainability of national economy

The Banking System of Ukraine as Part of the Financial Market

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

Analyzing the Methods of Estimation of the Economic Security of Enterprises

The article is aimed at researching the basic methodological approaches of estimation of the economic security of enterprises. The basic methods of estimation of the level of economic security of the enterprises which are expedient for grouping according to such approaches are suggested: the resource-functional approach based on the estimation of economic security of enterprise by its functional components and for enterprise as a whole; indicator approach, which involves the estimation of the level of economic security of enterprise based on the use of an aggregate of indicators in various functional areas and comparison of their actual values with thresholds (indicators); expert approach based on the use of expert estimations of the level of economic security of enterprise; matrix approaches, involving the use of matrices to estimate the level of economic security of enterprise, built on the basis of clear and logical algorithms; methods of economic-mathematical modelling, implying the use of mathematical models and showing the influence of individual indicators (factors) on the level of security of enterprise, allowing to foresee different scenarios of the enterprise development subject to change of any given factor

STRATEGIC DIRECTIONS OF DEVELOPMENT OF FINANCIAL ARCHITECTURE OF THE ECONOMY OF UKRAINE

The article considers the strategic directions of development of the financial architecture of the Ukrainian economy. It is proved that it is necessary to pay close attention to the following areas: the use of specific accounting standards; promoting the increase of the level of transparency of domestic capital markets in the context of introduction of complex market segments and financial instruments for coordinated regulation, first of all, including relevant derivatives; organization of effective prudential regulation and control over banking institutions; systemic risk management of the banking sector; increasing the effectiveness of control over institutions that are insured in a single system of insurance of their deposits; consolidation of supervision in the context of the use of a wider range of diversified instruments in order to control and limit the relevant financial risks that are directly related to the activities of a particular consolidated group; development of special programs to control companies with a complex structure, on the basis of using a system of indicators to identify possible problems and imbalances, corporate risks that arise directly, the formation of a strict regime of control over all functionally strategic financial organizations

SUBSTANTIATING THE INFLUENCE OF THE RESULTS OF A COMPETENT ORGANIZATION’S FUNCTIONING ON THE EFFICIENCY OF THE NATIONAL ECONOMY

European integration processes have changed the requirements for organizations, shifting attention from external factors to internal properties. Unique knowledge and experience, combined with resources and technologies, shape the organization's competence, determining its ability to operate effectively. The increasing number of organizations capable of achieving high-performance indicators, i.e. competent in conditions of market activities coloured by military actions, is considered a factor in the development of the national economy. This work aims to justify the predominant impact of the results of Ukrainian organizations' activities, as an indicator of competence, on GDP volumes as a comprehensive indicator of economic efficiency and state development. Methods such as information systematization, grouping and comparative analysis, correlation regression, content and logical analysis, scientific induction, and deduction have been used. An obvious imbalance of the regional structure of the economy with the concentration of organizations in six leading regions (49,85%) was revealed, which does not always indicate their greatest impact on GDP volumes. This confirmed the inexpediency of considering the indicator of the number of organizations as a determining factor of influence on the national economy. The assumption of greater significance in ensuring the stable functioning of the economy based on the results of organizational activities has led to the analysis of the volumes of products produced and sold, their ratios, and projections of trends on GDP volumes. The higher performance of representatives of large and medium-sized businesses is explained by the presence of a wider list of competencies, therefore, higher competitiveness of organizations and the probability of resistance to external changes. Identity, but the unequal trends in production volumes and GDP outline prospects for further analysis of financial performance indicators in the context of their impact on the competence level of organizations, which most fully characterizes their ability to conduct successful activities, ensuring sustainable economic development

CONCEPTUAL PRINCIPLES OF FORMATION OF WORLD FINANCIAL ARCHITECTURE

The article considers the conceptual principles of formation of the world financial architecture. It is determined that the negative impact of global disparities is significantly exacerbated by the imperfection of the current financial mechanism, which follows from the basic fundamental principles of the global financial architecture. The main factors of negative impact of global disparities on the world economy include: imperfection of the financial mechanism, exacerbation of contradictions between financial and real sectors of the economy, national and international structures in the direction of strategic state and strengthening regionalism. It is proved that in the formation of the financial architecture in the context of globalization transformations it is necessary to clearly define the conditions for the implementation of the principle of fair burden sharing between private and official creditors, as well as between relevant groups of private creditors. That is, efforts should be directed at regulating liquidity, stabilizing the behavior of investors, using effective methods of assessing sovereign risk, establishing a mechanism for regulating financial markets in developed countries; formation of a financial system that could use all the benefits of global markets and capital mobility with minimal risk, obtaining effective protection of socially vulnerable groups. It is concluded that the development of modern financial architecture takes place in conditions of significant aggravation of contradictions between financial and real sectors of the national economy, national and international structures in the process of implementing effective strategic state interests and opportunities for large multinational corporations. It is proposed in further research to determine the organizational and economic principles for the interaction of national and global financial markets in the context of global transformation

Features of financial results management of banking institutions activities

The article deals with the main financial results of the banks' activities in recent years, the peculiarities of management of the banking institution, and suggests ways to improve the management of financial results. The subject of the research is the complex of theoretical and practical aspects of identification of management of financial results of the bank at all stages of its activity. The main tasks are 1) to consider the management of the financial performance of the banking institution; 2) assess the performance and profitability of Ukrainian banking institutions; 3) determine the strategic directions of management of financial results of a banking institution. Research methods. The article uses the following methods: economic-statistical, graphical, methods of comparative analysis. Methodological basis of the article became general scientific methods of cognition, generalization, method of comparative analysis and other methods of research. Results of work. Managing the financial performance of the banking institution helps maintain effective performance, sustainable development and solvency. In order to manage financial performance and financial sustainability, leading banks throughout the world are implementing the management of the continuity of banking business, which guarantees the bank's readiness for potential problems and risks. Conclusions according to the article. One of the most effective and topical instruments for today is the development of financial results management of banking institutions. In order to reduce the time spent on conducting all necessary banking and banking procedures, new systems based on the application of the experience of the leading world banks should be introduced