CONCEPTUALIZATION OF KEY FEATURES OF UKRAINE’S FINANCIAL SYSTEM MODERNIZATION

Abstract

This article explores the theoretical and methodological aspects of the modernization of Ukraine’s financial system in the context of war and deglobalization. The authors analyze the impact of the war on the financial system, particularly on tax revenues and sources of funding. The issues of international aid and the necessity of developing domestic sources of financing are examined. Special attention is devoted to the analysis of recent research and publications on the functioning of the financial system, including the work of both foreign and Ukrainian scholars.
The authors propose an updated model of the financial system, grounded in the principles of purposefulness, consistency, and stochasticity. They highlight the need to enhance financial independence and develop internal funding mechanisms. Key aspects of modernization include rationalizing the structure of the financial system, fostering innovation, and pursuing integration through adaptive approaches.
The article outlines specific modernization mechanisms, such as: the structural decomposition of the financial system to support the development of capital markets and the formation of non-debt budgetary financing methods; the transformation of the financial system model from linear to non-linear, reflecting the complexity of interrelations and regulatory approaches; balancing the interests of the state and investors as a strategic objective in public policy formation; promoting innovation across all subsystems of the financial system, particularly through the adoption of digital technologies; and adapting the tax system to the specific features of the crypto-asset market.
The study underscores the urgent need to revise the financial paradigm and modernize the financial system to ensure the country’s sustainable development under new global and domestic challenges. The authors offer concrete directions for modernization, focusing on strengthening domestic sources of funding, reducing external dependence, and increasing the overall efficiency of the financial system.