Pub Date : 2023-08-05DOI: 10.33763/finukr2023.05.108
D. Khokhych, G. Bortnikov
Introduction. The article studies two main monetary regimes in the process of monetary reform of central banks: a target-based regime and a rule-based regime. Inflation targeting is the most common rule of monetary policy. Using the key rate as a monetary policy tool can ensure price stability and economic growth. Problem Statement. Using the interest rate rule of inflation targeting, the central bank has certain advantages over the target variables. If preferences change unexpectedly, they are not taken into account by economic agents as quickly and act as an exogenous shock to the economy. This allows the central bank to test its policy against a rule that is potentially persistent in many cases of macroeconomic models. The purpose is to evaluate the reforms of the monetary regimes of the Reserve Bank of New Zealand and the Federal Reserve System, which are based on legally established rules and instruments of monetary policy, which enables the central bank to make effective monetary decisions to achieve price stability and sustainable employment. Methods. The Taylor rule was used to test the hypothesis that there is a relationship between the inflation target and the variables of the Taylor function, including the gap between GDP and potential GDP, as well as the determination of the key rate based on the quantitative parameters of the target function. This confirms the expediency of applying the Taylor rule when implementing the inflation targeting regime. Results. Reforms of monetary regimes were aimed at clarifying the political responsibility of central banks, strengthening their independence in making decisions related to monetary policy objectives. The reforms were supposed to contribute to increasing the level of transparency by improving the effectiveness of the communication policy, which consisted in transmitting policy decisions from the central bank to the public and signaling future political intentions. In general, the responsibility in the inflation targeting regime is enhanced by the public nature of the assumed obligations related to the announced goal and the requirements put forward by the central bank regarding its implementation. Achieving the goal becomes an indicator of the central bank's effective activity. Conclusions. Many of the aspects that were introduced in New Zealand and the US – the public commitment to an inflation target, high levels of transparency and accountability – are now considered the best practice in monetary policy. Making targets public promotes accountability, especially if the central bank has a single policy objective – price stability or an inflation target. Otherwise, broad independence in decision-making may make the central bank less accountable, and therefore independence should be clearly linked to the objectives rather than the choice of instruments, which is the best strategy for central bank reform.
{"title":"Application of monetary regimes in monetary policy decision-making process","authors":"D. Khokhych, G. Bortnikov","doi":"10.33763/finukr2023.05.108","DOIUrl":"https://doi.org/10.33763/finukr2023.05.108","url":null,"abstract":"Introduction. The article studies two main monetary regimes in the process of monetary reform of central banks: a target-based regime and a rule-based regime. Inflation targeting is the most common rule of monetary policy. Using the key rate as a monetary policy tool can ensure price stability and economic growth. Problem Statement. Using the interest rate rule of inflation targeting, the central bank has certain advantages over the target variables. If preferences change unexpectedly, they are not taken into account by economic agents as quickly and act as an exogenous shock to the economy. This allows the central bank to test its policy against a rule that is potentially persistent in many cases of macroeconomic models. The purpose is to evaluate the reforms of the monetary regimes of the Reserve Bank of New Zealand and the Federal Reserve System, which are based on legally established rules and instruments of monetary policy, which enables the central bank to make effective monetary decisions to achieve price stability and sustainable employment. Methods. The Taylor rule was used to test the hypothesis that there is a relationship between the inflation target and the variables of the Taylor function, including the gap between GDP and potential GDP, as well as the determination of the key rate based on the quantitative parameters of the target function. This confirms the expediency of applying the Taylor rule when implementing the inflation targeting regime. Results. Reforms of monetary regimes were aimed at clarifying the political responsibility of central banks, strengthening their independence in making decisions related to monetary policy objectives. The reforms were supposed to contribute to increasing the level of transparency by improving the effectiveness of the communication policy, which consisted in transmitting policy decisions from the central bank to the public and signaling future political intentions. In general, the responsibility in the inflation targeting regime is enhanced by the public nature of the assumed obligations related to the announced goal and the requirements put forward by the central bank regarding its implementation. Achieving the goal becomes an indicator of the central bank's effective activity. Conclusions. Many of the aspects that were introduced in New Zealand and the US – the public commitment to an inflation target, high levels of transparency and accountability – are now considered the best practice in monetary policy. Making targets public promotes accountability, especially if the central bank has a single policy objective – price stability or an inflation target. Otherwise, broad independence in decision-making may make the central bank less accountable, and therefore independence should be clearly linked to the objectives rather than the choice of instruments, which is the best strategy for central bank reform.","PeriodicalId":209191,"journal":{"name":"Fìnansi Ukraïni","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116657115","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-05DOI: 10.33763/finukr2023.05.050
O. Lyubich, V. Stolyarov
Introduction. Loan restructuring is one of the toolkit for the resolution of problem loans. It directly affects the quality of assets, profitability and capitalization. This credit risk management tool always requires fine-tuning with the involvement of the regulator, as problem loans may be misclassified, namely restructured rather than classified as non-performing, and provisions may be inadequate to the risk, i.e. understated. Problem Statement. In the conditions of a systemic crisis, the probability of defaults on loans increases, and it is extremely important that lenders go to exactly those borrowers who maintain their viability and are ready to resume debt service immediately after the normalization of working conditions. It depends on the position of the regulator to what extent this practice is uniform among banks to prevent distortion of reporting. Along with this, reaching an agreement between the parties is always a difficult process of finding compromises and balancing interests. Purpose. To study the domestic and international experience of commercial banks and banking supervisory bodies in restructuring problem loans for borrowers who have experienced financial difficulties due to the coronavirus pandemic. Methods. The study was conducted by comparing domestic and international practice in the field of credit restructuring regulation and analyzing the disclosure of relevant information in financial