Financial and credit systems: prospects for development

Lending in the banking system under the conditions of marital state

Yuliia Halushko — 2024-03-28

The banking sector is one of the most important components of the financial sector. The development of the credit services market is one of the indicators of the economic development of any country. Thanks to credit operations provided by banks, legal entities and individuals can attract additional monetary resources for their needs. Due to the corona crisis, banks around the world suffered certain losses. In 2022, Ukraine faced new challenges due to a military invasion that caused an economic crisis. However, the banking system of Ukraine continues to operate efficiently despite the risks and crisis situation.

The article examines the basis of the problem of bank lending. It was determined that with the increase in the volume of loans granted, the number of loans not returned by borrowers also increases, which in turn leads to a lack of monetary resources and, as a result, affects the level of interest rates on loans. It is indicated that one of the reasons for the increase in loan rates is the attraction of expensive resources. It is suggested that commercial banks of Ukraine control these risks, which will make it possible to ensure the quality of the credit portfolio. Also, a significant problem in the field of bank lending is defined as the lack of legal support for its implementation.

Exploring the Bookkeeping Practices of Family-owned Business: A Case Study of Carriaga Traders Mart

Cristine Mae Casas — 2024-03-28

Carriaga Traders Mart (CTM), an established retail business, has transitioned from a small grocery store to a thriving enterprise, offering a diverse array of affordable products. Their sustained success is attributed to meticulous bookkeeping practices. This study explores how a family-owned business can effectively implement bookkeeping practices to address unique bookkeeping challenges, offering valuable insights from CTM's experiences that benefit entrepreneurs, investors, and policymakers. Positive Accounting Theory (PAT) underpinned this investigation, shedding light on how economic, political, market factors, and contracting considerations influence bookkeeping practices, particularly in the context of CTM. The research employed a qualitative case study approach. Through extensive interviews with key financial management personnel, it gained comprehensive insights into the company's bookkeeping and financial practices. Participants included individuals directly involved in CTM's bookkeeping and financial management, meticulously selected based on their expertise in the field. The study's findings underscored CTM's meticulous bookkeeping practices, encompassing technology-driven sales recording, rigorous expense management, and a commitment to financial transparency. The study recommends that entrepreneurs adopt advanced accounting software and technology to enhance efficiency, implement risk mitigation strategies, and prioritize cross-functional personnel training to strengthen their financial practices. For financial managers, the study suggests investing in ongoing training, diversifying financial tools and methods, and emphasizing skill development to navigate the ever-evolving business landscape effectively. In conclusion, this research contributes to the discourse on bookkeeping practices, bridging theoretical insights from PAT with practical knowledge from CTM. It underscores the importance of a versatile and adaptive approach to bookkeeping practices in real-world business settings.

Role of blockchain technology in changing the structure of a country's monetary base and GDP

Olesia Suntsova — 2024-03-28

This article explores the role of blockchain technology in changing the structure of a country's monetary base. Specifically, it examines the potential benefits and risks of using blockchain in monetary policy, such as efficiency, transparency, and new opportunities for managing the financial system. The article highlights changes in approaches to monetary policy through the use of blockchain-based digital currencies, as well as discusses challenges that may arise in implementing this technology. The conclusions of this article may be valuable for government agencies, central banks, and researchers interested in the impact of blockchain technology on the financial sector. In recent years, the adoption of blockchain technology as an alternative to fiat currencies in various countries around the world has significantly expanded globally, as a significant number of business organizations have recognized the importance of all the advantages that blockchain technology provides. Previously, the focus was on cost control to remain competitive, but lately blockchain technologies have somewhat shifted the significance and monetary mass, influencing the structure of a certain country's monetary base. Based on recent research and publications, the article emphasizes the importance of understanding economic principles that govern the determination of the impacts of various economic and financial indicators on components of economic growth and predicting the consequences of such decisions. It references the seminal work of economists P. Romer, R. Lucas, R. Barro, I. Salla y Martin, and R. Levine, who laid the foundation for studying endogenous economic development. The purpose of this article is to investigate the practice of implementing blockchain technology in the financial support of various economic processes of economic entities and their impact on the structure of a country's monetary base. Thus, it has been identified that the influence of blockchain on the structure of the monetary base itself has received little attention. Despite blockchain being used as an alternative to components of the monetary base, thereby changing its structure within a certain country, most studies focus on literature reviews and provide information for practitioners and academic communities. Therefore, this article aims to bridge the gap by developing a model to identify distortions in the structure of the monetary base under the influence of blockchain. The effective use of blockchain is still being explored. As a result, the operations of many companies using blockchain technologies for payments are vulnerable to technical issues. Blockchain technology is utilized to address this problem and facilitate data exchange among relevant stakeholders. This document presents a benchmark for the impact of blockchain technology on the structure and mass of the monetary base for a specific country, integrating blockchain for sustainable money functioning with the integration of the Internet of Things and big data. Finally, potential benefits and limitations are analyzed during the implementation of this framework. Methods. Macroeconomic analysis, econometric analysis, trend analysis. Results. Determination of the level of influence of blockchain technologies on the change in the structure and volume of the monetary base of a certain country. The study casts doubt on classical economic doctrines by establishing a strong correlation between the distribution of components of the monetary base in its structure and the use of blockchain technology for payments for goods, labor, and services. It emphasizes that the economic growth of a country and the structure of its monetary base depend on the proportion of blockchain technology usage in that country. This research opens up possibilities for further studies in this interdisciplinary field.

