No abstract

The concept of financial stability of banks as a complex and multifaceted category, the content of which is constantly enriched, has been developed. Approaches to determining the financial stability and financial stability of banks, in particular, are considered. It is noted that modern operational, functional, institutional, technological features of banks cannot but affect the content of their financial stability and update the mechanisms for its ensuring. Emphasis is placed on the need for early adaptation of banking institutions to objective transformations of the economic environment through the integration of risk-oriented approach and the use of advanced methods of bank management in all its business processes. The level of financial stability of banks in Ukraine is monitored, for which the main volume indicators of their activity and the Bank Z-score indicator calculated by the World Bank are analyzed. The analysis of indicators of banks’ penetration into the economy shows that the development of the banking sector lags behind the needs of the real sector, so its financial stability is relative, although there are trends to strengthen it. The constant increase in the capital base of Ukrainian banks and their compliance with capital adequacy ratios is particularly positive. However, the quality of banks’ loan portfolios is unsatisfactory, which poses a threat to their financial stability, even given the large amounts of formed provisions for loan impairment. The dynamics of financial stability indicators calculated by the National Bank of Ukraine confirms the existence of prerequisites for its long-term provision, despite the difficult environmental conditions. The directions of monitoring of financial stability offered in the article allow diagnosing its deterioration in time to prevent critical consequences for the national economy.

The article examines the economic nature of the concept of "significant risk", which is proposed to be interpreted as a banking risk, which in its quantitative and qualitative parameters is characterized by a non-zero level of materiality, and its realization is guaranteed to reduce capital adequacy. The classification of the types of significant bank's risks has been improved. Regulatory, quantitative and qualitative methods of significant risks identification are considered. It is substantiated that this process should be based on the use of a differentiated approach, namely: identification of the significance of the bank's risks in terms of business lines and certain types of financial products, as well as provide a comprehensive approach to identifying significant risks and assessing their materiality. The relationship between the significant risks of the bank and its financial stability is illustrated by a logical-process scheme.

The article deals with the system of public investment projects management existing in Ukraine. The authors state its actual tasks concerning realization of EU-Ukraine Association Agreement. An estimation of quantitative parameters of public investment in terms of promotion of economic growth is carried out and its forms are determined. This made it possible to conclude on unwarranted plurality of the public investment projects' organizational forms in Ukraine which led to weak transparency and accountability in their realization. The article highlights the formation of the institutional framework for public management of public investment projectsthe legal base, responsible authority, methodological recommendations, and the creation of projects' pipeline. The authors analyze the activity of the recently set up Interdepartmental Commission on State Investment Projects. The weaknesses of public investment management in Ukraine are identified: imperfect procedure for initiating, appraisal and selecting public projects; lack of a single information system; insufficient control over the implementation of investment projects; lack of guarantees of their sufficient financing. The possibilities of the improvement of public investment management are considered in the light of the European integration orientation of the state development. Among them there are: setting of the adequate fiscal rules, clear definition of the PIP priorities, increasing the share of government investments that are managed as projects, setting of clear criteria and introducing of independent expertise of PIP' selection, strengthening institutional capacity of government agencies etc.

Rural areas occupy the major part of the territory of Ukraine, but they are characterized by low levels of socio-economic development, limitations in the amount and quality of public services, negative demographic trends. The aim of the article is to systematize modern means of financing rural development in Ukraine and to identify problems of their application by local governments. The authors proposed to improve the mechanism for financing rural development by active use its budgetary, credit and investment instruments. The prevalence of budgetary funding, whose limitation constrained rural development, was proven. Modern approaches to financing rural development were stated based on broadening community involvement in local budgeting, as well as in attracting investment resources. It has been found out that government subventions are the most powerful support instrument for rural development in the spheres of infrastructure, education, health care etc. The possibilities of financing rural development through the development budgets under financial decentralization have been investigated. It was noted that the use of participatory budgeting and other forms of project finance most clearly demonstrated real democratic transformations in local finance in Ukraine. The proposals for the use of PPP agreements, crowdfunding, and international funds’ grant programs for financing rural development were provided.