Financial stability and its impact on national security state : organizational and legal aspects

Abstract

Purpose: This paper analyzes the financial stability, the reasons for the low level of financial stability and their impact on the national security of Ukraine. Design/Methodology/Approach: By observation, monitoring of causes and effects of financial stability. Findings: The study found that the main financial stability issues that affected national security in Ukraine were the ineffective regulatory legislation, the high level of distrust in the financial sector, the low growth rates of securities, the high level of credit rates. Also the fact that the financial sector is not capable of securing redistribution of funds in the Ukrainian economy, inefficient use of deposits by the banking sector, insufficient capital of the banking system, low dependence of the banking system on market activity, low level of ability of banks' own capital to cover losses. At the same time banks were exposed to the risk of insolvency of non-financial corporations with insufficient level of money market security and monetization in Ukraine. Practical Implications: A number of problems that negatively affect national security have been systematized. Measures have been developed that will contribute to the development of the financial sector. Originality/Value: With this article we show that the financial stability of the state, its financial dependency / independence can significantly affect national security, economic security, social security, scientific and technological, military and other types of securities.