INTERNAL FACTORS OF FINANCIAL VULNERABILITY OF UKRAINE AND PRIORITY MEASURES FOR OVERCOMING THEM
Abstract
The relevance of the publication is due to the need to identify the factors that provoke vulnerability in regulatory policy and increase the level of systemic volatility in the domestic economy, thereby reducing the possibility of ensuring the financial stability of Ukraine. The purpose of the article is to investigate the internal factors of vulnerability of the financial stability of Ukraine and to substantiate the recommendations to the relevant public authorities on how to counteract the risks and contribute to the improvement of financial stability. Research methods: terminological and statistical analysis, comparison, logical generalization, analysis, synthesis. The analysis is limited by the study of internal factors for the period 2014–2018, as well as the available statistical information as of October 2019.
The analysis of internal factors of vulnerability of the financial sphere of Ukraine allowed to determine the main ones related to the sphere of public finances (the presence of budget deficit, accompanied by a chronic disturbance of the balance of its sources of financing and the increase in the volume of public debt; states); banking (maintaining a high level of dollarization of bank balances, a significant proportion of non-performing loans, etc.).
The results of the analysis suggested ways of ensuring fiscal sustainability (use of risk-oriented approach in tax control; improving the assessment of fiscal risks in accordance with the requirements of the IMF Fiscal Transparency Code; disclosure in the format of open data of all forms of financial reporting and reporting for monitoring budget-forming taxpayers in industries and regions); increase of the debt stability of the state (measures to approximate and keep debt indicators within safe limits, to increase the efficiency of attracting financial resources in the internal market); on strengthening the stability in the banking sector (adoption of a number of regulatory acts on improving the efficiency of management of problem assets of banks; legislative regulation of the issue of distribution of profits of state-owned banks by amending the Law of Ukraine «On Management of State Property»).
The findings and recommendations obtained from the analysis will have a positive impact on ensuring the financial stability of the country and reducing its vulnerability in the post-crisis recovery of Ukraine’s financial system.
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