Formation of the Financial Mechanism for Sustainable Development: The Investment Role of Financial Intermediaries

The financial mechanism is a combination of elements sensitive to current changes in the economy and social sphere, and a significant tool for implementing the state’s financial policy. Regulating socioeconomic processes and forming effective relationships between sectors of the economy, territories, and social groups to ensure maximum results in the functioning of the national economy are priority areas for development. A systemic study of the financial mechanism of sustainable development as an economic category requires consideration of its relationship with the evolution of the category of «sustainable development». The path to sustainable development involves harmonizing productive forces, preserving and gradually restoring the natural environment to meet the needs of all members of society, and ensuring a balance between nature’s potential and the growing needs of people. The achievement of sustainable development goals is determined by the financial policy of the State, which is aimed at developing the economy with consideration for environmental safety and high environmental quality. The implementation of these measures is based on a financial mechanism, the composition and structure of which are defined by economic development, ownership structure, and national-historical characteristics, while the effectiveness of its functioning in addressing sustainable development challenges is influenced by interaction with financial intermediaries. Ensuring the correspondence of the financial mechanism to the goals and principles of sustainable development is dictated by the demands of the time. The financial mechanism and its individual elements are aligned with the personal and public interests of citizens, creating the conditions for meeting their needs while ensuring high quality of the natural environment and the rational consumption of all types of resources. In the context of solving this problem, the further development of Ukraine’s financial market is particularly relevant based on the enhancement of regulatory mechanisms for its functioning; informing about the financial status of participants; monitoring by the State and its specialized institutions; strengthening the role of financial intermediation; introducing new, more attractive and progressive types of services; bringing the domestic financial market in line with global standards.