The article examines functioning of non-banking financial institutions (NBFIs) in Ukraine. The need to organize and systematize NBFIs, as well as to conduct an in-depth analysis of the financial instruments used by them to perform their functions, is becoming increasingly relevant. Despite the oversight of the National Bank of Ukraine (NBU), the complexity of ensuring effective control is growing due to the increasing number of market participants and the rapid development of the fintech sector. The aim of the research is to provide a comprehensive analysis and systematization of non-banking financial institutions in Ukraine based on legislative acts and current Ukrainian laws, as well as to explore the financial instruments they use in the modern financial environment. The methodological foundation of the research is a comprehensive approach that combines legal, economic, and systemic analysis. Theoretical and legal analysis, as well as content analysis of regulatory documents, was conducted on the basis of current Ukrainian legislation and acts of regulatory bodies, with the aim of systematizing the types of NBFIs and identifying the financial instruments. A statistical and economic analysis was applied to assess the actual role of NBFIs in the Ukrainian economy. The article presents a systematization of all types of NBFIs in Ukraine as defined in Ukrainian legislation, including: 1) insurance companies, intermediaries, brokers, and consultants; 2) leasing and factoring companies; 3) non-bank credit institutions, pawnshops, and credit unions; 4) asset management companies (AMCs), brokerage and dealer companies; 5) non-AMC pension funds; 6) non-AMC investment companies and funds; 7) rating agencies and trust (guarantee) companies; 8) financial intermediaries and consultants; 9) debt collection companies; 10) clearing institutions (non-bank financial market settlement centers); 11) payment institutions (providers of payment services); and 12) financial institutions licensed and registered by the NBU. Regulation of financial companies providing cryptocurrency (virtual asset) services remains unresolved. The article also provides examples of financial instruments used by specific types of NBFIs. It is argued that NBFIs use a broad range of financial instruments, revealing a contradiction between their theoretical potential and the actual state of the financial services market in Ukraine, as well as their limited impact on GDP formation.
Shіrіnyan et al. (Wed,) studied this question.