Investment activities of non-bank financial institutions: current and future development trajectory
Abstract
In light of Ukraine's significant financial needs for recovery, the investment flows from the traditional banking system are insufficient. Non-bank financial institutions (NBFIs) are becoming critically important for mobilizing long-term capital and specialized financing, transforming into essential pillars of the national reconstruction strategy.
Problem statement. NBFIs, with their diverse structures, have the potential for specialized financing. Their ability to accumulate long-term capital is crucial for rebuilding the national economy.
Unresolved aspects of the problem. It has been established that NBFIs account for 20% of Ukraine's financial assets but face risks from the state of war, low trust, limited access to long-term financing, and regulatory gaps.
Purpose of the article. The purpose of this article is to investigate the current and future development trajectory of NBFI investment activities in Ukraine and to formulate strategic recommendations for enhancing their contribution to economic recovery.
Presentation of the main material. To achieve this goal, analytical, systemic, and comparative approaches were used to assess current challenges, analyze legislative harmonization with the EU, optimize risks, and implement innovative financial instruments. It has been established that NBFIs account for 20% of Ukraine's financial assets but face risks from the state of war, low trust, limited access to long-term financing, and regulatory gaps. The study revealed that harmonization with EU legislation (MiFID II, Solvency II, IORP II, AMLD), optimization of investment portfolios considering dynamic risks (including ESG factors), and the introduction of innovative financial instruments (crowdfunding, green bonds, tokenization) and FinTech solutions are key determinants of their development.
Conclusions. The practical significance of the obtained results lies in the fact that the proposed recommendations will contribute to strengthening Ukraine's financial system, attracting international capital, increasing investor confidence, and ensuring sustainable economic recovery through the expansion of NBFI investment activities. The article substantiates the role of NBFIs as key drivers of Ukraine's post-war recovery and European integration, providing a comprehensive analysis of the interplay between regulatory, risk, and innovative aspects of their investment activities amid unprecedented challenges. Further research should focus on developing a nationwide strategy for the NBFI sector, including product diversification, prioritizing digital transformation, fostering strategic partnerships, investing in human capital, focusing on sustainable sectors, and blended finance mechanisms.
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