statements by banks using the methods of statistical analysis of series dynamics and factor analysis of data. Content analysis was used in the review of scientific publications and reports. Results. The actions of the National Bank of Ukraine on the regulation of credit restructuring can be assessed as palliative, since they do not establish clear rules and do not guarantee the prevention of manipulations by banks, and also do not encourage creditors to grant concessions to borrowers. Banks with foreign capital (of Western countries) were guided by the instructions of the European supervisory authority EBA and the instructions of the parent bank regarding the recognition of the quality of restructured loans. Independent auditors of Ukrainian banks used different approaches to disclosure of information about restructuring in annual reports. In Ukraine, as in most countries of the world, the regulatory body gave temporary consent to the exclusion of restructured loans from the amount of problem loans. The benefit for banks is the ability not to accrue reserves for such exposures. However, the suspension of principal payments did not exempt him from paying interest, and in fact the borrower overpaid for the loan. It seems correct if the regulator would require recognition of the loan as problematic in case of repeated restructuring. Conclusions. The NBU is called upon to summarize the results of the work carried out by banks on credit restructuring and to provide banks with specific recommendations so that the banking sector would be ready
{"title":"Loan restructuring programs in the conditions of the coronavirus pandemic: a comparative analysis of domestic and international practice","authors":"O. Lyubich, V. Stolyarov","doi":"10.33763/finukr2023.05.050","DOIUrl":"https://doi.org/10.33763/finukr2023.05.050","url":null,"abstract":"Introduction. Loan restructuring is one of the toolkit for the resolution of problem loans. It directly affects the quality of assets, profitability and capitalization. This credit risk management tool always requires fine-tuning with the involvement of the regulator, as problem loans may be misclassified, namely restructured rather than classified as non-performing, and provisions may be inadequate to the risk, i.e. understated. Problem Statement. In the conditions of a systemic crisis, the probability of defaults on loans increases, and it is extremely important that lenders go to exactly those borrowers who maintain their viability and are ready to resume debt service immediately after the normalization of working conditions. It depends on the position of the regulator to what extent this practice is uniform among banks to prevent distortion of reporting. Along with this, reaching an agreement between the parties is always a difficult process of finding compromises and balancing interests. Purpose. To study the domestic and international experience of commercial banks and banking supervisory bodies in restructuring problem loans for borrowers who have experienced financial difficulties due to the coronavirus pandemic. Methods. The study was conducted by comparing domestic and international practice in the field of credit restructuring regulation and analyzing the disclosure of relevant information in financial statements by banks using the methods of statistical analysis of series dynamics and factor analysis of data. Content analysis was used in the review of scientific publications and reports. Results. The actions of the National Bank of Ukraine on the regulation of credit restructuring can be assessed as palliative, since they do not establish clear rules and do not guarantee the prevention of manipulations by banks, and also do not encourage creditors to grant concessions to borrowers. Banks with foreign capital (of Western countries) were guided by the instructions of the European supervisory authority EBA and the instructions of the parent bank regarding the recognition of the quality of restructured loans. Independent auditors of Ukrainian banks used different approaches to disclosure of information about restructuring in annual reports. In Ukraine, as in most countries of the world, the regulatory body gave temporary consent to the exclusion of restructured loans from the amount of problem loans. The benefit for banks is the ability not to accrue reserves for such exposures. However, the suspension of principal payments did not exempt him from paying interest, and in fact the borrower overpaid for the loan. It seems correct if the regulator would require recognition of the loan as problematic in case of repeated restructuring. Conclusions. The NBU is called upon to summarize the results of the work carried out by banks on credit restructuring and to provide banks with specific recommendations so that the banking sector would be ready ","PeriodicalId":209191,"journal":{"name":"Fìnansi Ukraïni","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128784630","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-05DOI: 10.33763/finukr2023.05.007
Tetiana Bohdan, I. Bohdan
Introduction. The extraordinary conditions for the government’s functioning during the pandemic and warfare provoked a strong respose of the state institutions, as a result of which the size of budget deficit in Ukraine over 2022-2023 exceeded a lot the historical values and averages for the different country groups as most indicators of the debt burden worsened, generating the danger of debt unsustainability. Problem Statement. Identification of the nature of Ukraine’s fiscal policy through the lens of past and contemporary global phenomenon, identification of macro-financial factors impacting he state of debt sustainability under the extreme conditions, analysis of debt burden indicators and fiscal risks in order to outline the ways of solving the fiscal and debt problems in Ukraine. Purpose. To reveal the global patterns and national features of the expansive fiscal policy conduct and public debt accumulation in emergency conditions which are connected with the pandemic and military actions , to investigate the factors of Ukrainian government’s solvency deterioration and to assess the relevant risks, as well as to define the tools of public debt management in the medium run. Methods. General scientific and special methods are applied: analysis and synthesis, description and comparison, historical method, method of theoretical generalization and abstract-logical method. Results. It has been found that the impact of operations of the general government on aggregate demand in Ukraine was positive in 2020, 2021 and 2022, and this situation was in sharp contrast to the period of 2015-2019, when fiscal policy produced restrictive effects. Fiscal policy in Ukraine was of pro-cyclical nature in 2014-2018 and turned to countercyclical stance only in 2020 with sustaining this course until 2023. It has been proven that in Ukraine the debt sustainability criteria are violated across major part of debt burden indicators , that signal the high solvency risks and liquidity risks for general government; moreover, relative to 2019, the dynamics of most indicators in 2020 and 2022-2023 were unfavorable. Computations conducted indicate that refinancing risks, foreign exchange and interest rate risks inherent to the structure of public debt have increased significantly with the start of hostilities in Ukraine. Conclusions. In the post-war period, contraction of budget deficit and well-balanced restructuring of the external public debt should become the main levers for debt reduction. Effective management of public debt with consideration of existing risks are important for securing macro-financial stability and active government’s involvement in the post-war reconstruction of the country.
