STRUCTURAL ELEMENTS AND FACTORS OF FINANCIAL SYSTEMS SUSTAINABILITY

Abstract

Abstract. Global financial and economic crisis turned out to be a powerful trigger of structural
transformations in the national financial systems caused by banking universalization, implementation
of financial innovations in banking intermediation and introduction of new
standards of financial and banking regulation and supervision. Under such conditions the financial
system sustainability depends on its ability to resist and adopt to the impact of destabilizing
factors of different intensity in order to ensure the functional stability of structural elements
and accustom to new conditions of functioning. The gradual liberalization of financial and banking
supervision as well as the implication of further reforms facilitated the fundamental changes
in the practice of banking intermediation with innovative mechanisms of capital allocation increasing
the system dependence of financial markets. Transformations of banking business models
create preconditions for the revisions of functional relations inside the financial system

structure and consequently affect the established approaches of regulating and stabilizing of financial
sector.
Key words: sustainability and adaptivity of financial system, functional stability of financial
system elements, REPOs, quantitative easing, default credits.