Bìznes Inform (Jun 2022)
Transformation of the Financial Sector: Factors, Forms, Directions
Abstract
The decisive tendency of recent decades has been the rapid growth of the volume of financial business. Obviously this new round of development is formed under the influence of certain factors, is implemented in various forms and directions. In search of the optimal correlation between these basic components of the strategy for the development of the fiance sector, they are transformed, complicated and acquire a new meaning. The purpose of the article is to determine the priority directions for the development of domestic financial business on the basis of an in-depth understanding of the factors and forms of transformation changes in the financial sector. It is determined that speaking of transformation such properties as evolution, complexity, purposefulness, maturity, acyclicity, and additiveness are appropriate. It is noted that transformation processes should be proactive, have medium- and long-term planning horizons and dynamically implement inevitable transformations, choosing the right vector of such changes. The financial sector acts as an object of transformation. Based on this, it is imperative to understand the factors that lead to transformation and the goal of achieving the final result of transformation. It is proposed to systematize them into two groups: those that lead to the transformation of the financial sector, and the factors that accompany it. Emphasis is placed on the risk landscape of financial sector transformation, which is determined by the nature and form of structural, institutional, organizational, functional, and regulatory changes and is manifested in the differences between the set strategic goals and the actual result. Two key directions of transformation of the financial sector are highlighted: organizational and functional. The organizational transformation involves the transformation of the institutional structure of the financial sector and the organization of conduct of financial activities. The functional transformation involves rethinking the functions of the financial and banking sectors, their role, conceptions, and rules of regulation. It is substantiated that these directions precisely require modernization, updating and a closer definition of the relevant organizational and procedural forms of their implementation. Based on the results of the carried out generalization, promising directions for the transformation of the financial sector of Ukraine are identified.
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