FUNCTIONAL APPROACH TO THE FINANCIAL AND CREDIT SUBSYSTEM IN THE CONTEXT OF DIGITAL TRANSFORMATION

Abstract

The article researches and substantiates the concept of financial and credit subsystem in the context of digitalization. The structure of the components of the financial and credit subsystem and the principles of its construction are analyzed. Complementarity means that different elements of the system reinforce each other through positive influence and are able to mitigate the negative influence if necessary. The consistency of the system implies that in the process of acquiring additions due to financial innovations, the elements of the system acquire such forms that allow the synergistic potential of the system to be realized. In the functional direction of the analysis of the financial and credit system, the basic functions are to overcome the problem of imperfect information ("market failures") and reduce the transaction costs of economic entities. According to the results of the analysis of scientific literature, the functions of the financial and credit system can also include making payments (exchange of value); pricing in financial markets (coll ecting and processing price information that helps coordinate decentralized decision-making in various sectors of the economy); risk hedging; distribution and transfer of resources from depositors to borrowers by placing economic resources in time, space and between industries; control and monitoring, which guarantees the profitable use of funds and the safety of investors' money; support of liquidity of capital markets and financial and credit institutions. Based on the functions of the financial and credit system, its role in ensuring economic development is defined as follows: promoting trade in financial resources by hedging and diversifying risks, placing financial resources in the most promising types of economic activity; corporate control for the most efficient use of financial resources; mobilization of savings and profitable use of relatively surplus funds; facilitating the exchange of goods and services by reducing the costs and risks of transactions; storage/investment of financial resources for profit with different degrees of risk; financing the costs of those economic entities that need additional financial resources; making payments and facilitating trade; risk management (economic and financial); providing information and advice. Analysis of the economic content of transformations of the functions of the FCC, which occur under the influence of financial innovations, provides an opportunity to determine the directions of regulation development, improvement of financial policy to ensure the completeness of the implementation of the stimulating potential of the financial and credit subsystem to ensure economic development.