THE INSTITUTIONAL FRAMEWORK FOR FINANCIAL REGULATION

The research subject contains the set of problems in the area of institutional framework for system of financial regulation. The article purpose is to define the institutional framework for development of the system of financial regulation in order to increase the level of its efficiency according to prior directions of economic growth. The research methodology. In this investigation we use the set of scientific methods, such as structural and inclusive approach, logical deduction, comparable and factor analysis. Results. The institutional framework for system of financial regulation has been investigated. In the paper the role of government regulation in the institutional system has been justified. Approaches to improve the regulatory mechanism of financial policy have been defined. The article focuses on the problems of the efficient coordination between state financial institutions in question of providing fiscal and monetary policy. Also we investigated the determinants of economic growth in the medium and long term plan. The priority directions to improve the system of financial regulation have been determined. Scope of results. State financial policy and instruments of policy implementation. Conclusion. Institutional environment has huge impact on the economic growth. In order to increase the efficiency of public finance management government would provide institutional reforms. The state model of socio-economic development needs to contain innovative and social budget components, which would create opportunities to function the public finance system. Formation and implementation instruments and mechanisms of financial police could help to reach the macroeconomic stabilization and create conditions for future economic growth. In order to achieve progress in economics we ought to change the structure of government spending, including budget sector and to raise the quality of public institutions. Financial regulation has to improve the production factors and quality of human capital in order to stimulate the economy. In the article approaches to decrease the level of tax load on innovative and science products in post-crisis period are justified. Also investigates the opportunities to allocate budget recourses to support high technology economy pattern, including science, education, defense industry, medicine.