STATE REGULATION OF ECONOMIC SECURITY OF BANKING INSTITUTIONS OF UKRAINE

Abstract

The state regulation of the financial services market, among which the chairman is the banking system, was carried out at all stages of its development, and, despite the change of the prevailing economic theories, the methods of this regulation remained constant. The negative changes that took place in the banking system of Ukraine have reduced the overall level of its economic security and led to the need to develop an effective mechanism of state regulation of the crisis management by the economic security of banking institutions of Ukraine. Economic constraints are the introduction of binding economic norms and norms, various obstacles that affect the volume of bank revenues. Such restrictions may include, for example, the establishment of rates of deductions to provisions for covering risks from active banking operations. Economic constraints are usually stimulating. By stimulating incomes and expenditures, the state seeks to direct the bank in the right direction of development. It is about applying tax breaks, subsidies, preferential prices for certain products, etc. Economic regulation by its nature is an indirect intervention in banking. Under this type of regulation, the state regulator does not interfere with the decision-making process by the management of a particular bank, but will be punished for non-compliance with the regulations. Penalties or sanctions for violation of the requirements of the regulator can be both administrative and economic, direct and indirect. Consequently, at the present stage, state regulation does not imply the full absorption of the economic sphere. However, the transformation of the main tasks and modes of state regulation of the banking sector takes place in parallel with the transformation of the institutional provision of state regulation of banking activities, which implies the existence of relevant economic institutions, which, based on the current regulatory framework and organizational structure in the state, use tools for effective regulation of the banking system.