{"title":"Budget deficits and public debt of Ukraine under the shocks of pandemic and military aggression","authors":"Tetiana Bohdan, I. Bohdan","doi":"10.33763/finukr2023.05.007","DOIUrl":"https://doi.org/10.33763/finukr2023.05.007","url":null,"abstract":"Introduction. The extraordinary conditions for the government’s functioning during the pandemic and warfare provoked a strong respose of the state institutions, as a result of which the size of budget deficit in Ukraine over 2022-2023 exceeded a lot the historical values and averages for the different country groups as most indicators of the debt burden worsened, generating the danger of debt unsustainability. Problem Statement. Identification of the nature of Ukraine’s fiscal policy through the lens of past and contemporary global phenomenon, identification of macro-financial factors impacting he state of debt sustainability under the extreme conditions, analysis of debt burden indicators and fiscal risks in order to outline the ways of solving the fiscal and debt problems in Ukraine. Purpose. To reveal the global patterns and national features of the expansive fiscal policy conduct and public debt accumulation in emergency conditions which are connected with the pandemic and military actions , to investigate the factors of Ukrainian government’s solvency deterioration and to assess the relevant risks, as well as to define the tools of public debt management in the medium run. Methods. General scientific and special methods are applied: analysis and synthesis, description and comparison, historical method, method of theoretical generalization and abstract-logical method. Results. It has been found that the impact of operations of the general government on aggregate demand in Ukraine was positive in 2020, 2021 and 2022, and this situation was in sharp contrast to the period of 2015-2019, when fiscal policy produced restrictive effects. Fiscal policy in Ukraine was of pro-cyclical nature in 2014-2018 and turned to countercyclical stance only in 2020 with sustaining this course until 2023. It has been proven that in Ukraine the debt sustainability criteria are violated across major part of debt burden indicators , that signal the high solvency risks and liquidity risks for general government; moreover, relative to 2019, the dynamics of most indicators in 2020 and 2022-2023 were unfavorable. Computations conducted indicate that refinancing risks, foreign exchange and interest rate risks inherent to the structure of public debt have increased significantly with the start of hostilities in Ukraine. Conclusions. In the post-war period, contraction of budget deficit and well-balanced restructuring of the external public debt should become the main levers for debt reduction. Effective management of public debt with consideration of existing risks are important for securing macro-financial stability and active government’s involvement in the post-war reconstruction of the country.","PeriodicalId":209191,"journal":{"name":"Fìnansi Ukraïni","volume":"22 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127632338","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-05DOI: 10.33763/finukr2023.05.030
O. Sharov
Introduction. The COVID-19 pandemic has forced central banks to make a significant correction of their monetary policy, which has been discussed in many academician publications. At the same time, much less attention has been paid to the question of the risks that arise. Problem Statement. The coronavirus pandemic was the first wave of new disruptive forces that created new and seriously exacerbated some existing risks, including economic ones, and, in particular, those that arise during the implementation of monetary policy, or significantly affect it. Further events caused by the full-scale invasion of Russian troops into Ukraine became the second wave, which became felt throughout the world and only cemented the state of the “new reality”. Purpose. Analysis and systematization of existing risk assessments that arise in connection with the modification of monetary policy in response to the threat of the COVID-19 pandemic, independent identification of additional risks and a comprehensive qualitative assessment of the degree of threats arising from these risks. Methods. The methodology of the system approach, factual, situational analysis and synthesis, and the event analysis method, which is traditional for analyzing whether the relevant event has a significant impact on a certain activity (in our case, monetary policy), were used. Results. The “new reality” caused by the coronavirus pandemic and established by the full-scale invasion of Russian troops into Ukraine led to the emergence of a number of macroeconomic risks that were a direct result of these events (“panic risk”) or its consequences, caused not so much by, for example, the pandemic itself, but ill-conceived, sometimes inadequate anti-pandemic measures resorted to by governments and, to a lesser extent, monetary authorities (risks of economic crisis and stagflation). At the same time, the triggers of these macroeconomic risks, in addition to panic, were some specific financial risks (credit, currency, interest), insufficient attention to the manifestation of which in the conditions of the “new reality” led to the emergence of a serious systemic risk in some countries. In general, however, it was possible to keep the situation under control, which, however, forced the fiscal and monetary authorities to take extraordinary measures. Conclusions. The coronavirus pandemic caused serious upheavals in the field of monetary relations and created new and increased traditional risks for actors in this industry (which, to one degree or another, includes all participants in economic relations). However, considering the qualitative side of the problem, it can be indicated that the mentioned risks are divided, first of all, into i) risks for monetary policy itself and ii) risks arising from the conduct of monetary policy, which pose threats to the relevant sectors of the economy (most often , for the financial and banking system) and return to the monetary authorities in the form of new challenge
