The notion and content of financial system in the context of financial law of Ukraine

The size of the public sector is an important tool in public governance. Public sector size may fuel both economic growth and political influence over the economy.
By compiling and processing data from different sources of public accounts the paper aims at mapping the development of key financial indicators for the Norwegian central government sector during the transition period from the mid 19th to the mid 20th century. The data enable us to give measures of the size of the public sector alone and compared to the overall economy.
It is found that the sector started its continuous growth before politicians deliberately started to increase the sector’s size of the total economy. The paper also finds that an increase of the public sector often, but not always, reflects political economy regimes. Persistent growth in public finances as a tool for economic policy making did not take place before the introduction of the social-democratic regime in 1935.
The paper also concludes that economic growth started before the growth in the public sector, suggesting that public sector growth might as well be a result of economic growth or vice versa.

Financial performance of a bank represents its financial condition for a certain period of time, either in relation to fund raising or fund allocation, which is usually observed for several indicators, such as capital adequacy, liquidity, and bank profitability. In banking industries, profitability is the most accurate indicator to measure bank performance. Instruments used to measure profitability are Return on Equity (ROE) and Return on Assets (ROA). In this study, the impact of banking risk is analyzed using the ratio of Non-Performing Loans (NPL), Net Interest Margin (NIM), the Loan-to-Deposit ratio (LDR), and the ratio of Operational Cost to Operational Income (OCOI/BOPO) on financial performance of regional development banks in Indonesia. The data used in this study were obtained from the annual reports disseminated on the website of each bank. The number of samples includes 26 Indonesian regional development banks for 2013–2015. The study includes 4 hypotheses for testing. The results show that simultaneously, NPL, NIM, LDR, and OBOI/BOPO are significant to ROA; while NPLs are significant and negatively affect ROA, NIM is significant and positively affects ROA, LDR is not significant and negatively affects ROA, and OCOI/BOPO is significant and negatively affects ROA. This means the banks should minimize the ratio of NPLs, LDR, and BOPO, as they have a negative influence on ROA. Conversely, banks should maximize the ratio of NIM since the latter has a positive effect on ROA.

Economic changes create a strong need for the reconsideration of the system of financial and budgetary knowledge and paradigms already created in developed countries regarding the possibility of their use in the countries with developing economies. In this article, the authors clarify that the process of formation of the efficient and mutually agreed budget policy with strategic tasks of the social and economical development of countries requires development of the budget strategy. Its essence is the dynamic realization of the system of goals, principles, directions, tasks of state authorities, co-ordination and adequacy of their long-term regulatory measures to internal and external changes in the economic environment and social transformations aimed at ensuring macroeconomic stability, accelerating economic growth and improving the well-being of the population. The principles of budget strategy development have been clearly defined: scientific substantiation; integrity; efficiency; systematic approach; adaptability; variability; interdependence; purposefulness; sociality; legitimacy. The share of government expenditures, budget deficit and public debt in the gross domestic product in the EU and Ukraine has been estimated. The priority directions of budget strategies in the conditions of economic transformations have been defined, in particular, regarding the increase of efficiency of public expenditures and establishment of restrictions on their level of growth; improvement of the mechanism for managing budget deficits, public debt and guarantees and reduction of their limits. The research has demonstrated a huge influence of the budget strategy on the social and economical processes and on the development of the social relations.