Background.The integration of finance and technology has become the basis for the activation of the emergence of new financial instruments and financial service offerers. On the one hand, the innovations that have emerged in the FinTech sector have enormous transformational power for financial systems and public administration, on the other hand, they create the emergence and implementation of new risks that require their timely identification and the creation of an adequate management system for them. The aim of the article is to determine the consequences of the impact of the development of technological innovations on financial systems in an intensification of globalization processes. Results.FinTech is an innovative technology used by financial institutions, public authorities, trade organizations to meet the needs of consumers of financial, administrative services and consumer goods in the context of the development of the consumption economy. At the same time, FinTech should also be seen as a system. The FinTech ecosystem includes: large technology companies, whose activities focus exclusively on financial services and beyond; companies that provide infrastructure or technology that facilitates financial service transactions; large, well-organized financial institutions; fast growing companies that focus on specific innovative technology or process. FinTech per­forms innovation, integration, transformation and social functions. Achievements of FinTech have shown their advantages in the financial services market in providing payment, investment, credit, insurance, risk management services and financial advisory services. The FinTech tools are machine learning, predictive analytics, block chain, smart contracts, biometrics, and application programming interfaces. The threats of FinTech’s development include share reduction of traditional financial intermediaries in the market, breaking financial stability, inadequate consumer risk taking, job cuts, and growing finan­cial volatility. The opportunities for FinTech’s development include enhancing financial inclusiveness and transparency of financial transactions, promoting the development of a competitive environment in the financial services market, and applying new methods of protection against fraud among employees and clients. Conclusion.As a result of the development of Fintech, traditional financial institutions will adapt to new conditions, while new entrants will join the financial ecosystem. As a consequence, the legal regulation of the financial sector should be transformed in order to prevent uncontrolled situations in the financial system. The development of Fintech requires balancing between security and decentralization, ensuring confidentiality and scalability.

Background.The number of liquidation processes shows that there is the absence of effective mechanisms that control the state of the bank both by regulatory authority of the market as well as by bank management. One of the most significant reasons for banks liquidation is a considerable market volatility. Consequently, there arises the immediate necessity to implement the mechanism analysis that would take into consideration high market volatility. Analysis of recent research and publications.Research analysis shows that in the scientific literature some aspects of the investigated problem still remain unsolved. In particular, such problems as interconnection of high market volatility with the change of indicator value of bank financial stability were not thoroughly investigated. The aim. Carry out thorough investigation of the criteria and their change concerning financial bank volatility. Make some suggestions as to how to use the defining mechanism of financial stability when the market is volatile. Materials and methods. There were used the following methods of investigation: monographical, synthesis, comparison. Ukrainian banks have recently been experiencing problems with their financial conditions. In most cases, one of the main reasons for this is market volatility, which directly influences bank financial stability. There is an urgent need for working out the mechanism, which will help define bank financial stability when the market is volatile. This mechanism must not consider traditional analysis models of bank financial stability any more. As they are based on the established performance benchmarks of bank activity. We offer to implement such term as “variable regulatory value”. The calculation principle of this term is as follows: based on the result of every index it is possible to identify the row of equal value range of the index. Value ranges are divided into equal parts, which gives a possibility to identify value ranges that have a critical risk level. Value ranges can also be divided into those that have the admissible risk level. The article shows the necessity of implementation of this mechanism and it contains the results of author’s personal developments. Conclusion. The provided developments of the mechanism of financial stability of the bank under volatile conditions give the possibility to control the banks state considering the dynamics and trend of market changes. In its turn, it results in the possibility to implement more effective system as to control the banks, and it helps bank management make more effective decisions so as not to lose financial stability.