Infrastructural support for the foreign economic activities management of enterprises of the Ukrainian woodworking industry

Iryna Hubarieva — 2024-03-28

Effective foreign economic activity contributes to the reproduction of the country's export potential, increasing the competitiveness of Ukrainian products of the woodworking sector on world markets, forming a rational structure of export and import, attracting foreign investments on mutually beneficial terms, ensuring the economic security of Ukraine.
The article examines the peculiarities of the realization of the export potential of Ukraine on the world market of furniture and wood products. An analytical assessment of the current state and competitiveness of Ukrainian woodworking products on foreign markets was carried out. On the basis of statistical analysis, the trends of Ukraine's export potential in the wood industry were revealed. An analysis of the international wood market and export prospects for Ukraine was performed. Strategic directions for improving the efficiency of Ukrainian wood exports have been determined.
The need for the formation of proper infrastructural support for the management of the foreign economic activities of woodworking industry enterprises based on the creation of a cluster structure as a form of cooperation between authorities, institutions of critical infrastructure (transport, logistics, innovation, information, industry, etc.), institutions and organizations of the business, scientific and educational environment is substantiated.
The practical significance of the obtained research results is that substantiated scientific and methodological provisions and recommendations can be used in the development of export strategies and mechanisms for their implementation by enterprises and various categories of stakeholders – participants in foreign economic activity, which would correspond to the modern conditions of their management, as well as in the finalization of the Strategy recovery and resilience of the national economy.

Financial stability of Ukraine's economy during the war and post-war periods: challenges and drivers of recovery

Maksym Zhytar — 2024-03-28

The article highlights the issues related to the challenges and drivers of recovery of the economy of Ukraine in the war and post-war periods. It is noted that since the beginning of the full-scale invasion of the Russian Federation on the territory of Ukraine, our country has lost significant human resources and witnessed the destruction of critical, industrial and social structures. The hostilities continue, but the belief in victory prompts scholars and practitioners to discuss the formats of reconstruction and modernization of the country after the war.

Directions of economic recovery are proposed, namely: reconstruction and restoration of war-damaged property and infrastructure; quick recovery of economic processes; return of refugees and internally displaced persons back to Ukraine and their inclusion in economic processes; creating the foundations for sustainable economic growth. It has been concluded that, in general, the recovery of the economy of Ukraine, which suffered from the war, can be a driver of the recovery of infrastructure and revival of the industrial sector, creation of new jobs and support of small and medium enterprises, reconstruction of the housing stock, restoration of social infrastructure and development of the sphere of social services, social rehabilitation of war victims and restoration of the natural environment.

Technologies of adaptive management as a mechanism for ensuring the stability of the development of companies

Nataliia Obukhova — 2024-03-28

In this article, the essence of technologies, characteristics and analysis of the phases of business process implementation in project activity under adaptive management are established. Project structuring, allocation of main tasks based on systems theory and development of a functional project management system as a whole become important in adaptive management. It is necessary to consider the activities of development companies comprehensively, relying on the organizational structure through the preparation of real plans, based on the knowledge of all specialists - executors of the works. The activities of companies are clearly structured into processes, which in turn are divided into functions. At the same time, all participants in any project activity are the main elements of the company's structure, as they ensure the practical implementation of the idea and concept. Present-day problems in the organization and management of development companies that arise under the conditions of the functioning of business processes are revealed.
Adaptive management is characterized by the choice of a financing strategy for the companies' activities. But it consists in ensuring, through certain actions, the closure of financing needs and the transition from the current capital structure to the future one. In this situation, one-part and parallel use of different funding sources and schemes occurs.
The authors indicated the formation of mechanisms for the stable functioning of companies through a process approach. The environment has an impact on the implementation of any project: it is necessary to be able to determine, calculate and take into account the impacts: economic, social, financial, managerial, technological, technical and execution terms, that is, the external and internal environment. Under certain conditions, each of these impacts can be critical for the project and lead to its liquidation.
The article notes that all information from all those responsible for business processes are formed into a single industry model that ensures stable functioning.
The authors attach an important place to the information system of management, accounting, analysis of project implementation, actualization of problems of operational plans and professionalism of specialists.
New approaches and improved methodology for ensuring the stability of the functioning of companies using adaptive management are proposed.