INSTITUTIONAL FRAMEWORK FOR MANAGING THE FINANCIAL SECURITY OF THE STATE

Abstract

The paper is devoted to the investigation of the theoretical and methodological foundations of institution-al framework as a critical element in managing the financial security of the state. Contemporary challenges, notably the full-scale invasion of Ukraine, highlight the necessity for a structured system of institutions capable of ensuring the stability of the financial sector and protecting the financial interests of society. The absence of a consensus-driven ap-proach to defining the essence and structure of institutional framework is underscored. The relevance of the study aris-es from the dependence of effective state financial security management on the harmonious interplay between formal and informal institutions, as well as their capacity to resist external challenges. The objective of the research is to elu-cidate the essence of institutional framework based on the principles of new institutionalism, to develop its architecton-ics, and to substantiate the role of threats within this concept. The original approach is proposed for the formation of a system of inclusive institutional framework, designed to promote the implementation of universal financial interests. The comprehensive architectonics of institutional framework has been developed, encompassing three subsystems: normative, organizational, and functional. The author offer own definition of institutional framework as a system of inclusive institutions that integrates formal and informal rules, bodies, and procedures, aimed at establishing and main-taining the necessary and sufficient conditions for the implementation of society’s universal financial interests and the proper development of the financial sector within the national economy. The study further explores institutional threats, such as corruption, shadow economy, and money laundering, which are interpreted as deviations within the institutions of normative, organizational, and functional framework. Prospects for future research lie in analyzing the effectiveness of institutional framework in managing financial security in Ukraine under the conditions of the full-scale invasion.