Imperatives of stable functioning and development of financial system

Abstract

The article focuses on defining an imperative of stable development and the financial system of Ukraine. It is proposed the determination of the effectiveness of the financial sector as the distribution of financial resources on the most favorable conditions in the most favorable investment environment with the lowest costs. It is formulated a definition of financial stability. That is the ability of the financial system to resist negative trends and effects in the financial sector that may affect the process of economic growth.

It is determined that the need to provide a financial stability updates the objectives of strengthening prudential control component of the financial system. It is argued that the aim of macro prudential approach to financial management system is to provide a rational distribution and effective use of financial resources and,in accordance, internal and external stability of the financial sector.

It is indicated the need of concentration efforts on the development of mechanisms of state influence on financial stability; system analysis and implementation of preventive measures to avoid systemic risks; providing effective management of liquidity of the financial system; modernizing and increasing the transparency of financial legislation and implementation of existing legislation by all subjects of financial relations.