Consequently, the state of the financial market and the trends observed there have
a significant impact on the process of fiscal and monetary policy development, as well
as on the instruments for their implementation. In particular, a strong market for
financial services with a large number of participants, effective regulation of their
activities and the level of economic security, a significant amount of capital in
circulation, a wide range of affordable and relevant financial products and services
allows the state to liberalize monetary policy: to lower the level of control over interest
rates , remove restrictions on operations with currency values, take measures to reduce
cash in circulation, since the infrastructure of a highly organized financial market
before volyt conduct cashless transactions necessary for the functioning of all sectors
of the economy amounts. At the same time, it will be rational to determine the list of
those financial products and services that are implemented on the financial market
within the VIP-segment and to set higher rates for taxing incomes received from them
by financial institutions in the framework of modernization of fiscal policy. The tax
policy instruments can align the price offers on alternative financial products and
services provided by different types of professional players in the financial services
markets and thereby promote fair competition between them, or vice versa - stimulate
or reduce the number of individual types of financial intermediaries at the state level.
presence in the financial segment depending on the needs of the national economy at a
specific time point.
The analysis offered above demonstrates that financial market and the entire
financial system in general determine the basis for a favourable and dynamic
development of the country’s economy. To fully utilize the opportunities of the
financial market so as to increase the efficiency of fiscal and monetary policy, some of
their vectors must also contain regulations that will help stabilize its condition and
enhance further development. For example, it would be advisable to reduce the tax rate
on income from deposits, which may create an incentive for the population and
business entities to transform temporarily free financial resources and savings into
deposits. Furthermore, it could be worth updating the regulation of exchange rates in
order to counteract the speculations of large banks in the interbank financial market
while trading currency. Reducing the tax burden on insurance companies will produce
a favourable effect on the insurance market, at the same time, credit unions should
retain the non-profit organisation status, which they constantly risk losing. Reducing
interest rates within the framework of monetary policy implementation will allow
professional participants in the financial market to attract new customers, increase their
profitability and economic security.
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