{"title":"Monetary policy risks: “new reality”","authors":"O. Sharov","doi":"10.33763/finukr2023.05.030","DOIUrl":"https://doi.org/10.33763/finukr2023.05.030","url":null,"abstract":"Introduction. The COVID-19 pandemic has forced central banks to make a significant correction of their monetary policy, which has been discussed in many academician publications. At the same time, much less attention has been paid to the question of the risks that arise. Problem Statement. The coronavirus pandemic was the first wave of new disruptive forces that created new and seriously exacerbated some existing risks, including economic ones, and, in particular, those that arise during the implementation of monetary policy, or significantly affect it. Further events caused by the full-scale invasion of Russian troops into Ukraine became the second wave, which became felt throughout the world and only cemented the state of the “new reality”. Purpose. Analysis and systematization of existing risk assessments that arise in connection with the modification of monetary policy in response to the threat of the COVID-19 pandemic, independent identification of additional risks and a comprehensive qualitative assessment of the degree of threats arising from these risks. Methods. The methodology of the system approach, factual, situational analysis and synthesis, and the event analysis method, which is traditional for analyzing whether the relevant event has a significant impact on a certain activity (in our case, monetary policy), were used. Results. The “new reality” caused by the coronavirus pandemic and established by the full-scale invasion of Russian troops into Ukraine led to the emergence of a number of macroeconomic risks that were a direct result of these events (“panic risk”) or its consequences, caused not so much by, for example, the pandemic itself, but ill-conceived, sometimes inadequate anti-pandemic measures resorted to by governments and, to a lesser extent, monetary authorities (risks of economic crisis and stagflation). At the same time, the triggers of these macroeconomic risks, in addition to panic, were some specific financial risks (credit, currency, interest), insufficient attention to the manifestation of which in the conditions of the “new reality” led to the emergence of a serious systemic risk in some countries. In general, however, it was possible to keep the situation under control, which, however, forced the fiscal and monetary authorities to take extraordinary measures. Conclusions. The coronavirus pandemic caused serious upheavals in the field of monetary relations and created new and increased traditional risks for actors in this industry (which, to one degree or another, includes all participants in economic relations). However, considering the qualitative side of the problem, it can be indicated that the mentioned risks are divided, first of all, into i) risks for monetary policy itself and ii) risks arising from the conduct of monetary policy, which pose threats to the relevant sectors of the economy (most often , for the financial and banking system) and return to the monetary authorities in the form of new challenge","PeriodicalId":209191,"journal":{"name":"Fìnansi Ukraïni","volume":"334 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115880001","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-05DOI: 10.33763/finukr2023.05.090
I. Bublyk
Introduction. The nature of Ukraine's economic development over the past thirty years reflects its dependence on global financial and economic cycles. The nature of this dependence lies in the stable interrelationship of the global commodity markets with factors of internal financial stability. One of the important ways to overcome such dependence is a nationally-rooted monetary policy aimed at supporting domestic economic activity and weakening the influence of the external environment on financial stability. Problem Statement. Increasing the internal financial stability of the national economy and the regulatory potential of monetary policy by limiting their dependence on global economic cycles. Purpose: Formalization of the relationship between the financial stability of the national economy and changes in the global commodity markets and the identification of prospective monetary policy measures to mitigate them. Methods. General scientific and special methods are used : theoretical generalization, systematic, abstract-logical and comparative analysis, synthesis, grouping. Results. The article summarizes the regularities that determine the cyclical repetition of financial and economic crises in Ukraine. In particular, it was noted that the stability of small open economies, a significant share of whose income is formed by the export of raw materials, largely depends on the situation on the global raw materials markets. Cyclical downturns in these markets cause financial crises, which lead to the decapitalization of small open economies and thus make their structural innovative development impossible. Conclusions. In order to ensure the sustainable development of small open raw material economies, it is necessary to carry out an appropriate institutional policy of the state aimed at ensuring the development of a more complex economic base with a departure from raw material dependence. This requires a corresponding modernization of monetary policy in terms of expanding control over the movement of capital flows, limiting the volatility of the exchange rate.
