Functioning of the financial system of Ukraine in extreme conditions of martial law

Abstract

The study highlights the current features of the financial system of Ukraine. Description and justification of extreme conditions of martial law in the country is a general context for the presentation of the material. It is determined that currently the financial system of Ukraine operates in conditions of non-cyclical stress caused by the war. Smoothing its features and fluctuations requires significant volumes and rapid external financing.
 The consolidated actions of international financial organizations and countries in financing the defense and humanitarian budget needs of Ukraine are shown. It is emphasized that the Ukrainian financial system restart in wartime has become one of the main tasks of fiscal and monetary policy of the state to ensure financial and price stability.
 Priority tasks for the country's financial system during the war have been identified. They are: attracting the necessary additional resources for macro-financial stabilization, maintaining the purchasing power of the national currency “hryvnia”, curbing inflation, strengthening regulated money circulation. The agreed joint action of the Government and the National Bank of Ukraine in resolving these problems is emphasized.
 The changes in the financial sector of the economy functioning are shown in the analysis of activity of the Government of Ukraine, the Ministry of Finance and the National Bank of Ukraine in the context of: a) financing the army and defense needs; b) features of managing the public debt.
 The growing role of the state in the periods of cataclysms and war is raised. It is emphasized that the financial authority of the state is the authority of the state budget. It is proved that the current consolidation of public financial management bodies is combined with the consolidation of society and government as a whole.
 Post-war restructure of political and economic system of states is expected. Life safety and prudent financing the relevant costs will require reformatting previously familiar standards and institutions. Ukraine's role in the new format of international relations can be seen in the political, economic and military aspects.

Перспективи Післявоєнного Відновлення Фінансового Сектора України

“…Work [22] studied the impact of digital transformation on the banking industry during the post-war recovery of Ukraine. Author [23] analysed the problems of the functioning of the financial sector in regulatory and operational aspects. In paper [24] explored the features of the work of the NBU in the context of ensuring monetary stability during the war.…”

Business Models of Ukrainian Banks: the Impact of the Revolution of Dignity, the COVID–19 Pandemic, and Russia’s Military Aggression

“…The 2022 Russian invasion of Ukraine changed the situation in Ukraine's financial system. Pshik and Oleynyuk (2022) and Korneev (2022) described how the financial system functions in extreme conditions of martial law. Druhov and Druhova (2022) and Lobozynska, Skomorovych, and Vladychyn (2022) analyzed the main measures introduced by NBU when the Russian Federation invaded Ukraine.…”

Особливості Інфляції В Україні Під Час Воєнного Стану

“…Національний банк України швидко адаптував монетарну політику та політику обмінного курсу відповідно до еволюції економічних умов. Йому довелося збалансувати міркування щодо стабільності цін і обмінного курсу, фінансової стабільності, а також забезпечити достатність валютних резервів [1]. Основні підходи до економічних умов були наступними.…”