The Problem of the Stability of the Country’s Financial System in the Conditions of Economic Fluctuations on International Markets
Year: 2025
Type: article
Abstract: The article is devoted to the problems of financial system stability in conditions of economic fluctuations in international markets, namely procyclicality in the sphere of global financial and monetary processes. In the process of scientific research, the relationship between the quality of the financial policy of central banks and the stability of the country's financial environment was identified, and the main components of the financial mechanism at the macro level, which are used in the financial flow management system and are promising for implementation in the current legislation and institutional environment of the state, were identified. The role of macroprudential policy and the financial institutions that implement it in forming the infrastructure of the financial system has been updated, proposals have been formulated that allow ensuring the stability of systems in the financial sector, and carrying out a theoretical and methodological decomposition of management processes and components of the anti-crisis financial management system at the macro level. Scientific research and assessment of the achievements of financial scientists allowed us to form our own vision of the mechanism for managing the country's financial system, and especially its infrastructure, in the long term. Directions for improving the architecture of the financial system are proposed by building a system of counterbalances and forming mutual competition between financial markets, and the relationship between the credit and securities markets is especially highlighted. It was emphasized that all components of the system are interconnected, and the stability of financial processes in the country's economy, especially ensuring economic growth and development, depends on the harmonization of the tax sphere, public finances, innovations, and the financial environment. It is important to emphasize that innovations have been actualized, which, in our opinion, are the drivers of economic growth and development, changes in the qualitative structure of GDP, allow for the formation of reserves to withstand negative manifestations of procyclicality, reduce transaction costs, and increase labor productivity, demand for capital, and the quality of its structure.
Authors: Volodymyr Bodakovskyy, Olga Rudyk
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4413085508