NON-BANKING FINANCIAL INSTITUTION OF UKRAINE AS A SUBJECT OF MONETARY RELATIONS
Authors:   Donetsk State University of Internal Affairs, Buha Hanna 
Published: September 2021

The article emphasizes the unprecedented growth of the role and importance of monetary relations in the formation of the market component of society, by supplementing it – the financial market and financial services markets, non-bank financial institutions professionally engaged in large-scale financial transactions. In this regard, monetary relations in their interaction with legal norms give rise to financial legal relations, which simplifies and disciplines the understanding and perception of monetary relations as an object of financial and legal regulation. It is stated that the regulatory impact on monetary relations in the activities of non-bank financial latter in market relations goes beyond public finance, expanding due to corporate and private finance, their market component, and the volume of private and commercial monetary resources in such conditions are one of the parties to the financial and credit relations. The environment for the implementation of modern monetary policy is formed by many factors, which together create extremely difficult conditions and reduce the effectiveness of monetary policy in achieving its goals. However, the most significant is the spread of the global financial crisis, to overcome which Ukraine needs to improve the legal framework for monetary regulation and apply market mechanisms to regulate the credit system. From a legal point of view, it is important when considering monetary relations (especially the forms of their expression) to understand the substantial nature of the financial mechanism as a whole. It is not the institutions of the financial system such as commercial banks, insurance companies, pension funds, investment funds or other institutions that generate credit as such, but, on the contrary, the existence of monetary relations generates the relevant institutions. And this is not just a scholastic play on words or manipulation of scientific concepts, but a legal fact. Thus, despite the rather intensive formation, the non-banking financial sector has not yet become the main and convenient mechanism for providing the real sector of the economy with the necessary financial resources. They are going through the initial period of their formation, their development remains little dynamic, sometimes even chaotic, which is why it is important to further study their legal nature, activities, functions they perform in the economy of the state and so on. In order to minimize the risks that may result from the lack of stability, transparency and competitiveness of the non-banking financial sector, it is necessary to strengthen the institutional and financial capacity of bodies regulating the financial services market and create an effective system for preventing crimes committed by non-banking financial institutions. Public policy in the non-banking financial sector should be aimed at: creating a system of risk identification, monitoring and ongoing analysis of the financial services market in order to ensure opportunities to take precautions to ensure financial security; strengthening transparency and openness in the activities of financial institutions and the body that carries out state regulation and supervision of such institutions; increasing the solvency and financial stability of non-bank financial institutions; ensuring proper protection of consumers of non-banking financial services; preventing the use of non-bank financial institutions for unproductive withdrawal of capital abroad.