TRANSFORMATION OF UKRAINE'S FINANCIAL ASSETS IN THE CONTEXT OF INTEGRATION INTO THE GLOBAL FINANCIAL SYSTEM

Abstract

The article examines the main components of global financial assets and the dynamics of their changes in the international finance system in the context of the global transformation of financial architecture and financial interconnections that have occurred in recent decades. It was found that the volume of global assets in 2020 exceeds global GDP by more than 18 times. The assets under study have three almost equivalent components: assets of the real sector of the economy (non-financial corporations), financial sector assets (financial corporations), and financial system assets (households and governments). Each component in 2020 accounts for approximately one-third, which is about $500 trillion, equivalent to about six times the GDP. The author proves that the slow growth of each component observed in recent years is one of the obstacles to economic growth, which reduces the investment potential of territories in business development, consumption, innovation, and infrastructure development. The main components of financial assets inherent in the domestic financial system were analyzed. Differences in the volume concerning GDP and the structure of financial assets of Ukraine with global indicators were revealed. It was found that the ratio of domestic financial assets to GDP is less than one, and their structure does not correspond to global trends, which indicates a significant delay in the development of the domestic financial sector, but at the same time gives rise to optimistic expectations about the scale of future development. The reasons for the significant differences in the structure of financial assets in Ukraine and the leading countries in the world were analyzed. It was found that the growth of volumes and transformation of the structure of financial assets in Ukraine should be the result of post-war reconstruction and depends on how quickly the war in Ukraine ends, as well as on some reforms that are the key to Ukraine's movement towards the European economic and financial space.