Теоретичні та прикладні питання економіки. Збірник наукових праць.

Випуск 2 (49)

УДК 338:27

E520, E580, F430, G210

ORCID ID0000-0002-2343-6988

ORCID ID0000-0001-9670-7198

ORCID ID0000-0001-8649-9014

DOI https://doi.org/10.17721/tppe.2024.49.4

Nazarenko I.

PhD in Economics, Аssociate Рrofessor of the

Department of Finance, Accounting and Audit,

National Transport University, Kyiv

Gorobinska I.

PhD in Economics, Аssociate Рrofessor of the

Department of Finance, Accounting and Audit,

National Transport University, Kyiv

Nazarenko M.

PhD in Technical Sciences,

State Enterprise «State Road Transport

Research Institute», Kyiv

ACTIVATION OF THE BANKING SYSTEM'S ROLE IN STATE ECONOMIC DEVELOPMENT IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT

The article is concerned with studying and substantiating the role of the banking system in the economic development of the State in the context of sustainable development. It is determined that the banking system is the basis of the financial infrastructure, which ensures economic stability and promotes the efficient allocation of financial resources.

The banking system plays a key role in the economic development of a country, as it is the main link in the financial infrastructure that ensures the efficient flow of funds and stability of the economy. Banks accumulate financial resources of households and businesses, channeling them into investments, lending, supporting new projects and developing innovations, which stimulates economic growth and increases the country's competitiveness. The importance of the banking system is growing significantly in the face of modern challenges, including globalisation, which opens up new markets and opportunities, but also increases competition and requires adaptation to international financial standards. Economic instability caused by financial crises, pandemics, or geopolitical changes increases the role of banking institutions in ensuring financial stability, providing anti-crisis tools, and mitigating the economic consequences. Banks can effectively use monetary policy to support the economy during a recession or slowdown, reducing the risk of systemic crises. Therefore, in the context of the globalisation of the global financial system, there is an urgent need to find effective mechanisms that will allow banks to transform from traditional financial intermediaries into strategic participants in economic processes.

Keywords: bank, banking system, economic development of the state, sustainable development.

Full Text: PDF

DOI: https://doi.org/10.17721/tppe.2024.49.4