Financial system of Ukraine

Lytvynenko, Olga (2015)


In recent years, in connection with the transition to a market economy there are many deep changes in the economy of Ukraine. The main changes are the elaboration due to refinement, and sometimes a change of priorities, incentives and factors for the development of society and the country. In the transition to market relations the role and importance of monetary and financial and credit levers up sharply. Development of the economy more depends on the rational construction of the financial system, received in the broad sense and is not reduced only to finance of the country. Each sector of the economy of any country is permeated with a network of financial relationships, and finances of each element are only interconnected the financial system as a whole. Each link of finance certain way affects the reproduction process has its inherent function to it. For example, finance companies service material production. With their participation, created the GDP, which is distributed within enterprises and sectors of the economy. Through the state`s budget mobilized resources in the main central fund of the state, and the redistribution of resources between sectors of the economy, economic regions, social groups of the population. Extra-budgetary special funds are strictly earmarked. Thus, the largest social Pension Fund of Ukraine raises funds for the payment of pensions to citizens of the country. Thus, each part of the financial system is a particular section of financial relations, in which the funds are generated and used money resources. And knowledge of the characteristics of the financial system and its functioning is necessary for full alignment in the economy of any country and the making certain economic decisions.