CHALLANGES OF IMPLEMENTATION THE INNOVATIONS IN THE NON-BANK FINANCIAL SECTOR OF UKRAINE

Keywords: non-bank financial sector, system innovation, financial innovation, regulatory innovation, stages of innovation development, diffusion of innovations, inclusiveness of financial services

Abstract

The article examines the current state and prospects for the introduction and implementation the innovations in the non-banking financial sector of Ukraine, which is considered as an independent systemic financial innovation in the domestic financial market. On the basis of analysis of the main trends of the non-banking financial sector, four main stages have been identified: 1991-1999 - the period of formation on the basis of the creation of new financial institutions and the use of new financial instruments, operations and technologies; 2000-2008 - the stage of extensive innovative development; 2009-2013 - post-crisis recovery; 2014 and to date - the transition to an intensive use of innovations.

The main challenges hampering the implementation of financial innovations include the following ones: insufficient level of capitalization of financial institutions; imperfect legislative and regulatory framework; low level of inclusiveness of financial services; lack of managerial mechanisms for the implementation of financial innovations; insufficient level of supervision of the non-bank financial institution activities in the field of the use of financial innovations.

The main types of perspective financial innovations are determined, and it is substantiated that the main directions of solving existing problems are the following: higher capital requirements, solvency and liquidity of financial institutions; ensuring efficient functioning of an extensive network of non-bank financial institutions and stimulating regional diffusion of financial innovations; increasing the level of corporate governance; improving the regulation systems of the non-bank financial institution activities in the field of using financial innovations based on the implementation the best European practices.

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Author Biographies

Svitlana Mishchenko, Banking University

Professor of the Department of Finance, Banking and Insurance

Dmytro Dorofeiev, Banking University

PhD student, Department of Finance, Banking and Insurance

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Published
2019-06-30
How to Cite
Mishchenko, S., & Dorofeiev, D. (2019). CHALLANGES OF IMPLEMENTATION THE INNOVATIONS IN THE NON-BANK FINANCIAL SECTOR OF UKRAINE. European Cooperation, 3(43), 20-34. https://doi.org/10.32070/ec.v3i43.51