The financial market is considered an attribute of modern market economy. In the political and economic sense a market is determined by supply and demand for various financial resources. This is a market of buyers and sellers and a product that is sold and bought. But this product is special: it is money given to temporary or permanent use. O. D. Vasylyk considers that the financial market is an extremely complex structure with many participants – financial intermediaries, consumers of financial services (legal, individuals and state) who enter into economic relations, operating various financial instruments.
The characteristic feature of financial markets is that these relationships are realized at the stages of financial resources and funds distribution and redistribution of the ongoing expanded reproduction process. That is why financial markets should be viewed as a specific area of monetary relations, arising from the movement of the state financial funds, legal entities and individuals through specialized financial institutions.
The main objective of the financial market is to ensure the movement of resources from those having their surplus to those in need of investment. Thus, as a rule, they are directed from those who can not effectively use the funds to those who use them productively. It promotes not only greater efficiency and productivity of the economy in general, but also improves the economic well-being of each member of the society. Thus, for a modern market economy, financial market is the economic body center. As the financial market can judge the state of the economy, affecting the financial market, we can manage economic activity of the society [1, p. 389].
Despite the urgency of the problem, its severity in view of the world experience and general financial market trends, this field of research has not found enough development in the works of our scientists. However, these problems are studied by experts such as O. K. Malyutin, P. M. Leonenko, P. I. Ukhymenko, A. A. Ilyenko, O. D. Vasylyk, V. M. Sheludko and others. In their works there can be found references to foreign sources, sufficiently covering the experience of developed countries in this area.
The urgency of this research line is due to several reasons. The first is the need to study research problems that occur in the financial market of Ukraine. The second is the lack of science in the theoretical development of a legal nature defining the financial markets regulation. The third is the need for effective recommendations (in practical terms), concerning further development and establishment of the Ukrainian financial market .
The financial sector is one of the most important parts of the national economy.
Ukraine has already taken the first steps towards strategic analysis and forecasting of certain types of financial institutions and markets, including the banking system analysis, Stock Exchange, insurance market. According to O. K. Malyutin, further development of the economy is not possible without a mature, stable, reliable and efficient financial market of our country. Thus, the major goals of current economic development is the implementation of sound systematic reforms in the financial sector to provide additional sources of economic growth financing. This, in turn, requires the development and consistent implementation of long-term complex development strategy of Ukraine's financial sector, given current economic realities and strategic priorities of Ukraine in the globalization context of the world financial markets [2, p. 93].
In Ukraine we must implement a complete long-term financial sector development strategy and to coordinate various authorities in charge. The main goals of this strategy should be [3, p. 34]: creation of effective regulation and supervision of nonbank financial institutions; development of coordinated legislation and stable political and economic environment; development and coordination of the concept of creation and independent regulatory and supervisory authority of non-bank financial institutions (NBFIs) activity. This document should define the principles for the creation and operation of the regulatory and supervisory authority, its functions and mechanisms for their implementation; development and approval of the legal framework concept of the financial sector. This concept must include strategy development and adoption of several laws that regulate certain types of non-bank financial institutions and complement the existing legal framework for Stock Market and banking sector; development and adoption of a common strategy for the Ukrainian financial sector and its determination under long-term program aimed at creating favorable conditions for a non-banking financial sector development in general and certain types of non-bank financial institutions in particular.
Under the conditions of global integration of financial services, it is extremely important for every country to provide the competitive financial services market functioning. Lack of harmonized legislation and principles of effective regulation and non-bank financial institutions supervision is a serious problems of financial sector development in general. Gaps in modern non-bank financial institutions legislation and inadequate system of regulation and NBFIs supervision also hinders effective government policies implementation aimed at improving the social security system, including medical and pension reforms.
Selected bibliography:
1. Леоненко П. М., Юхименко П. І., Ільєнко А. А. та. ін. Теорія фінансів: [навчальний посібник] / За загальною ред. О.Д. Василика. – Київ: Центр навчальної літератури, 2009. – 480 с.
2. Малютін О. К. Оцінка фінансового сектору та його значення в економічному розвитку України // Фінанси України. – 2010. – №3. – С. 92-100.
3. Стратегія розвитку фінансового сектору України (матеріали Координаційної ради з питань політики фінансового сектору при Кабінеті Міністрів України). – К. : Видавничий дім «Козаки», 2008. – 256 с.