{"title":"The impact of some external factors on financial instability in Ukraine","authors":"I. Bublyk","doi":"10.33763/finukr2023.05.090","DOIUrl":"https://doi.org/10.33763/finukr2023.05.090","url":null,"abstract":"Introduction. The nature of Ukraine's economic development over the past thirty years reflects its dependence on global financial and economic cycles. The nature of this dependence lies in the stable interrelationship of the global commodity markets with factors of internal financial stability. One of the important ways to overcome such dependence is a nationally-rooted monetary policy aimed at supporting domestic economic activity and weakening the influence of the external environment on financial stability. Problem Statement. Increasing the internal financial stability of the national economy and the regulatory potential of monetary policy by limiting their dependence on global economic cycles. Purpose: Formalization of the relationship between the financial stability of the national economy and changes in the global commodity markets and the identification of prospective monetary policy measures to mitigate them. Methods. General scientific and special methods are used : theoretical generalization, systematic, abstract-logical and comparative analysis, synthesis, grouping. Results. The article summarizes the regularities that determine the cyclical repetition of financial and economic crises in Ukraine. In particular, it was noted that the stability of small open economies, a significant share of whose income is formed by the export of raw materials, largely depends on the situation on the global raw materials markets. Cyclical downturns in these markets cause financial crises, which lead to the decapitalization of small open economies and thus make their structural innovative development impossible. Conclusions. In order to ensure the sustainable development of small open raw material economies, it is necessary to carry out an appropriate institutional policy of the state aimed at ensuring the development of a more complex economic base with a departure from raw material dependence. This requires a corresponding modernization of monetary policy in terms of expanding control over the movement of capital flows, limiting the volatility of the exchange rate.","PeriodicalId":209191,"journal":{"name":"Fìnansi Ukraïni","volume":"111 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133730662","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-04DOI: 10.33763/finukr2023.04.092
Valerij Oparin, T. Paientko
Introduction. Financial science like any other social activity area is constantly evolving. This is manifested in a deeper study of theoretical concepts and the use of innovative financial instruments and technologies and in identifying new research areas on financial phenomena. In recent years, Ukrainian financial science has focused on the problems of public finance and the development of the financial infrastructure of society. At the same time, Western financial thought is actively developing research in the field of macrofinance, positioning macrofinance as a new direction not only in theory but also in practice. Problem Statement. This research is driven by the need to identify and quantify the relationships and interdependencies between individual macro-level components, to assess risks and their impact on the macro environment, and prevent crisis phenomena on this basis. Purpose. The aim is to characterize macrofinance as a new trend in financial research. Methods. The research is based on the exploratory methodology. Results. The article characterizes three main trends in the development of macrofinance as an independent direction in financial science and practice: the emergence and development of a new direction in research, the growth of educational programs in foreign universities with the keyword “macrofinance” and the creation of project groups and departments in leading research universities; the allocation of the macrofinancial aspect in the practice of financial management. Conclusions. The need for practice explains the popularity of macrofinanceas a separate area of research. In Ukraine, it is already necessary to build a theoretical basis for macrofinance as a separate research area, which is necessary to integrate Ukrainian financial science into the world community. The experience of developing the practical foundations of macrofinance in Western Europe should signal to Ukraine that it is necessary to gradually create a regulatory framework for equal cooperation with Western countries in macrofinance. Ukrainian higher education institutions should study the proposals of leading Western universities regarding educational programs and courses, which will ensure the modernization of domestic educational programs in finance and increase the opportunities for academic mobility of students and professors.
{"title":"Macrofinance as a new trend in finance research","authors":"Valerij Oparin, T. Paientko","doi":"10.33763/finukr2023.04.092","DOIUrl":"https://doi.org/10.33763/finukr2023.04.092","url":null,"abstract":"Introduction. Financial science like any other social activity area is constantly evolving. This is manifested in a deeper study of theoretical concepts and the use of innovative financial instruments and technologies and in identifying new research areas on financial phenomena. In recent years, Ukrainian financial science has focused on the problems of public finance and the development of the financial infrastructure of society. At the same time, Western financial thought is actively developing research in the field of macrofinance, positioning macrofinance as a new direction not only in theory but also in practice. Problem Statement. This research is driven by the need to identify and quantify the relationships and interdependencies between individual macro-level components, to assess risks and their impact on the macro environment, and prevent crisis phenomena on this basis. Purpose. The aim is to characterize macrofinance as a new trend in financial research. Methods. The research is based on the exploratory methodology. Results. The article characterizes three main trends in the development of macrofinance as an independent direction in financial science and practice: the emergence and development of a new direction in research, the growth of educational programs in foreign universities with the keyword “macrofinance” and the creation of project groups and departments in leading research universities; the allocation of the macrofinancial aspect in the practice of financial management. Conclusions. The need for practice explains the popularity of macrofinanceas a separate area of research. In Ukraine, it is already necessary to build a theoretical basis for macrofinance as a separate research area, which is necessary to integrate Ukrainian financial science into the world community. The experience of developing the practical foundations of macrofinance in Western Europe should signal to Ukraine that it is necessary to gradually create a regulatory framework for equal cooperation with Western countries in macrofinance. Ukrainian higher education institutions should study the proposals of leading Western universities regarding educational programs and courses, which will ensure the modernization of domestic educational programs in finance and increase the opportunities for academic mobility of students and professors.","PeriodicalId":209191,"journal":{"name":"Fìnansi Ukraïni","volume":"64 1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133072936","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-04DOI: 10.33763/finukr2023.04.076
