INTEREST INSTITUTIONS ON FINANCIAL SERVICES MARKET IN UKRAINE

Abstract

Abstract. The functioning of financial intermediation institutions, their qualitative and quantitative structure should ensure stable and effective development of the entire financial services market and the implementation of modern state economic policy.
The number of banking institutions in Ukraine over the past five years has been constantly decreasing, in 2017 compared to 2013 – almost 2 times, while the size of banks’ assets decreased slightly, by only 6 %. This indicates the concentration of Bank capital. Among the non-banking sector intermediaries, the number of financial companies increased (by 442 units), the number of trust companies did not change, but the number of other financial institutions in the market decreased. The tendency to reduce the number of key institutional intermediaries of contract type – insurance companies and non-state pension funds (NPFs) - is particularly noteworthy. The reasons for this are - the complexity of the overall macroeconomic environment, falling demand for insurance services, the deterioration of the welfare of the population.
In recent years, Ukraine has seen a significant increase in the total value of assets of non-Bank financial intermediaries-only in the amount of UAH 60.8 billion. This indicates the highest stability of the sphere of non-banking institutions of the financial services market to the negative impact of internal and external risks.
The effective development of the financial services market hinders the existence of financial institutions in the domestic market that do not fully perform the functions of financial intermediation and are oriented towards quick profits. As a consequence, institutions are a source of significant systemic risks, and thus a catalyst for financial crises. Improving the structure of the market and the high level of financial services affects the system of building effective relationships in three directions: between the institutions of financial intermediation and the real sector of the economy; between the institutions of financial intermediation in the implementation of their functions and tasks; between the institutions of financial intermediation and the state.
State regulation of financial intermediaries should be directed at overcoming the imbalance of the banking and nonbanking segments of the financial services market, the introduction of standards and transparent conditions for their functionin (it is necessary to clearly calculate how effective this will be to transfer of powers of the National Commission for state regulation of financial services markets to the National Bank of Ukraine and the National securities and stock market Commission).
The prospects for further research in the direction of the functioning of financial intermediation institutions we consider the justification of the directions of stimulation of activity on the basis of the introduction of leading technologies in the provision of financial services, their diversification and improvement of quality.