IMPLEMENTATION OF FINANCIAL CONTROLLING MECHANISMS IN THE MANAGEMENT PROCESSES OF BANKS AND STOCK MARKET PARTICIPANTS

Abstract

Introduction. The modern financial system of Ukraine operates under conditions of structural imbalances, heightened uncertainty, and rapid digital transformation. These challenges significantly affect the effectiveness of management in key institutional participants of the financial market, particularly banks and stock market participant companies. Despite the growing importance of financial controlling as an integrated management tool, there remains a lack of comprehensive approaches that would ensure synchronization of controlling mechanisms across different financial institutions operating within a common market environment.

Purpose. The purpose of the article is to develop and substantiate conceptual foundations for the implementation of financial controlling mechanisms in the management processes of banks and stock market participant companies in Ukraine. The study aims to propose a theoretical and methodological framework that enhances coordination of planning, analysis, control, and risk management functions, taking into account inter-institutional interdependencies and the challenges of digital transformation.

Materials and methods. The methodological basis of the research includes general scientific methods such as theoretical generalization, system analysis, comparison, and grouping. A structural-functional approach was applied to examine the current state and institutional characteristics of the Ukrainian stock market. Empirical validation was conducted using correlation analysis to identify relationships between the level of controlling system development and key indicators of financial stability. The modelling method was employed to design a conceptual mechanism of financial controlling and to improve the approach to operational risk assessment, considering the impact of digitalization.

Results. The study resulted in the development of a conceptual model of a financial controlling mechanism integrating organizational, functional, and technological subsystems within a unified information and analytical platform. The proposed model enables the formation of common control loops for liquidity management, portfolio risk monitoring, compliance, and operational efficiency. Empirical findings demonstrate a statistically significant positive relationship between the development of controlling systems and indicators of financial independence, solvency, and performance of financial institutions. An adaptive approach to operational risk provisioning that incorporates the level of digitalization of business processes has been substantiated, confirming the practical applicability of the proposed framework.

Discussion. The findings highlight the importance of integrated financial controlling mechanisms in enhancing transparency, reducing systemic risks, and improving coordination among financial market participants. The proposed model contributes to overcoming fragmentation in management processes and supports the transition of the Ukrainian stock market towards a more efficient capital allocation system. Further research should focus on developing quantitative econometric models to assess macroeconomic impacts of integrated controlling, adapting the proposed mechanisms to regulatory frameworks, and exploring specialized controlling tools for digital financial assets and emerging fintech technologies, including distributed ledger systems and central bank digital currencies.