The low level of coverage of the population by banking services is one of the relevant problem for the Ukrainian banking system and for the economy as a whole. The economic growth, the well-being of the population and the social climate in society depend from the ability of the population to the use of basic financial services. In the article the definition of financial inclusion of the population is considered and formed. The determinants of supply and demand, which are complemented by the determinants of social responsibility, are studied. This approach, together with the needs and accessibility of basic financial services, combines the protection of consumer rights, the development of proportional surveillance, the promotion of digital technology and the creation of financial literacy programs, taking into account national and sociological characteristics. The author’s proposed vision of the components of financial inclusion is related to well-being, awareness, accessibility, involvement and use. Their economic content, logical consistency and interconnectedness are disclosed. A set of analytical indicators has been formed, quantitatively characterizing them and integrated indexes have been constructed. On the basis of a composite consideration of all indices, a map of financial inclusion was constructed, which clearly shows that the population in Ukraine is not sufficiently oriented in the economy and financial sphere. The reasons for the low interest of the population in the use of banking services, among which the dominant ones are recognized: lack of funds, distrust of banking institutions, unacceptable pricing policy of banks. According to the statistics of the World Bank and the NBU, the coverage of the population of Ukraine with basic financial services is analyzed in comparison with other countries. It is determined that in order to increase the level of financial inclusion, it is necessary to ensure that the basic financial services of those part of the population of the country who do not have access to them are covered.

This study is devoted to assessing the level of individual segments interconnectedness within the financial market of Ukraine (FMU) and their dynamics in uncertain conditions. The methodology of the systematic approach is used to investigate the dynamic relationship between individual segments of the financial market of Ukraine, namely credit (deposit-credit) market, stock market (market of securities), government securities market, currency market, and interbank market. The study of financial market dynamics focuses on the description of the price indicators of individual market segments, which are monitored using time series analysis and statistical methods. The results of the time series assessment revealed the fractal characteristics of the Ukrainian financial market as a measure of sustainability (namely inertia). It is revealed that all segments of the financial market, except credit, are characterized by persistence. It is established that the development of market segments is uneven and is characterized as bifurcation. The credit segment is addicted to insider behavior and has the highest risk concentration. It is revealed that the foreign exchange market is still in crisis. The results of modeling the correlation relationships between market segments have shown that, in the presence of such relationships, they differ in the strength and nature of the interaction. They are volatile, unstable, and situational, dependent on external conditions. The credit market has a relationship with other segments, not significantly strong but stable. The results of the analysis indicate the dynamic development of segments within the Ukrainian financial market in the presence of interconnections between them. AcknowledgmentThe study was conducted within the framework of the State Budget of the Kyiv National Economic University named after Vadym Hetman on the topic “Innovative development of banking activities in the integrated financial environment” (state registration number 0117U001178).  

Risk-oriented management is defined as the scientific and methodological concept of banking management, aimed at identifying and assessing the totality of bank risks through special techniques and methods in order to create conditions for reliable and stable functioning of the bank, maximizing its own capital, meeting the needs of clients and partners of the bank, ensuring profitability of banking activity. The introduction of new principles for building a risk management system aims at increasing the level of corporate governance in banks, strengthening and more detailed requirements for the risk management process, strengthening the responsibility of the bank's management bodies for the risks taken and the financial stability of the bank. Creating an effective risk culture requires Boards and senior management to focus on the bank's written rules that clearly define risk management objectives and priorities and by taking a hard, honest look at any informal rules, protocols, the way workflows are performed, how decisions are made, and the link to the bank's compensation practices. The risk management system in the bank covers all its structural levels-from the top management of the bank (board and board) to the level at which the risk is directly taken or generated. A feature of the risk-oriented management of the bank is the creation of three lines of protection against risks. The degree of complexity of the banking risk management system should correspond to the degree of riskiness of the environment in which the bank operates. The policy on operational risk management also involves the development of technological schemes (maps) of products and services of the bank, which are maintained in a constantly updated state. Accordingly, the requirements for management of the main types of bank risks are defined. Improving banking risk management systems requires a transitional period for the implementation of specific requirements, as well as the need for additional staff costs and IT technology.

The purpose of the article is to study the economic essence and approaches to taxonomy and quantitative assessment of the bank’s operational risk, taking into account the evolution of standards defined by international institutions. The development of financial technologies, along with stochastic factors, require banks to adapt their own operations in response to new challenges or changes in existing threats affecting the operational sustainability of banking institutions. The statistics of the threatening impact of the frequency of events and cumulative losses from operational risk events are presented. It is noted that operational events can be quite diverse in nature, very unpredictable and threatening in general financial impact. This requires continuous improvement of the risk management system and timely validation of the bank’s operational risk assessment models. The article discloses the essence, sources, factors and operational events that are constantly evolving. Also the content of the model instrumentarium is disclosed. It is noted that the economic nature of operational risk has internal and external sources, several levels of their manifestation, covers all processes, products and systems of bank, including the human factor. The article generalizes taxonomy of operational risk according to various criteria. It is proved that it is the distribution of business lines that helps banks to more easily identify the types of operational risk events inherent in each individual bank, taking into account the peculiarities of their own business models. The multiplicity of operational risk events justifies the need for their adequate assessment and use of new methods for predicting and eliminating threats. The advantages of an actuarial approach are substantiated. Actuarial models can be used both at the level of «top – down» and the level of «bottom – up», have significant advantages in both methodological and practical aspects in calculating the amount of capital required to absorb risks from the implementation of risk events. The major shortcomings of the three main approaches proposed to the assessment of operational risk in Basel II (AMA, TSA, BIA) are highlighted. Updated by the Basel Committee, the standardized approach is a combination of best practices for assessing operational risk that can be applied in any bank, regardless of jurisdiction, size, and business model.

The modern financial market is a complex and dynamic mechanism that is being rapidly digitalized, new innovative technologies are emerging that change the nature of financial business and the relations between participants. All these phenomena expand the range of challenges and risks, and the threat of their implementation causes the need to change the paradigm of regulation of the financial market. A review of expert studies and conclusions showed that traditional prudential regulation mechanisms are not able to take into account the currrent changes and challenges. The article is aimed at forming a holistic view of determinants and challenges that lead to the need to change the paradigm of financial market regulation, as well as substantiation of the components of the new model of consolidated regulation and supervision. The necessity of forming a risk-oriented model of proportional regulation, focused on preventing growing threats and challenges of the digitalized financial market and its stabilization, is substantiated. It is specified that the evolution of approaches to regulation took place with different dynamics – from simple to synergistic, from adaptive to bifurcation-based, from limited to inclusive. The main determinants of the changes are asserted the following: financial and digital globalization, deregulation, development of information-communication technologies and innovations, digitalization of the market, volatility of market parameters, system risks. It is substantiated that the paradigm shift should take place on the principle of complementarity of traditional monetary policy, prudential and macroprudential regulation on the basis of consolidated supervision and the suptech (Supervisory Technologies). The basis of the new consolidated regulatory model should be a risk-oriented proportional approach that focuses on the volumes and levels of risks taken by different financial institutions. At that, it is expected that the proportionality of regulatory requirements depending on the types of instruments, operations and the level of risk taken will contribute to ensuring market stability, protecting consumers of financial services and stimulating the development of financial business. Prospect for further research is to substantiate the methods and instruments of a proportional risk-oriented regulation.