Modelling the Performance of the Financial Market

Abstract

The intensification of globalization processes, the desire to integrate into the European financial and economic system, and the merger of national markets into one international financial system create preconditions for the emergence and intensification of processes and phenomena negatively affecting the level of development of the country’s financial system and the national financial market, where the mechanism of redistribution of capital between creditors and its suppliers functions on the basis of indicators of supply and demand. Effective organization of the financial market contributes to the financial system’s stability and meeting the economy’s needs in investment resources through the accumulation of temporarily free financial resources. The purpose of the research lies in analyzing the effectiveness of the financial market of Ukraine and identifying the impact of indicators of banking, insurance, and securities markets on its importance. The method of economic analysis, synthesis, comparison, analogies, classification, systematization, generalization and method of modelling the effectiveness of the financial market based on the construction of equations of dynamic programming has been used in the research. As for the results of the study of modeling the performance of the financial market, it has been established that the results of the banking, insurance and stock markets have a decisive influence on the analysed indicator. During 2017‒2020, the number of banks in Ukraine has significantly decreased (by 10,98 %), including the number of banks with foreign capital by 13,16 % and the volume of loans provided to customers (by 7,63 % in 2019 and 13,87 % in 2020 compared to 2018), which proves a decrease in customers’ confidence in the banking system. At the same time, the activity of the market of banking services is assessed as effective. As for the market of insurance services, in the period under review, a decrease in the number of insurance companies by 28,57 % is observed, and there is an instability of its functioning. The results of the activities of securities’ market also show instability, in particular, in 2020 the number of shares decreased by 88,23 % compared to their volume in 2017. It has been substantiated that the modelling changes in the performance indicator of the financial market should be carried out by establishing interdependencies between its structural components, and the dominant influence of managerial actions and decisions made regarding financial resources has been proved.