DOI: https://doi.org/10.18371/fcaptp.v4i27.154275

PROSPECTS OF IMPLEMENTATION OF EUROPEAN PRACTICE OF FINANCIAL IMBALANCES REGULATION IN UKRAINE

L. P. Sidelnykova, V. V. Bulyuk, О. S. Novosolova

Abstract


In the article it is noted that the trigger for the emergence of financial instability is the accumulation of financial imbalances the spread of which leads to increasing vulnerabilities in the financial system, violation of its stability and reduce the level of financial security. The interrelations between financial imbalances, financial stability, financial instability, financial vulnerability, financial security, financial crisis are outlined. The article is aimed at determining key indicators in assessing the level of existing financial imbalances and developing a set of measures to resolve disequilibrium in the domestic financial system, taking into account European practice. The domestic practice of financial imbalances disclosure was summarized which gave the opportunity to justify the conclusions on ineffectiveness of the methods used in Ukraine, that allow only identify already existing threats in the financial system. The experience of European countries is examined, where the practice of identification of potential signals of financial imbalances is widely used, in particular, to identify imbalances in the economies of the EU the macroeconomic imbalances procedure was approved. The main indicators in assessing the level of existing financial imbalances are determined. Some contradictory aspects of applying macroeconomic imbalances procedures within the EU are identified. It is noted that the necessity of providing financial stability is a priority task of the economic policy of each state, because a stable financial system has the ability to restrict and eliminate disparities through self-regulation mechanisms before they lead to a crisis. Priority directions of development of the state system of financial imbalances regulation in Ukraine are proposed: legislative provision of comprehensive and systematic monitoring of financial imbalances; preparing the necessary array of statistical information; delegating the authority of evaluating financial imbalances and developing measures for their regulation by a unit of the government institution.

Keywords


financial imbalances; financialisation; Мacroeconomic imbalances procedure; indicators of imbalances; government regulation.

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Copyright (c) 2018 L. P. Sidelnykova, V. V. Bulyuk, О. S. Novosolova

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ISSN (print) 2306-4994, ISSN (on-line) 2310-8770