Modernization of the Financial Architecture of Economic Entities in Ukraine under the Influence of Global Financial Transformations

Abstract

The article analyzes the financial architecture of economic entities in Ukraine. It is proved that the established financial architecture of Ukrainian economy can be viewed as a basis for the development and implementation of a more efficient financial system, which will become a reliable basis for the economy and will ensure the life of the population at the proper level. The functions of our State’s financial system reaffirm the importance of implementing an effective financial architecture that will be able to manage and ensure the normal functioning of all bodies and institutions, as well as provide for the necessary financial processes and operations. That is, the financial architecture of Ukraine is at the stage of formation and improvement. Upon the results of research it is identified that the most important issues of its development are: strengthening the finances of economic entities in order to increase motivation for efficient work, investment activities; establishing a financial mechanism for budgetary institutions, finding new sources of financial resources in the face of budget deficits; reform of the budget system, practical implementation of all provisions of the current budget legislation; cost-effective spending of budget funds, increased control over their targeted use; tax reform to ease tax pressures; reducing the number and size of contributions to public trust funds, separating them from the State budget; rational use of funds raised through public credit, strengthening confidence in government securities.

Keywords

• financial architecture
• financial system
• economic entities
• the enterprises’ assets
• macro-economic indicators