Background.The devaluation of the Ukrainian hryvnia over the past three years has led to the introduction of a floating exchange rate and inflation targeting regime with the ability to intervene in the Ukrainian interbank foreign exchange market through currency interventions by the National Bank of Ukraine (NBU). The analysis of the effectiveness and consequences of currency interventions conducted by the NBU will allow the regulator to recommend methods for improving the state of the Ukrainian currency market and further development of financial markets and the economy of Ukraine. The analysis of recent studies and publications has shown that despite the existence of some scientific developments, the constant changes in the economic environment, the fundamental factors and conditions of the functioning of foreign exchange markets require state regulatory bodies and scientists to continuously analyze the situation in order to identify and implement the most effective strategy aimed at stabilizing the national currency of Ukraine and promoting economic development of the country. The aim of the article is to analyze the effectiveness of currency interventions of the National Bank of Ukraine in 2015-2017 as a fundamental factor affecting the actual dynamics of the exchange rates of the Ukrainian hryvnia and, consequently, on the Ukrainian economy, and, based on the analysis, propose to the National Bank of Ukraine ways to improve efficiency of the actions aimed at ensuring the stability of the Ukrainian hryvnia. Materials and methods.In the process of research, methods of statistical and correlation, macroeconomic and fundamental analysis, and generalization were used. Results.The currency interventions of the NBU for 2015-2017 are analyzed as an instrument for stabilizing the exchange rate of the Ukrainian hryvnia. The analysis of volumes and average rate of operations of the NBU on foreign currency purchase and sale in the interbank foreign exchange market of Ukraine is carried out. According to the results of this study, a package of proposals was developed, in particular: in order to smooth out seasonal fluctuations in the interbank foreign exchange market of Ukraine, it is necessary to consider the method of selling currency at the rate at which the currency was purchased (or at least with a margin of no more than 1 kopeck to cover organizational costs); in order to reduce the inflationary pressure on the national currency of Ukraine, the NBU may refuse to replenish international reserves through foreign exchange interventions; in order to develop the interbank foreign exchange market of Ukraine and its transition to self-balancing, the NBU should gradually reduce its own participation in the interbank foreign exchange market and activate market methods for smoothing short-term and seasonal imbalances in the structure of demand and supply of foreign currency; in order to timely inform the population and scientific circles about actions in the field of currency interventions, the NBU is recommended to elaborate and increase information and analytical publications on this subject, including statistics on foreign exchange interventions by requesting the best rate. The implementation of these proposals will contribute to stabilization of the national currency of Ukraine and economic development of the country. Conclusion. For the first time the currency interventions of the National Bank of Ukraine for 2015-2017 were analyzed and conclusions were drawn regarding causal relationships between currency interventions of the NBU and the dynamics of the exchange rate of the Ukrainian hryvnia; a number of recommendations aimed at stabilization of the national currency of Ukraine, development of the Ukrainian interbank foreign exchange market and promotion of economic development of the country have been developed. The presented conclusions and recommendations require further scientific research and discussion in the search for ways to eliminate seasonal imbalances in the structure of demand and supply on the Ukrainian interbank foreign exchange market, effective use of currency interventions by the National Bank of Ukraine, development of Ukrainian financial and, in particular, foreign exchange markets, which will contribute to the economic development of the country in the future.

Background.The rapid implementation of the information sphere in the modern economy raises important questions regarding the balance of protection of providers and consumers of financial services. Consequently, the notion of information security as an area of knowledge is rapidly becoming important due to the need to counter information threats, including to financial services consumers. Analysis of recentstudies and publications has shown that though information security has been researched, an outstanding scientific and practical problem regarding the understanding of the essence of information security of financial services consumers remains. The aim of the article is to formulate theoretical basis for the perception of the definition of information security of financial services consumers, investigate the economic essence of the following concepts: information security, informatization, information, information protection in view of information security of financial services consumers, to justify the postulates of information security of financial services consumers. Material and methods.In the process of research, methods of comparison, generalization, statistical analysis, and systematization were used. Results.Definition Information security of financial services consumers is formulated as an information security of the continuous operation of financial assets, taking into account the achievement of an acceptable level of profitability and maintaining the threshold level of risk by the stakeholders of such services. The postulates of information security of consumers of financial services: information security culture and information technologies as part of the postulates of protecting the rights and interests of consumers of financial services "united responsibility" and "formalization" are grounded. Conclusion.Unlike existing publications, the definition of information security of financial services consumers is formulated for the first time and the interpretation of its postulates such as information security and information technologies is given, which provides the possibility of scientific perception of practical aspects of the modern information sphere. The presented conceptual provisions require further scientific research in the field of formation of the information security culture of financial services consumers, simultaneously with the development of information technologies, which will provide information security for the continuous circulation of financial assets.

