UDC 336. 01 (477)

PhD in Economics, Associate Professor Коrneyev М.V.

SPECIFICITY OF FINANCIAL FLOWS MOVEMENTS IN THE FINANCE MARKET

The pouring of money capital is constantly going on in the economy of the country, which is formed in the process of general capital cycle. As it is known, the financial resources belong to private individuals, enterprises, national and international organizations, and the state. They are unevenly distributed among the economic sectors and different financial markets (insurance, money, stock) and, therefore, are constantly moving among them. Financial flows of the finance market are regulated by their participants and the state, which, in turn, takes measures on stabilization and development of the finance (insurance, investment) activity [1;3;4;5].

Insurants

For example, financial flows on the insurance market can be illustrated by the following scheme (fig.1).

Insurance mediators

reinsurers

Insurers

Financial market

(segments )

	Mortgage market

Fig. 1. Direction of financial flows movement on the insurance market [1;2]

The conditions causing the occurrence of financial flows in the state insurance market are: realization of insurance payments or payment of the insurance compensation between the subjects of the insurance market; realization of reinsurance operations; placement of free funds of insurers on the other market segments; making profit from the activities on the market by insurance companies [2].

Let us define the typical financial flows of the subjects of financial to the sector on the finance market (Fig. 2).

Fig. 2. Тhe system of financial flows of the the subjects of financial to the sector [1;2;4;5]

There are basic financial resources in activity of subjects of financial and real sectors [1;4]:

- charter fund (capital);

- additionally inlaid capital;

- operating surplus;

- retained earnings;

- depreciation decree;

- credits of banks;

- account payable of all prospects;

- income.

The effective movement of financial flows in the finance market is influenced by both the external and internal factors, from which the development of the subjects of this market depends, the quality of provision of finance services on this market, the future profit margin from the subjects of financial to the sector main and investment operations, the possibility of attraction of financial resources and their investment into earning assets etc [1;4;5].

Let us define the typical financial flows of the subjects of financial to the sector on the fund market (forming of such financial streams takes place mainly under act of the unorganized part of market; forming of financial streams a disbalance) (Fig. 3) [3;5].

Fig. 3. Direction of financial flows movement on the fund market [1;3;4;5]

For example, financial flows on the credit market (realization of accumulation, motion, distributing, redistribution of the borrowed capital between the spheres of economy) can be illustrated by the following scheme (fig.4) [4;5].

Fig. 4. Direction of financial flows movement on the credit market [1;4;5]

So, the finance market has its own specifics of financial flows movement, which is defined by the specifics of the financial resources, which are the objects of this market, as well as the subjects operating on the market, with their objectives and activities.

Literature:

1. Gridchina M.V. Finances (theoretical bases): Textbook / M.V. Gridchina, V.B. Zakhozhaj, L. L. Osipchuk and other – К, 2004. – 312 p.

2. Khavtur O.V. Financial streams of insurance companies in the conditions of transformation of economy of Ukraine: Abstract of Ph.D. dissertation / O.V. Khavtur. – Т., 2004 – 20 p.

3. Kubakh Т.G. Modern progress trends of equity market of Ukraine / Т.G. Kubakh // State and regions. – 2009. – №6. – P. 112-115

4. Oparin V.M. Finances (General theory)/ V.M. Oparin. – К., 2002. – 240 p.

5. Azarenkova G.M. Financial streams of economic agents: methodology and organization of management: Abstract of D. dissertation / G.M. Azarenkova. – Sumy, 2007 – 36 p.