FINANCIAL AND BANKING COMPONENTS OF THE ECONOMIC CRISIS: ORIGIN, NATURE AND TOOLS

Abstract

The article analyses existing approaches to the study of main factors of the world’s financial crisis origin. Modern ideas about the problem differ.It is revealed that foreign and domestic scientists interpret the world’s financial and banking crisis as the results of structural improvement of the world’s financial system, which is constantly under the influence with the world’s economy evolution. The world’s banking crisis is an integral component that is basic infrastructural chain of money-credit relations. Since in the environment of transformation improvements in the world’s economy this system accumulates different political, macroeconomic and institutional risks that cause the world’s financial crisis. The article emphasizes that the financial component of general economic crisis is caused, as a rule, by the crisis of a certain sector of the financial market: banking, currency or the external debt crisis. The most dangerous is the crisis of the banking system that promotes general economic crisis through ‘the domino effect’. It should be mentioned that all the most financial disasters happened in autumn – in the second half of October, when there was the high bank business activity season. The authors give global factors of main world’s crisis of the XXth and the beginning of the XXIth century. It has been suggested that the crisis of 2008-2009 demonstrated the inefficiency of existing methods of the financial sector government regulation in Ukraine. This suggestion begs the question of entered macroeconomic stability storing and banking system of Ukraine reinforcing. To use the tools of financial and banking services prudential regulation has been advised. It has been developed the financial mechanism of crisis management that includes five successively connected stages of a gradual seek for certain paces of the money supply growth which problem is an efficient interaction of monetary and fiscal tools. The article is aimed to suggest of a special crisis management bureau creation in the banking system, for instance, within NBU, where experienced and skilled financiers would work.