FINANCIAL SECTOR OF UKRAINE MESOREGULATION BASED ON THE CLUSTER DIVISION OF FINANCIAL INSTITUTIONS AND THE INFLUENCE OF CLUSTERS ON THE FUNCTIONING OF THE FINANCIAL MARKET
Abstract
This article presents a novel perspective on clustering banks and financial institutions within the evolving landscape of the financial sector. At its core, the study advocates for the application of cluster analysis as a foundational methodology to delineate distinct groups among banks and insurance companies. Subsequently, a meticulous examination ensues to comprehend the ramifications of these identified clusters on the broader financial sector. The overarching objective is to assign these groups a role within the realm of meso-prudential regulation. Employing regression models, the article delves into a comprehensive analysis of how specific clusters within the banking and insurance sectors exert influence on the overall efficiency of the financial system. This methodological approach not only dissects the intricate interplay within these sectors but also facilitates the identification of pivotal factors that directly impact the stability and effectiveness of the financial system. The advanced regression models crafted for scrutinizing the effects of individual clusters within the banking and insurance domains on sector efficiency have the potential to streamline the allocation of responsibilities between the central bank and the meso-prudential regulator, fostering a more rational distribution of regulatory functions. Moreover, the article serves as a compass for future research endeavors, elucidating unexplored avenues that promise a deeper comprehension of the financial sector's evolving dynamics. It underscores the necessity for continued exploration to gain insights into and adeptly manage the risks inherent in a sector undergoing transformative changes. The knowledge derived from such pursuits could prove instrumental in formulating strategic approaches to fortify the resilience and adaptability of the financial system, especially in the face of dynamic environmental factors. This research, therefore, emerges as a cornerstone, providing valuable insights for policymakers, regulators, and financial institutions navigating the intricate terrain of contemporary financial landscapes. Its significance lies not only in its findings but also in its potential to inform future strategies and policies, ensuring the stability and robustness of financial systems amid ongoing transformations.
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