Solving modern problems in financial flow management of enterprises: a system approach in new economy realities

Abstract

Enterprises, banks and other financial institutes have always been run together in one system. Each subject plays its own role in the market stability. Low level of solvency of one enterprise or bank causes decrease in the general economic growth. In order to keep sufficient level of stability, and, in the future, create conditions for higher profitability, there must be a high-quality financial flow management system. In some countries, a system based on plenty of indexes is used, which may characterize the quality of a company financial management through capital and liquidity. The survey, which was held in 48 large foreign companies, aimed to determine three main methods of financial flow management which can be considered as the most effective ones. According to the survey results, companies consider using internal stress- testing and Basel Committee advanced approaches based on capital and liquidity as elements of a general financial flow management system. But according to the European and American research, capital and liquidity are not the best risk buffers nowadays. The current aspects of domestic financial flow management of economic entities have been analyzed in the article. According to the results of the study, in order to prevent such a situation in the future, enhanced use of insurance services has been proposed. In addition, the dynamics of the amount of the gross profit of Ukrainian enterprises and the volume of the bank legal entities' credit portfolio have been analyzed. The results of the analysis proved the characteristics of the general dynamics of relatively high level of low-quality credits in Ukraine and necessity for solving the problem of ineffective system of financial flow management at enterprises.