I. Abernikhina
Introduction. Life insurance arises from the need for individuals to provide financial protection and security for themselves and their families. It can be used as a tool for accumulating financial resources and as a means of pension planning. Life insurance in Ukraine remains less developed compared to other European countries due to low confidence in insurance companies, a difficult economic situation in the country, and the lack of proper legislative regulation in this area of insurance. Problem Statement. The increasing proportion of elderly people, according to demographic projections, determines the corresponding requirements for reforming primarily the social security sphere, and life insurance could become one of the effective ways of supplemental social security. Purpose. To highlight the potentialities of using life insurance as supplemental social security. Methods. We used general scientific and special methods, i.e. analysis, synthesis, grouping, description, comparison, theoretical generalization, and abstract-logical methods. Results. It is emphasized that life insurance inherently aims at additional protection and support of the financial and social welfare of the population. It is noted that in most developed countries, life insurance is integrated into the social security system. It is proved that life insurance in Ukraine is not a mandatory part of the social security system, but is available on a voluntary basis through insurance companies. The number of insured citizens and life insurance contracts concluded by life insurers in Ukraine during the last 5 years has been analyzed. Research of the voluntary life insurance market in Ukraine has been conducted and an overview of the programs offered by insurance companies according to the classes of insurance has been made. Conclusions. Life insurance as an opportunity for supplemental social security has a significant potential in our country. However, the impact of some negative factors, in particular, military aggression, and an underdeveloped stock market hinders the development of the voluntary life insurance market and the possibility to expand the share of the insured population of our country. Taking into account statistics, which are aggravated by the military situation in the country, there is a need for clearly defined legislative conditions for the use of life insurance as a supplemental method of social security.
{"title":"Life insurance as supplemental social security","authors":"I. Abernikhina","doi":"10.33763/finukr2023.04.076","DOIUrl":"https://doi.org/10.33763/finukr2023.04.076","url":null,"abstract":"Introduction. Life insurance arises from the need for individuals to provide financial protection and security for themselves and their families. It can be used as a tool for accumulating financial resources and as a means of pension planning. Life insurance in Ukraine remains less developed compared to other European countries due to low confidence in insurance companies, a difficult economic situation in the country, and the lack of proper legislative regulation in this area of insurance. Problem Statement. The increasing proportion of elderly people, according to demographic projections, determines the corresponding requirements for reforming primarily the social security sphere, and life insurance could become one of the effective ways of supplemental social security. Purpose. To highlight the potentialities of using life insurance as supplemental social security. Methods. We used general scientific and special methods, i.e. analysis, synthesis, grouping, description, comparison, theoretical generalization, and abstract-logical methods. Results. It is emphasized that life insurance inherently aims at additional protection and support of the financial and social welfare of the population. It is noted that in most developed countries, life insurance is integrated into the social security system. It is proved that life insurance in Ukraine is not a mandatory part of the social security system, but is available on a voluntary basis through insurance companies. The number of insured citizens and life insurance contracts concluded by life insurers in Ukraine during the last 5 years has been analyzed. Research of the voluntary life insurance market in Ukraine has been conducted and an overview of the programs offered by insurance companies according to the classes of insurance has been made. Conclusions. Life insurance as an opportunity for supplemental social security has a significant potential in our country. However, the impact of some negative factors, in particular, military aggression, and an underdeveloped stock market hinders the development of the voluntary life insurance market and the possibility to expand the share of the insured population of our country. Taking into account statistics, which are aggravated by the military situation in the country, there is a need for clearly defined legislative conditions for the use of life insurance as a supplemental method of social security.","PeriodicalId":209191,"journal":{"name":"Fìnansi Ukraïni","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114784007","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-04DOI: 10.33763/finukr2023.04.036
O. Lyubich, D. Oliinyk
Introduction. The issue of the role of state-owned banks in modern conditions is attracting more and more attention. In Ukraine, the share of the state-owned banks segment makes up more than half of the banking services market. Accordingly, the synthesis of existing experience and the development of approaches to the use of the potential of state banks in the interests of supporting the development of the economy in crisis conditions is an urgent scientific task for Ukraine. Problem Statement. The role and place of state banks in ensuring economic development in conditions of exogenous challenges. Purpose. To determine the peculiarities of the work of banks with state participation in the capital in Ukraine and to provide recommendations for increasing the efficiency of using their potential in war conditions and at the stage of post-war economic recovery. Methods. The work uses the methods of theoretical generalization, systematic, comparative and economic analysis, systematization, logical generalization, analytical presentation, and synthesis. Results. In accordance with foreign experience, it has been confirmed that in the conditions of wartime challenges, state banks play an important stabilizing role in ensuring the stability of the financial market. During the war, Ukrainian state banks were able not only to ensure uninterrupted provision of financial services and payment and settlement operations, but also to support the implementation of state credit programs. The segment of state banks plays an important role in the financial support of the state's fiscal policy. Such a role of state-owned banks in Ukraine will most likely remain at the stage of post-war economic recovery. Conclusions. In accordance with the acquired advantages and experience of pre-war activities, the forces of state banking institutions should be concentrated in the key areas of supporting the functioning of the economy in wartime conditions within the framework of defined state policy tasks. At the same time, the strategy of their activities needs to be adjusted with increased specialization in accordance with the strategic directions of economic recovery.
