Financial constraints of non-financial corporations as a factor of financial stability of the banking system

Abstract

Introduction. Under the conditions of an active development of financial sector and the demand for expanding its capabilities by business entities there is a need to attract additional capital. It is a reason for finding a certain balance and arrangement of mutually beneficial economic relations. The phenomenon of financial constraints as the company's low ability to attract additional external capital plays a crucial role in modern non-perfect market. The  searching for ways of expansion of access to credit by the non-financial corporate sector under the requirement of financial stability support of the banking system is a basis for building sustainable economic ties on the financial market and safe growth of the country's economy without propagating the asymmetric credit cycle. For such a cycle, the stage of recovery of supply and demand in the market is faster and more stable.

Purpose. The justification of theoretical basis of the phenomenon of financial constraints and its key channels of interaction with the financial performance of the banking system and its financial stability.

Results. The scientific results of work are the detection of the main channels of mutual influence of the financial constraints of non-financial corporations and the financial stability of banks, identification of directions for reducing financial constraints among economic entities in order to expand the possibilities for activating their economic development, that allows to increase the comprehensiveness of decisions on expansion of access to capital of banks and determine their impact on systemic financial risks and financial stability of the banking system in overall.