Currently, in all regions of Republic of Belarus much attention is paid to improving the functioning of agricultural enterprises. Due to the fact that their level of liquidity and profitability to a large extent becomes dependent on the current state of the state food market, its ability to meet the needs of legal entities and the population and the ability to purchase high-quality agricultural products have a great influence on agricultural export growth indicators and dependence countries from food imports. In view of this, the concepts of financial results and their role in the development of the activities of an agricultural enterprise are disclosed in this article. The relevance of the topic of this study is due to the fact that at this stage of the development of agriculture in the Republic of Belarus, not only a significant amount of state assistance to agricultural enterprises plays an important role, but also an increase in the efficiency of the agricultural enterprises themselves, an increase in their added value and their products.
The article discusses approaches to minimizing financial losses by diversifying financial risks, it is proposed to improve the mechanism for diversifying financial risks, which should consist of the following stages: 1) Formation by the financial and economic department of the subject (enterprise, bank, investment company, etc.) of the input data, depending on the type of activity, among which the most typical are: volumes and structure of credit resources, their price, borrowing terms, loan currency, volumes and structure of product exports and imports of goods, export and import currencies, duration of the production cycle, volumes and structure of securities portfolio, types of securities, profitability indicators, types and the level of expenses. 2) Determination of the types of financial risks faced by an economic entity, and its measurement for each type, as well as the level of losses suffered by an economic entity in previous periods, in order to assess the feasibility of diversifying financial risks. 3) Determination of the most effective diversification options for an economic entity by comparing the costs of implementing possible options and the resulting from diversification by reducing the level of risk. 4) Assessment of other options for minimizing losses from financial risks that the entity can apply and which can be grouped as follows: hedging risks, limiting and compensating risks. 5) Calculation of financial implications for an economic entity from the introduction of financial risk diversification To do this, it is necessary to compare the costs and the expected effect of diversification, that is, will the level of risk decrease, or what will be the maximum possible financial losses. Calculated on the basis of statistical data, the values of the coefficient of variation of deposit and lending rates, as well as the exchange rate of UAH to foreign currencies. A methodology for assessing the level of possible financial losses and the effectiveness of the process of diversifying financial risks is proposed. The introduction of a mechanism for diversifying financial risks will help reduce financial losses by economic entities, which in turn will improve the overall financial results of their activities.
The article considers the development of the credit market of Ukraine, its problems and ways to improve. The purpose of the study is to substantiate the theoretical foundations of the credit market and establish the current state of credit activity of banking institutions. Having studied the development of the credit market in the field of economic relations, where the object of operations is the capital provided under certain conditions. The object of the credit market is temporarily free capital in cash, and the subjects of this market are creditors and borrowers. Market functions of the credit market include the function of pricing, information and distribution. The credit market in Ukraine is regulated by the Constitution of Ukraine, the Law "On Banks and Banking", the Law "On the NBU". In recent years, banks in different countries are increasingly experiencing the problem of bank lending. This is especially true of the domestic banking system, in which the level of overdue debt has a steady upward trend in recent years. A large number of banks suffer from imperfect risk assessment and are forced to raise interest rates on loans, which, in turn, affect borrowers. Currently, loans are used to privatize government organizations and manage public debt. Ukraine has a multifaceted credit system, where borrowers and banks use their rights to obtain the most appropriate form of credit: continuous loans to borrowers and one-time loans that compensate for temporary gaps in payment turnover. The main problems of credit market development are imperfect legislation, distrust of borrowers, high interest rates on loans and others. Based on these shortcomings, only countries that face authorized institutions can solve these problems: reduce the discount rate of the NBU to the level of European countries (3–5%), thereby lowering interest rates on loans to commercial banks; include a regulatory framework for credit market supervision, European standards, interpretation of credit institutions, increasing requirements for banking licenses, introduction of a mandatory mechanism for all commercial banks in deposit guarantee funds for individuals, legislation to increase the authorized capital of commercial banks to UAH 250 million.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.