Digital trust transmission channel as a new mechanism of financial stability under wartime shocks
Year: 2026
Type: article
Abstract: Introduction. In the context of wartime shocks, macroeconomic instability, and institutional transformations, traditional mechanisms for ensuring financial stability require substantial reconsideration. Alongside monetary, credit, and fiscal instruments, institutional factors related to economic agents’ trust in the state, economic expectations, and financial behavior are becoming increasingly important. Problem Statement. Despite the growing body of research on financial stability, digital governance, and behavioral finance, the role of the state’s digital infrastructure as an independent mechanism for maintaining financial stability through institutional trust formation and stabilization of economic expectations remains insufficiently explored. The purpose is to provide a theoretical substantiation of the concept of the digital trust transmission channel as a new mechanism for ensuring financial stability under wartime shocks and to develop a conceptual model of its functioning. Methods. The methodological basis of the study is an interdisciplinary approach combining the provisions of institutional economics, behavioral finance, expectation theory, and digital governance concepts. The research applies methods of theoretical generalization, logical and structural-functional analysis, systems approach, and conceptual modeling. Results. The study substantiates that the digitalization of public administration under wartime shocks can be considered an independent channel for maintaining financial stability through mechanisms of institutional trust formation, reduction of information asymmetry, and stabilization of economic expectations. The concept of the digital trust transmission channel is proposed, within which the state’s digital infrastructure influences the financial behavior of households and businesses through continuity of access to public services, reduction of information uncertainty, and acceleration of state decision implementation. Conclusions. The scientific novelty of the study lies in the development of an institutional-digital model of trust transmission as a new approach to explaining financial stability under extreme shocks. The practical significance of the results lies in the possibility of applying the proposed concept to the development of public digital transformation policies as an integral component of the state’s financial security.
Source: Fìnansi Ukraïni
Author: Volodymyr Velychko
Language: English
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7204782968