{"title":"Strategic imperatives of functioning of public sector banks in the post-war stage","authors":"O. Lyubich, D. Oliinyk","doi":"10.33763/finukr2023.04.036","DOIUrl":"https://doi.org/10.33763/finukr2023.04.036","url":null,"abstract":"Introduction. The issue of the role of state-owned banks in modern conditions is attracting more and more attention. In Ukraine, the share of the state-owned banks segment makes up more than half of the banking services market. Accordingly, the synthesis of existing experience and the development of approaches to the use of the potential of state banks in the interests of supporting the development of the economy in crisis conditions is an urgent scientific task for Ukraine. Problem Statement. The role and place of state banks in ensuring economic development in conditions of exogenous challenges. Purpose. To determine the peculiarities of the work of banks with state participation in the capital in Ukraine and to provide recommendations for increasing the efficiency of using their potential in war conditions and at the stage of post-war economic recovery. Methods. The work uses the methods of theoretical generalization, systematic, comparative and economic analysis, systematization, logical generalization, analytical presentation, and synthesis. Results. In accordance with foreign experience, it has been confirmed that in the conditions of wartime challenges, state banks play an important stabilizing role in ensuring the stability of the financial market. During the war, Ukrainian state banks were able not only to ensure uninterrupted provision of financial services and payment and settlement operations, but also to support the implementation of state credit programs. The segment of state banks plays an important role in the financial support of the state's fiscal policy. Such a role of state-owned banks in Ukraine will most likely remain at the stage of post-war economic recovery. Conclusions. In accordance with the acquired advantages and experience of pre-war activities, the forces of state banking institutions should be concentrated in the key areas of supporting the functioning of the economy in wartime conditions within the framework of defined state policy tasks. At the same time, the strategy of their activities needs to be adjusted with increased specialization in accordance with the strategic directions of economic recovery.","PeriodicalId":209191,"journal":{"name":"Fìnansi Ukraïni","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128508140","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-04DOI: 10.33763/finukr2023.04.007
A. Sokolovska, L. Rainova
Introduction. The aggravation of the problem of inequality and poverty in the conditions of Russia’s full-scale war against Ukraine determines giving priority to its mitigation in the period of post-war reconstruction. At the same time, ensuring the reduction of income inequality in the period after the termination or abolition of martial law is expected to be achieved by using the redistributive role of taxes, primarily personal income tax. Problem Statement. Although a progressive income tax is considered to be one of the main tools for reducing inequality, a proportional personal income tax can also increase the progressivity of taxation through a well-designed mechanism of tax-exempt amount. The purpose of the article is to analyze the state of fulfillment of the function of reducing income inequality by the personal income tax in Ukraine and ways to increase its redistributive properties. Methods. The redistributive properties of personal income tax were studied by determining the impact of the tax social benefit before and after its reform on the tax burden at different levels of income, which was calculated on the basis of effective personal income tax rates. The assessment of the fiscal consequences of the proposed reforms was carried out using information from the Pension Fund of Ukraine on the number of people receiving wages in a certain income range. Results. It was established that the flat personal income tax in Ukraine does not fulfill the function of reducing income inequality due to existing restrictions on the right to apply the tax social benefit, which cannot be used even by the recipients of the minimum wage. This creates the problem of a high tax burden on people with low incomes. In order to increase the impact of the tax on income redistribution, the feasibility of introducing in Ukraine a differentiated tax social benefit for the taxpayer, as well as a tax social benefit for dependents (wife/husband and children) is substantiated. Another option for increasing the progression in personal income taxation was considered – the introduction of a low-progressive/progressive tax model in combination with the existing and differentiated tax social benefit. Conclusions. An assessment of the impact of the proposed personal income tax reforms on the tax burden at different levels of income, as well as their fiscal consequences, was carried out. Possible risks, as well as the procedure for reforming the tax, are substantiated.
