METHODOLOGICAL BASES FOR FINANCIAL INTERMEDIATION INNOVATIVE DEVELOPMENT

Abstract

The article examines the features of the formation, development and functioning of financial intermediation as a systemic inThe article examines the peculiarities of the financial intermediation formation, development and functioning as a systemic innovation. The authors substantiate the conditions for increasing the level of financial intermediation innovative characteristics in order to ensure financial stability and stimulate economic development. The main stages of financial intermediation theory, the prerequisites for the emergence and factors for its transformation into a system of financial innovation (the principles, functions, factors and conditions of institutionalization), as well as the main trends in the development of modern financial intermediation are described.
Financial intermediation is defined as a complex and dynamic economic phenomenon, the goal of which is to ensure financial institutions activities in the financial services market aimed at transforming their own and borrowed funds into financial assets, as well as the provision of other financial services in order to make a profit and ensure the sustainable functioning of the financial system of the country as a whole.
It is proved that due to the global financial markets integration, completion of their institutionalization and in particular because of the practical implementation of the theory of financial intermediation (with respect to the use of financial innovative technologies) it has acquired an accomplished form, and the financial sector has become an independent sector of the economy. In turn, financial innovations have contributed to large-scale changes in the structure and functioning of financial markets, which led to a positive impact on the development of the economy.
The main trends in the development of modern financial intermediation are the globalization of financial markets, the widespread use of derivative financial instruments, the emergence of new forms of hybrid instruments, innovative products and technologies, the universalization of financial intermediaries, the use of e-business systems and new computer techno­logies, the strengthening of non-bank financial institutions' roles etc..
In the modern economic system, the role of financial intermediation is that due to its functional and institutional structure, there is an expansion of channels for the movement of financial resources and the transfer of monetary impulses through the system of financial markets and institutions in the economy, which creates additional innovative incentives for its development.