Basic principles of financial markets regulation and legal aspects of the legislative requirements


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Financial services market (FSM) is one of the effective mechanisms for ensuring the competitiveness of the country’s economy. It is precisely because of its ability to direct investment flows into the most attractive segments of the economy, and the FSM development can contribute to economic growth. Accordingly, today it is important to strengthen the financial services market in Ukraine. For this purpose, it is necessary to study the current state, identify problems and determine the main directions of its development in a timely manner.
The article investigates the financial services market in Ukraine, which is unstable, characterized by a significant outflow of financial resources, and underdeveloped financial intermediaries. FSM deterioration was also influenced by factors such as: financial crisis, sharp exchange rate fluctuations, military conflict, decline of the country’s economy, etc. Negative consequences of the events in the country were reflected even in a quite developed banking system. The focus is on the lack of financial culture in society, which is due to low deposit activity, high level of non-repayment of loans, lack of confidence in the new tools, and the introduction of new products in the financial services market. However, the development of the country as a whole is impossible without a strong financial services market.
It is noted that one of the important conditions for the FSM development and the effectiveness of macroeconomic tasks entrusted to it is the formation of an effective mechanism of the financial market state regulation. Such a mechanism should include both elements of state regulation and self-regulation of the financial services market. Accordingly, the formation of indicators aimed at assessing the impact of state regulation on the development of the financial services market becomes relevant.
The article examines the implementation of state regulation in financial services markets, analyzes the activity of the FSM state regulation in Ukraine and the control function effectiveness, considers the dynamics of the main indicators of the financial services markets development in Ukraine, and analyzes the level of financial services markets development.

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    • Figure 1. Comprehensive program measures
    • Figure 2. Dynamics of development indicators of the Ukrainian financial market for 2013–2016
    • Table 1. Implementation of the Comprehensive Program for the Development of the Financial Sector of Ukraine until 2020
    • Table 2. Application of instruments of the mechanism for state regulation of the financial services market in Ukraine for 2012–2016
    • Table 3. Analysis of the state regulation activity of the Ukrainian FSMs and the effectiveness of the control function implementation in 2013–2016
    • Table 4. Dynamics of main indicators of Ukrainian FSM development for 2012–2016
    • Table 5. Assessment of the Ukrainian financial market development in 2013–2016
    • Table 6. Dynamics of the development