ECONOMIC PREREQUISITES FOR DEVELOPMENT OF FINANCIAL AND CREDIT SYSTEM IN UKRAINE: SOCIO-HUMANITARIAN DISCOURSE IN CONTEXT OF SOCIAL TRANSFORMATION
The topic of the present paper is a search for the functional methods of bank management in the period of political and social transformation of society. The objective of the research is substantiation of the necessity for the government to have its own banks in order to exercise its functions and...
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| Format: | Article |
| Language: | English |
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FINTECH Alliance LLC
2021-01-01
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| Series: | Фінансово-кредитна діяльність: проблеми теорії та практики |
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| Online Access: | https://fkd.net.ua/index.php/fkd/article/view/2904 |
| _version_ | 1797704029491429376 |
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| author | V. P. Yelagin V. V. Mamonova N. V. Luhovenko L. A. Voropai |
| author_facet | V. P. Yelagin V. V. Mamonova N. V. Luhovenko L. A. Voropai |
| author_sort | V. P. Yelagin |
| collection | DOAJ |
| description |
The topic of the present paper is a search for the functional methods of bank management in the period of political and social transformation of society. The objective of the research is substantiation of the necessity for the government to have its own banks in order to exercise its functions and provide guarantees of stability in the state under the unfavorable conditions of a conflict of interests when the state is both the ‘regulator of the financial services market’ and the ‘bank owner’.
The analysis conducted in the paper on the benefits and losses due to the state ownership of banks has shown: vulnerability of the Ukrainian banks to political pressure; lobbying for the interests of systemic commercial banks and their obtaining of preferences or special terms; excessive budget expenditures for capitalization of failing systemic banks.
The experience of developed economies has been researched with an analysis of shortcomings, mistakes and prospects of state-owned bank management in different countries; banking market regulation methods and tools have been systematized. The paper focuses on the measure of nationalization, which was applied by many advanced countries; the impact of nationalizing important systemic banks is grounded, with an emphasis on the decisive role of nationalization in the transition period. It has been determined that many of the factors leading to bank nationalization are closely related to the problems of government regulation of the banking sector.
A conclusion has been made that in many countries the mechanisms for corporate regulation of state- or community-owned property do not even exist or are underdeveloped, and therefore, the governments of these countries, having sufficient information and appropriately trained specialists, should be responsible for all the socio-economic processes in the state. These considerations should be translated into elaboration of a mechanism for corporate governance of strategic public property objects. A corporate governance reform involves creation of competent and independent supervisory boards that would minimize a possible impact of politicians and public officials on the operating activities of banks.
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| first_indexed | 2024-03-12T05:13:18Z |
| format | Article |
| id | doaj.art-ff68d9cdb33f45f99cda255b2212c589 |
| institution | Directory Open Access Journal |
| issn | 2306-4994 2310-8770 |
| language | English |
| last_indexed | 2024-03-12T05:13:18Z |
| publishDate | 2021-01-01 |
| publisher | FINTECH Alliance LLC |
| record_format | Article |
| series | Фінансово-кредитна діяльність: проблеми теорії та практики |
| spelling | doaj.art-ff68d9cdb33f45f99cda255b2212c5892023-09-03T08:26:53ZengFINTECH Alliance LLCФінансово-кредитна діяльність: проблеми теорії та практики2306-49942310-87702021-01-0113210.18371/fcaptp.v1i32.200829ECONOMIC PREREQUISITES FOR DEVELOPMENT OF FINANCIAL AND CREDIT SYSTEM IN UKRAINE: SOCIO-HUMANITARIAN DISCOURSE IN CONTEXT OF SOCIAL TRANSFORMATIONV. P. Yelagin0V. V. Mamonova1N. V. Luhovenko2L. A. Voropai3Doctor of Public Administration, Professor, Head of Social and Humanitarian Policy Department, Kharkiv Regional Institute of Public Administration of National Academy of Public Administration under the President of Ukraine (KRI NAPA),Doctor of Public Administration, Professor, Professor of Regional Development and Local Government Department