{"title":"Scenarios of personal income tax reform in the context of reducing income inequality in Ukraine","authors":"A. Sokolovska, L. Rainova","doi":"10.33763/finukr2023.04.007","DOIUrl":"https://doi.org/10.33763/finukr2023.04.007","url":null,"abstract":"Introduction. The aggravation of the problem of inequality and poverty in the conditions of Russia’s full-scale war against Ukraine determines giving priority to its mitigation in the period of post-war reconstruction. At the same time, ensuring the reduction of income inequality in the period after the termination or abolition of martial law is expected to be achieved by using the redistributive role of taxes, primarily personal income tax. Problem Statement. Although a progressive income tax is considered to be one of the main tools for reducing inequality, a proportional personal income tax can also increase the progressivity of taxation through a well-designed mechanism of tax-exempt amount. The purpose of the article is to analyze the state of fulfillment of the function of reducing income inequality by the personal income tax in Ukraine and ways to increase its redistributive properties. Methods. The redistributive properties of personal income tax were studied by determining the impact of the tax social benefit before and after its reform on the tax burden at different levels of income, which was calculated on the basis of effective personal income tax rates. The assessment of the fiscal consequences of the proposed reforms was carried out using information from the Pension Fund of Ukraine on the number of people receiving wages in a certain income range. Results. It was established that the flat personal income tax in Ukraine does not fulfill the function of reducing income inequality due to existing restrictions on the right to apply the tax social benefit, which cannot be used even by the recipients of the minimum wage. This creates the problem of a high tax burden on people with low incomes. In order to increase the impact of the tax on income redistribution, the feasibility of introducing in Ukraine a differentiated tax social benefit for the taxpayer, as well as a tax social benefit for dependents (wife/husband and children) is substantiated. Another option for increasing the progression in personal income taxation was considered – the introduction of a low-progressive/progressive tax model in combination with the existing and differentiated tax social benefit. Conclusions. An assessment of the impact of the proposed personal income tax reforms on the tax burden at different levels of income, as well as their fiscal consequences, was carried out. Possible risks, as well as the procedure for reforming the tax, are substantiated.","PeriodicalId":209191,"journal":{"name":"Fìnansi Ukraïni","volume":"34 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125011748","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-04DOI: 10.33763/finukr2023.04.055
Olga Kuzminska
Introduction. The list of priority European integration measures in Ukraine envisages further harmonization of the national financial monitoring system with FATF international standards (recommendations). Therefore, it is important to analyze both the results of the assessment of the technical compliance of measures in the anti-legalization sphere of Ukraine with FATF recommendations, and their effectiveness. Problem Statement. Assessment of the degree of technical compliance of the prevention and countermeasures system in Ukraine with the FATF recommendations, and generalization of the results of the assessment of the compliance of the measures of the national financial monitoring system with the performance criteria presented in the MONEYVAL reports. Purpose. To systematize strong and weak characteristics of the technical compliance of measures of the national financial monitoring system with FATF recommendations, to investigate the compliance of the current practice of financial intelligence of Ukraine with the MONEYVAL efficiency criteria, as well as to conduct a comparative analysis of international experience in the anti-legalization field on the basis of assessment of the technical compliance of measures in the anti-legalization field with FATF international standards (recommendations) and the result characteristics of the effectiveness of these measures presented in the MONEYVAL reports. Methods. General scientific and special methods based on the dialectical approach are applied: induction, deduction, analysis, synthesis, grouping, comparison. Results. The article provides a comparative analysis of MONEYVAL reports on the technical compliance of measures of anti-legalization systems with FATF international standards in Ukraine, Lithuania, Poland, Cyprus, Albania, and Bulgaria, analyzes the compliance of measures of prevention and countermeasures systems of these countries with the efficiency criteria specified in MONEYVAL reports. MONEYVAL reporting information has been systematized according to the levels of assessments of technical compliance with FATF international standards of measures of prevention and countermeasures of the specified countries, and the levels of compliance with performance criteria in these countries. Conclusions. The results of the research can be used in the further harmonization with FATF international standards of national regulatory and legal acts, the organization of international cooperation and the exchange of experience between national financial intelligence services.
{"title":"Assessment of conformity of measures of the financial monitoring system of Ukraine with FATF international standards","authors":"Olga Kuzminska","doi":"10.33763/finukr2023.04.055","DOIUrl":"https://doi.org/10.33763/finukr2023.04.055","url":null,"abstract":"Introduction. The list of priority European integration measures in Ukraine envisages further harmonization of the national financial monitoring system with FATF international standards (recommendations). Therefore, it is important to analyze both the results of the assessment of the technical compliance of measures in the anti-legalization sphere of Ukraine with FATF recommendations, and their effectiveness. Problem Statement. Assessment of the degree of technical compliance of the prevention and countermeasures system in Ukraine with the FATF recommendations, and generalization of the results of the assessment of the compliance of the measures of the national financial monitoring system with the performance criteria presented in the MONEYVAL reports. Purpose. To systematize strong and weak characteristics of the technical compliance of measures of the national financial monitoring system with FATF recommendations, to investigate the compliance of the current practice of financial intelligence of Ukraine with the MONEYVAL efficiency criteria, as well as to conduct a comparative analysis of international experience in the anti-legalization field on the basis of assessment of the technical compliance of measures in the anti-legalization field with FATF international standards (recommendations) and the result characteristics of the effectiveness of these measures presented in the MONEYVAL reports. Methods. General scientific and special methods based on the dialectical approach are applied: induction, deduction, analysis, synthesis, grouping, comparison. Results. The article provides a comparative analysis of MONEYVAL reports on the technical compliance of measures of anti-legalization systems with FATF international standards in Ukraine, Lithuania, Poland, Cyprus, Albania, and Bulgaria, analyzes the compliance of measures of prevention and countermeasures systems of these countries with the efficiency criteria specified in MONEYVAL reports. MONEYVAL reporting information has been systematized according to the levels of assessments of technical compliance with FATF international standards of measures of prevention and countermeasures of the specified countries, and the levels of compliance with performance criteria in these countries. Conclusions. The results of the research can be used in the further harmonization with FATF international standards of national regulatory and legal acts, the organization of international cooperation and the exchange of experience between national financial intelligence services.","PeriodicalId":209191,"journal":{"name":"Fìnansi Ukraïni","volume":"112 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124259910","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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