Background.The growth of the openness of the Ukrainian economy strengthens the regulatory function of the foreign exchange market, which is to establish a balance between supply and demand. In this regard, the issues related to the analysis of the state of equili­brium of the foreign exchange market, the identification of changes that occurred in its current situation in the last period are becoming currently important. The aim is to identify the features of establishing equilibrium in various segments of the foreign exchange market of Ukraine, study trends and the degree of balance of demand and supply in the foreign exchange market of Ukraine, as well as identify the causes of its destabilization. Materials and methods.Economic-statistical and economic-mathematical methods of analysis in the analysis of trends and structural changes and logical methods of analysis in determining the causative sequences were the methodological basis of the study . Results.Study on the state of the Ukrainian currency market for the period 2015–2017 indicates a high level of its balance by the end of 2017. Particularly the balance in the cash segment of the foreign exchange market of Ukraine has increased significantly. The main factor influencing the growth of the balance of the cash market was the devaluation of the hryvnia against the US dollar and the euro. Conclusion.Taking into account the fact that the reduction of the hryvnia exchange rate is not the main instrument for establishing equilibrium in the non-cash foreign exchange market, one can conclude that the subsequent policy of devaluation of the official exchange rate of hryvnia by the National Bank of Ukraine will lose its effectiveness and will not to help stabilize the Ukrainian currency market.

Background.The concept of related persons for the theory of accounting is not new, but now, with the purpose of accounting for controlled operations, it has a new meaning, and the list of related persons has become more extensive and detailed. Therefore, there is a need to consider the scientific approaches to the identification of operations with related parties. The aim of the article is the study of the criteria for identification of related persons in the account of controlled operations. Results.The definition of related persons in Ukrainian legislation and international practice is considered. The criteria for identification of related persons from the list of counteragents are: control over a legal person through ownership of a portion of corporate rights directly or through other companies; full or partial coincidence of executive or supervisory boards of enterprises; influence through family ties and relationships; amount of all loans, financial assistance received from one legal entity (individual) or under their guarantee. Calculations for the criteria application have been considered. Conclusion.The study of the concept of "related parties", general criteria for determining the connection between individuals and criteria approved by the Tax Code of Ukraine, made it possible to determine as precisely as possible the list of related persons for the account of controlled operations. This list is essential in the definition of tran­sactions that are recognized as controllable and helps to avoid situations with ambiguous interpretation of the results of financial and economic activities associated with pricing.

Background. Significant magnitude of the negative effects that accompany bank crisis lead to the neccessaty of assessing the stress sustainability of banking systems, which requires the construction of an effective system of indicators of their state of crisis. The aim is to systematize and classify the factors of the crisis state of the banking sector. Materials and methods. The article is based on domestic and foreign researches, conducted by the author, that study a broad spectrum of challgenges within the stability of banking systems. In the course of the study, methods of analogies and comparisons, analysis and synthesis, as well as the inductive method of scientific knowledge were used. Results. The result of the study was the author’s methodology for classifying factors and indicators of the state of crisis-relatedness in the banking sector. Conclusion. The practical application of the proposed classification of factors of crisis will allow them to be clearly identified in terms of origin, functional nature and depth of distribution, allowing to build a more effective mechanism for the neutralization of crisis phenomena in the banking sector.

Background.The government of the country is orienting the business to the production of competitive innovative products. A condition for the successful implementation of innovative intentions by business entities (state corporations, large industrial enterprises, small innovative firms, banks, etc.) considers the obligatory structuring of this process both in the resource field and in time. Moreover, the reduction of the implementation stages is also considered as an innovative feature of the process. It is very important in this process to create a system of incentives both market-based and through the instruments of state regulation. An analysis of recent research and publications showed that despite the existence of individual scientific studies, the topic in the context of incentives for innovation activity and the introduction of financial engineering has not been enough disclosed in scientific papers. The aim of the paper is to determine the methodological tools for institutional regulation of financial engineering based on a systematic approach. Material and methods.Dialectical, systemic and graphical modeling methods were used in the process of research. The content is based on the system-structural approach. Results.The theoretical aspects of financial engineering have been studied, the interpretation of the concept "financial engineering" has been presented and its components have been described. The essence of financial innovation and its tools have been considered. The main classification features of institutional tools for increasing the efficiency of financial engineering are presented, classification elements are substantiated. The main direct and indirect methods of stimulating innovation activity, financial incentives, problems of application of fiscal incentives of innovation activity and implementation of financial engineering are determined. The levers of influence on the efficiency of implementation and application of financial engineering, including customs and tax policies, leasing services, depreciation and open innovation, are analyzed, their application status and prospects for their development in Ukraine are described. Conclusion. In order to achieve maximum organizational and financial advantages for an innovative enterprise it is expedient to use different types of most suitable instruments. Within the policy of development and stimulation of innovation activity it is necessary to: form the most favorable mode of administration of innovative projects; ensuring the unconditional implementation of the current provisions for the support of innovative projects; introduce of state orders for innovative products; systemize information on legal and economic peculiarities of the implementation of innovation projects in a particular region and spread it among current and potential investors; strengthen tax incentives for innovation; ensure publicity and transparency of information concerning volumes and recipients of fiscal incentives for innovation.

