Money, finances and credit

Financial sector development and economic factors of its support in Ukraine

Economic Annals-XXI

Economic Annals-ХХI: Volume 151, Issue 5-6, Pages: 77-81

Citation information:
Kovalenko, Yu. (2015). Financial sector development and economic factors of its support in Ukraine. Economic Annals-XXI, 5-6, 77-81. https://ea21journal.world/index.php/ea-v151-19/

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Yu. Kovalenko
D.Sc. (Economics),
Associate Professor,
National State Tax Service University
31 K. Marx Str., Irpin, 08201, Ukraine
kovalenko0202@ukr.net

Financial sector development and economic factors of its support in Ukraine

Abstract. Introduction. The issue of further development of the financial sector (financial corporations sector) has gained importance due to the interaction of the controversial new type of market institutions with the old informal environment. This leads to a deepening of the problems reflected in the practice of financial corporations and negatively affects the current state of the financial market.

Purpose of the study is to identify factors affecting the development of the financial sector, the possibility of applying the catch up strategy.

Result. Economic growth is one of the manifestations of economic development scenarios, with quantitative changes in system parameters. Economic development of the financial sector is in qualitative changes of the transition system from one state to another due to structural changes and new technologies. The basic factors of the financial sector in particular economic sectors are revealed as well as the contribution of economic sectors (Ukraine, 2010–2013), GDP per capita (Ukraine, 2014), quality of life (Ukraine, 2013), sustainability of economic development of the country (Ukraine, 2013). The economic development as a dynamic process of reducing the gap between developed and developing countries is examined. It may take the catching-up signs or advanced. Analyzed current trends in world capital markets. Inability to use the catch-up strategy for Ukraine’s economy and the country’s financial sector in particular is proved. It is necessary to conduct serious practical work on bringing the institutional framework of the financial sector to European norms.

Conclusion. The level of financial sector development is determined by qualitative structural changes with new technologies and financial institutions. Today it is necessary to consider the trends of capital markets and to develop measures to ensure the sustainable development of the financial sector of Ukraine towards improving economic growth. A comprehensive program of financial sector development should be based on carefully selected priorities and broad dissemination of modern technology, promoting the collective interest of the organization and development of powerful financial institutions and their communities.

Keywords: Financial Sector; Economic Development; Economic Growth; Institutions; Welfare

JEL Classification: Е69; F47; G20; O16

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Received 08.05.2015

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