ASSESSMENT OF KEY MARKETS FOR INSTITUTIONAL INVESTORS IN UKRAINE IN THE CONTEXT OF WAR
##plugins.themes.bootstrap3.article.main##
##plugins.themes.bootstrap3.article.sidebar##
Abstract
The article is devoted to the assessment of key markets for institutional investors in Ukraine in the context of Russia's full-scale invasion. The purpose of this study is to assess the institutional investor market in Ukraine during the war. To achieve this goal, it is necessary to solve the following tasks: to study the legal status of an institutional investor in Ukraine and its types, to assess changes in the institutional investor market after the start of a full-scale invasion, to identify key risks that exist in the market now, and to provide proposals on the need to improve state regulation of the institutional investor market to protect citizen investors in times of war. The methodological basis of the study was formed by general scientific methods of cognition: the dialectical method of cognition of the phenomena of the surrounding reality and the comparative legal method for establishing the legal status of an institutional investor, methods of logic (analysis, synthesis, induction, deduction, analogy), economic analysis, absolute and comparative advantages and statistical methods for analysing the market of institutional investors and making proposals, mathematical methods for calculating the volume of the market of institutional investors. In accordance with the systemic and structural approach, the institutional investor market was assessed by each of the structural elements of this market. The authors propose to consider an institutional investor as a financial intermediary that attracts and accumulates funds of individual investors (consumers of financial services) and carries out investment activities in the interests of individual investors aimed at financing socially and economically important sectors of the economy for the state and society. The authors pay special attention to the concept of responsible business conduct, pointing out that today, socially responsible business conduct is extremely important for the activities of an institutional investor, which includes "responsible attraction (accumulation) of funds" and "responsible spending (investment) of investors' funds". The study found that the main markets for institutional investors in Ukraine – banking, insurance and private pensions – showed stability and a slight increase in key indicators, which is very positive for Ukraine today. However, in the long term, there are a number of risks that should be taken into account by the government when formulating the state policy on the activities of institutional investors in these markets to protect the interests of citizen investors. The article provides suggestions on the main areas of improvement of the legislation on the activities of institutional investors to minimise the risks of citizen investors.
How to Cite
##plugins.themes.bootstrap3.article.details##
investment activity, institutional investor, risk assessment, government regulation, banks, insurance companies, non-state pension funds
The banking sector earned 67.6 billion UAH in profit in the first half of 2023. Available at: https://bank.gov.ua/ua/news/all/bankivskiy-sektor-u-pershomu-pivrichchi-2023-roku-otrimav-676-mlrd-grn-pributku (accessed August 8, 2023). (in Ukrainian)
Borisov, L. (2022). Consumer confidence and real economic growth in the Eurozone. Baltic Journal of Economic Studies, vol. 8(3), pp. 7–13. DOI: https://doi.org/10.30525/2256-0742/2022-8-3-7-13
Why does the state not protect consumers in the life insurance market? Available at: https://www.epravda.com.ua/columns/2023/04/11/698971/ (accessed August 8, 2023). (in Ukrainian)
Information on the state and development of non-state pension provision in Ukraine for the period from 30.09.2021 to 30.09.2022. Available at: https://www.nssmc.gov.ua/wp-content/uploads/2023/02/npf_3_kv-2022.pdf (accessed August 8, 2023). (in Ukrainian)
Kobushko, I. M. (2011). Activities of institutional investors in the investment market of Ukraine. Investytsiyi: praktyka ta dosvid, vol. 23, pp. 9–10. (in Ukrainian)
Pohoretskyi, M., Serhieieva, D., & Toporetska, Z. (2019). The proof of the event of a financial resources fraud in the banking sector: problematic issues. Financial and Credit Activity: Problems of Theory and Practice, vol. 1(28), pp. 36–45. DOI: https://doi.org/10.18371/fcaptp.v1i28.163692
Banking sector review for February 2023. Available at: https://bank.gov.ua/admin_uploads/article/Banking_Sector_Review_2023-02.pdf?v=4 (accessed August 8, 2023). (in Ukrainian)
Review of the non-banking financial sector March 2023. Available at: https://bank.gov.ua/admin_uploads/article/Nonbanking_Sector_Review_2023-03.pdf?v=4 (accessed August 8, 2023). (in Ukrainian)
Overview of the Ukrainian insurance market in the first half of 2022 Supervisory activities of on-site supervision in February – September 2022 and priority areas of supervision under martial law in Ukraine. Available at: https://bank.gov.ua/admin_uploads/article/%D0%9E%D0%B3%D0%BB%D1%8F%D0%B4_%D1%81%D1%82%D0%B0%D0%BD_%D1%81%D1%82%D1%80%D0%B0%D1%85%D0%BE%D0%B2%D0%BE%D0%B3%D0%BE_%D1%80%D0%B8%D0%BD%D0%BA%D1%83-%D0%BD%D0%B0%D0%B3%D0%BB%D1%8F%D0%B4_pr_2022-09-23.pdf?v=4 (accessed August 8, 2023). (in Ukrainian)
Insurance market overview for the first half of 2021. Available at: https://bank.gov.ua/admin_uploads/article/Insurance_market_review_first_half_2021_pr_2021-10-26.pdf?v=4 (accessed August 8, 2023). (in Ukrainian)
Register of non-state pension funds. Available at: https://www.nssmc.gov.ua/reiestr-nederzhavnykh-pensiinykh-fondiv/ (accessed August 8, 2023). (in Ukrainian)
Financial sector statistics. Available at: https://bank.gov.ua/ua/statistic/sector-financial (accessed August 8, 2023). (in Ukrainian)
Stroiko, T., Rekhteta, I., & Burkun, V. (2023). Innovation infrastructure as a foundation for business process development. Baltic Journal of Economic Studies, vol. 9(2), pp. 201–210. DOI: https://doi.org/10.30525/2256-0742/2023-9-2-201-210
Toporetska, Z. M. (2022). The role of social values in the state's choice of a model of gambling business management. Topical Issues of Legal and Patriotic Education of Higher Education Students of Higher Education Institutions with Specific Conditions of Study under Martial Law: Materials of the Scientific and Theoretical Conference Dedicated to the Day of Science and Memory of S. M. Lehusha (Kyiv, May 19, 2022). Kyiv: National Academy of Internal Affairs, 2022: 153–156. (іn Ukrainian).
Vazhynskyi, V. M. (2023). Social values in administrative law. Topical Issues of Legal Science in the Research of Young Scientists: Collection of Proceedings of the All-Ukrainian Scientific and Practical Conference on the Day of Science and the 30th Anniversary of the National Academy of Law Sciences of Ukraine (Kyiv, 18 May 2023) Odesa: Publishing House "Juridica", pp. 567–570. (in Ukrainian)
Verhun, V., Glukhova, D., & Humeniuk, Y. (2023). Social component in the modern national innovation system. Baltic Journal of Economic Studies, vol. 9(1), pp. 35–45. DOI: https://doi.org/10.30525/2256-0742/2023-9-1-35-45
Zvit Financial Stability Report June 2023. Available at: https://bank.gov.ua/admin_uploads/article/FSR_2023-H1.pdf?v=4 (accessed August 8, 2023). (in Ukrainian)
Report "Private Pension Provision in Ukraine: Assessment and Recommendations". USAID Financial Sector Transformation Project, July 2019. Available at: https://knpf.bank.gov.ua/dl/nederzhavne_pensiine_zabezpechennia_v_ukraini_otsinka_ta_rekomendatsii_Text.pdf (accessed August 8, 2023). (in Ukrainian)
This work is licensed under a Creative Commons Attribution 4.0 International License.