Background.The key points of the interest rate policy of the Central bank in case of Ukraine and Poland are discussed. Coherence of discount rate, refinance rate of Central bank to macroeconomic indicators of Ukraine and Poland is analyzed. The main types of the Central bank’s interest rate policy and its cognitive correlation between the commercial banks’ interest rate policy are identified. Analysis of recent research and publications.A number of domestic works are devoted to the study of interest policy problem of both central and commercial banks: S.M. Lobozinskaya, S.V. Babich, N.S. Kukharuk, G.G. Chmeruk and foreign ones: Sirkka Hämäläinen, Grégory Claeys and Maria Demertzis, as well as official publications by the International Monetary Fund and the European Central Bank. However, not all aspects of interest policy in them are highlighted enough. The purpose of the article is to determine the main rules for the formation of interest policy and to provide recommendations on the construction of an optimal interest rate policy of the central bank, depending on the situation in economy, banking system and the main objectives of the central bank’s activities in a long run. Materials and methods.The publication is based on the legislation of Ukraine, normative documents of the National Bank of Ukraine, foreign publications, in particular materials of the National Bank of Poland. The used statistical materials are posted on the website of the National Bank of Ukraine, the State Statistics Service of Ukraine, and other open sources. Methods of the correlation – regression analysis, historical, logical appro­aches, methods of comparisons and graphical analysis are used in this work. Results.In different official documents the definition of the essence of the interest policy of the National Bank of Ukraine differs considerably, and the definition given in the Basic Principles can be interpreted in general terms ambiguously. Therefore, there is an expedient to study this issue more deeply, based on the statistical data on the interest policies of central banks of different countries, in particular, Ukraine and Poland. From the analysis of inflation, FX rate, interest rate trends it is possible to draw a number of conclusions. Firstly, the interest rate policy of the NBU varied over the different periods from the policy of "cheap" to the policy of "expensive" money and was not closely related to indicators of inflation and devaluation. Secondly, inflation was closely linked to the rate of devaluation and only for exchange rate stability provided a moderate inflation rate. According to the changes in the dynamics of interest rates, it is possible to distinguish three main forms of interest rate policy of the National Bank of Ukraine in the period under consideration. "Moderate" when the refinancing rate was approximately midway between the rates of interest and the rates for hryvnia resources. This is January 2005 – October 2009 and 2011. The policy of "cheap" money when the refinancing rate was at or below the rates of hryvnia deposits of banks. This is November 2009 – September 2010, 2012–2013 (except for individual periods). The policy of "expensive" money, when the refinancing rate was prevailing the rates of banking loans or was at about the same level. Conducted in the "acute phase" from September 2014 to April 2016. Conclusion. The conducted analysis showed a weak correlation interface between the trends of discount rate and basic macroeconomic indicators. It testifies the necessity of flexible correction of percent politics both by central and commercial banks in accordance with economic terms and purposes of activity. The decline of rate on certificates of deposit of NBU would diminish it’s percent expenses and simultaneously stimulate commercial banks lending to the economy and reducing rates on the current accounts of clients, inducing them to place money in more profitable time deposits.

Background.The need for global governance (GG) of world economy is cond­itioned by the instable turbulent state, that is the reason of global crisis and the urgent need to minimize the consequences. Analysis of recent research and publications. The actuality of clarification of the nature of subjects and objects of global governance is determined on the basis of analysis of publications of foreign and domestic experts. The aim of the article is the clarification of the paradigm of global governance in the methodological discourse of international political economy (IPE). Materials and methods.The materials of the research are the proceedings of domestic and foreign specialists. The following general scientific methods of research were used while preparing the article: historical, logical analysis, synthesis and abstraction. Results.It is proved that the ontological problems of globalization and its governance should be added to the subject-methodological discourse of IPE. The global economy is proposed to be considered as nonlinear, heterogeneous, interconnected, unstable system; at the heart of its development is the constant balancing of conflicting interests of its subjects. GG methodology was substantiated in the context of the nonlinear nature of globalization processes and the unbalanced format of global consensus that needs to have an appropriate governance concept based on the “soft”, coordinated by the world elite systemic influence on the world economic processes through the legitimate global institutions. Conclusion.The global governance should respond to the nature of global processes and should be based on the global consensus of the national elites.