The Role of the Financial Sector in the Country’s Economy and Features of the Potential of Banking Sector of the National Economy

• Main Author: Chelombitko Tetiana V.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2019-10-01
• Series: Bìznes Inform
• Subjects: banking sector; economic potential; national economy; banking system; management
• Online Access: https://www.business-inform.net/export_pdf/business-inform-2019-10_0-pages-184_191.pdf
• ISSN: 2222-4459; 2311-116X

The article is aimed at analyzing the peculiarities of economic views of representatives of mercantilism, classical and neoclassical directions on the role of financial institutions in the economic system, as well as studying the teachings of representatives of the domestic economic thought on the essence of banking institutions and the role of banking potential in ensuring the development of the national economy. The evolution of economic views of both foreign and domestic scholars on the role of financial institutions in the country’s economic development processes is analyzed. Approaches to the interpretation of the content of the concepts of «branch of the national economy», «sector of the economy» and «financial sector» have been studied, which has made it possible to allocate banking activities in a separate sector of the economy, which is part of the financial sector. Approaches to the definition of the economic potential of the banking sector have been analyzed and the author’s interpretation of the concept has been given. It has been determined that the combination of individual components of economic potential determines the strategic potential of the banking sector, the management of which should be aimed at developing the potential capabilities of individual banks and ensuring the functioning of the entire national economy.