ENSURING STABLE ECONOMIC DEVELOPMENT THROUGH THE EFFICIENT FUNCTIONING OF THE BANKING SECTOR

Authors

DOI:

https://doi.org/10.18371/fcaptp.v4i39.241220

Abstract

Abstract. The article explores ways to ensure stable economic development through the efficient functioning of the banking sector. The concept of stable development and efficiency of the banking system is revealed. The key principles of macroprudential and microprudential policy are analyzed and the main advantages of each of them are determined. The tools for implementing macroprudential policy to ensure sustainable economic development are described. The peculiarities of the application of rating assessment, the role of state-owned banks and investment banking as the most optimal measures to ensure economic development are outlined. Promising digital technologies in the banking system, which have a long-term strategic nature of development, are presented.

            It is confirmed that the development of the country’s economy depends on many factors of the internal organization of the microeconomic environment. Among the aspects of qualitatively increasing the competitiveness of the national economy, an important component is the emphasis on the policy of strengthening the efficiency of the market sector. The infrastructure of the market and financial sector consists of instruments of financial influence, as well as additional comprehensive measures aimed at creating a multi-channel system of various institutions and institutions, a structured real financial services sector given the overall stability of the banking system. The quality and efficiency of the financial sector can be determined, in particular, by the indicators of the peculiarities of the creation of market goods and services, which create an opportunity to create market relations at optimal prices.

We concluded that the last important factor for the prospect of sustainable economic development through the efficient functioning of the banking system is the use of digital technologies, because the world is rapidly transitioning from traditional to digital economy, so the banking system must be transformed into modern realities using current innovative technologies. .

Keywords: stable economic development, banking system, investment banking, rating assessment, macroprudential policy.

JEL Classification O16, O29, G21

Formulas: 0; fig.: 0; tabl.: 7; bibl.: 12.

Published

2021-09-10

How to Cite

Girchenko, T., Boiarko, I., Storozhenko, O., & Semeniuk, I. (2021). ENSURING STABLE ECONOMIC DEVELOPMENT THROUGH THE EFFICIENT FUNCTIONING OF THE BANKING SECTOR. Financial and Credit Activity: Problems of Theory and Practice, 4(39), 35–49. https://doi.org/10.18371/fcaptp.v4i39.241220

Issue

Section

The Modern banking. The problems and prospects of development