The National Transport University Bulletin

Abstract

The article is devoted to a comprehensive study of theoretical and practical approaches to the analysis of the financial market’s basic institutional principles as a special socio-economic mechanism in non-equilibrium economic systems. In the study, the priority is the essential problems of economic relations associated with the development of financial market institutions, which are a set of certain norms and rules that limit the activities of market participants within the established framework of economic culture and behavior. Today in the unbalanced economic system of Ukraine the financial market continues to be at the initial stage of formation and development. Its pace is constrained by low levels of government, imperfect legislation, low levels of culture and mentality. The existing institutional preconditions form a large-scale shadow economy, determine the orientation of the domestic financial market to the predominance of speculative capital. Preference is given to financial assets from the standpoint of their profitability in the short term, rather than the long term, which confirms the objective need for institutional change. The object of the research is to find out the advantages and potential of realization of market financial institutions and institutional environment in the non-equilibrium economic system of Ukraine. Research methods. The article uses historical and logical methods (to identify patterns of evolution of the financial market doctrine, its role in social reproduction), abstract and concrete methods (to study the patterns of Ukraine’s economic system development). The method of abstraction is combined with institutional analysis of the financial market. The statistical method was also used to assess the level of confidence in the financial markets of foreign countries and Ukraine. Theories directly related to the problems of financial market institutionalization and institutional changes through the improvement of existing and newly created market institutions have been studied. It is noted that the emergence of new financial market institutions in the non-equilibrium economic system is accompanied by the adoption of many new licensing regulations. It complicates the further development of financial institutions, their non-compliance with the criteria of public utility, and, accordingly, creates institutional traps. The important role of sustainable development of the market economy, the existence of an informal institution of trust in the conclusion of financial contracts is clarified. Honesty and transparency of financial market participants are the dominant positive of investor confidence in the domestic market environment. Proposals for the establishment of an appropriate institutional organization of the financial market with transparent state regulation and control over the work of professional market participants are provided. 

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