Strengthening Financial Security Through Renewal of Institutional Protection of Budgetary and Banking Components
DOI:
https://doi.org/10.58423/2786-6742/2025-10-379-392Keywords:
financial security, fiscal relations, fiscal rules, de-shadowing, budgetary security, development bank, banking securityAbstract
The article examines the theoretical foundations of strengthening the financial security of the state through the renewal of institutional support of the budget and banking components in order to ensure macro-financial stability. Attention is focused on the need to modernize the institutional framework for ensuring financial security due to the imperfection of regulatory and legal regulation, fragmented coordination between financial and state institutions, low level of adaptation to risks associated with external economic threats and internal imbalance of the financial system in conditions of martial law. It is emphasized that the institutional provision of financial security of the state comprehensively includes a system of state bodies, regulatory and legal mechanisms and procedures aimed at creating, preserving and protecting the financial and banking system of Ukraine from both internal and external threats. The impact of new challenges and threats to the macro-financial stability of Ukraine on changing the list of components of financial security, indicators of their measurement and threshold values is revealed. The main elements and tasks of institutional ensuring the financial security of the state are defined. The institutional provision of budget security is analyzed, approaches to its elemental renewal are proposed, and the advantages of introducing innovations to strengthen the financial security of the state are determined. Key functions and main current challenges for banking security in 2025 are identified. It has been proven that new challenges and threats to banking security contributed to the renewal of institutional provision of financial security. It is proposed to strengthen such an element as specialized structures to overcome market failures, due to the creation of a new financial institution – development bank. It is emphasized that development banks do not aim to maximize profits and are not obliged to pay dividends to private shareholders, which allows them to finance activities that bring long-term benefits to communities and the environment at favorable rates and in a financially justified manner. The system of state development banks of the EU is analyzed, the successful experience of their functioning in Germany and the countries of Central and Eastern Europe is given. It is substantiated that the systematic renewal of the institutional structure of the financial sector with an emphasis on synergy and balanced interaction of the budget and banking components is the key to increasing the financial security of Ukraine in the medium and long term.
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