Kharkiv Regional Institute of Public Administration of National Academy of Public Administration under the President of Ukraine (KRI NAPA)Ph. D. in Public Administration, Associate Professor, Associate Professor of Economic Theory and Finance Department, Kharkiv Regional Institute of Public Administration of National Academy of Public Administration under the President of Ukraine (KRI NAPA)Postgraduate of Political Science and Philosophy Department Kharkiv Regional Institute of Public Administration of National Academy of Public Administration under the President of Ukraine (KRI NAPA), The topic of the present paper is a search for the functional methods of bank management in the period of political and social transformation of society. The objective of the research is substantiation of the necessity for the government to have its own banks in order to exercise its functions and provide guarantees of stability in the state under the unfavorable conditions of a conflict of interests when the state is both the ‘regulator of the financial services market’ and the ‘bank owner’. The analysis conducted in the paper on the benefits and losses due to the state ownership of banks has shown: vulnerability of the Ukrainian banks to political pressure; lobbying for the interests of systemic commercial banks and their obtaining of preferences or special terms; excessive budget expenditures for capitalization of failing systemic banks. The experience of developed economies has been researched with an analysis of shortcomings, mistakes and prospects of state-owned bank management in different countries; banking market regulation methods and tools have been systematized. The paper focuses on the measure of nationalization, which was applied by many advanced countries; the impact of nationalizing important systemic banks is grounded, with an emphasis on the decisive role of nationalization in the transition period. It has been determined that many of the factors leading to bank nationalization are closely related to the problems of government regulation of the banking sector. A conclusion has been made that in many countries the mechanisms for corporate regulation of state- or community-owned property do not even exist or are underdeveloped, and therefore, the governments of these countries, having sufficient information and appropriately trained specialists, should be responsible for all the socio-economic processes in the state. These considerations should be translated into elaboration of a mechanism for corporate governance of strategic public property objects. A corporate governance reform involves creation of competent and independent supervisory boards that would minimize a possible impact of politicians and public officials on the operating activities of banks. https://fkd.net.ua/index.php/fkd/article/view/2904financial and credit systemnationalizationstate-owned bankbanking systemcorporate relationsinstruments of public policy |
| spellingShingle | V. P. Yelagin V. V. Mamonova N. V. Luhovenko L. A. Voropai ECONOMIC PREREQUISITES FOR DEVELOPMENT OF FINANCIAL AND CREDIT SYSTEM IN UKRAINE: SOCIO-HUMANITARIAN DISCOURSE IN CONTEXT OF SOCIAL TRANSFORMATION Фінансово-кредитна діяльність: проблеми теорії та практики financial and credit system nationalization state-owned bank banking system corporate relations instruments of public policy |
| title | ECONOMIC PREREQUISITES FOR DEVELOPMENT OF FINANCIAL AND CREDIT SYSTEM IN UKRAINE: SOCIO-HUMANITARIAN DISCOURSE IN CONTEXT OF SOCIAL TRANSFORMATION |
| title_full | ECONOMIC PREREQUISITES FOR DEVELOPMENT OF FINANCIAL AND CREDIT SYSTEM IN UKRAINE: SOCIO-HUMANITARIAN DISCOURSE IN CONTEXT OF SOCIAL TRANSFORMATION |
| title_fullStr | ECONOMIC PREREQUISITES FOR DEVELOPMENT OF FINANCIAL AND CREDIT SYSTEM IN UKRAINE: SOCIO-HUMANITARIAN DISCOURSE IN CONTEXT OF SOCIAL TRANSFORMATION |
| title_full_unstemmed | ECONOMIC PREREQUISITES FOR DEVELOPMENT OF FINANCIAL AND CREDIT SYSTEM IN UKRAINE: SOCIO-HUMANITARIAN DISCOURSE IN CONTEXT OF SOCIAL TRANSFORMATION |
| title_short | ECONOMIC PREREQUISITES FOR DEVELOPMENT OF FINANCIAL AND CREDIT SYSTEM IN UKRAINE: SOCIO-HUMANITARIAN DISCOURSE IN CONTEXT OF SOCIAL TRANSFORMATION |
| title_sort | economic prerequisites for development of financial and credit system in ukraine socio humanitarian discourse in context of social transformation |
| topic | financial and credit system nationalization state-owned bank banking system corporate relations instruments of public policy |
| url | https://fkd.net.ua/index.php/fkd/article/view/2904 |
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