FINANCIAL AND ECONOMIC REGULATION

VENTSKOVSKYY Dmytro Yu.

Contemporary challenges to financial security of Ukraine

Strengthening financial security is the fundamental national interest of Ukraine. Analysis of current scientific views on the effects of the global financial and economic crisis is provided and the problems of financial security of Ukraine in terms of post-crisis recovery are identified. Dangerous manifestation of mentioned is the outflow of financial resources from the real sector and their allocated at the sovereign debt market. The problem of low economic recovery is defined as a major threat to the financial security of the state. Inconsistent anti-crisis measures have negative impact to the status of financial security. Fiscal consolidation has led to lower economic growth. Moreover, the deep penetration of the financial crisis has been caused by financial deregulation, including liberalization of the capital account, and therefore the policy of ""easy” and ""cheap” money. Financial security challenges in Ukraine are generated in the internal and external environment. In particular: increased pressure on public finances in terms of low economic growth, deepening macro-financial imbalances, accumulation of debt concentration, restrictions on access to the international capital market, expanding channels and sources to transfer the crisis, increased negative impact of hidden unemployment. The ways of solving the current problems of financial security have been suggested. In particular: financial responsibility risks’ diversification; modernizing views on the source of the recession; debt growth potential coordination with international financial reputation; institutionalization of the banking sector refinancing tools; introduction of the modern model of the flexible exchange rate; modernization of the fiscal policy, propagation of holism principles in macroprudential supervision; upgrade of financial security institutional support.

Keywords: financial crisis, financial security, economic recovery.

JEL: F34, F52, G01

VENTSKOVSKYY D. Y. Contemporary challenges to financial security of Ukraine / D. Y. VENTSKOVSKYY // Фінанси України. - 2014. - № 3. - C. 37-50.