THE ROLE OF GOVERNMENT REGULATOR'S MONETARY POLICY INSTRUMENTS ON THE STATE CREDIT MARKET

Abstract

Ensuring the stability of the banking system is carried out by regulating banking activities and supervising the activities of banks. To do this, the state needs to develop and implement laws governing the activities of banks, both central and commercial and state, as well as provisions governing the conduct of banks and which contribute to the reliable and efficient functioning of the banking system. According to the theory, the NBU can influence the money supply by changing reserve requirements (minimum reserves policy), refinancing rates (discount (accounting) and mortgage policy), as well as conducting open market operations, implementing monetary and deposit policies. Given the important role of the banking system in the economy and the high level of dependence of economic and general security of the state as a whole on the state of the banking system, it can be argued that the organization of government regulation and monetary policy instruments of the NBU are becoming extremely important. Therefore, the article on the instruments of monetary policy of the NBU in the credit market as a whole is quite relevant and important at present. Linking monetary policy to money market regulation means recognizing its impact not only on the money supply, as is often allowed in the literature, but also on the demand for money. And although the mechanism of regulatory influence on monetary demand is insufficiently developed and studied, this is not a reason to exclude it from the sphere of influence of monetary policy. This is especially important for countries with economies in transition, where the demand for money is underdeveloped and requires regulatory support.