FINANCIAL POTENTIAL OF ECONOMIC DEVELOPMENT: THEORETICAL ASPECT

Background.The article is devoted to the vital issue of the financial potential of development and is based on a generalization of works of national and international scientists, including the theory of economic development by J. A. Schumpeter on the specific characteristics of the development in a cyclical economy, identifying conditions, factors and objectives of the potential financial development. Review of scientific sources on this problem indicates that different approaches (to resource, targets, systemic-functional questions and factors) to the interpretation of the term "financial potential" that affected the perception for its nature, role and structuring components by the scientific community. The question of the potential financial development is often studied, but without taking into consideration the essential differences between the terms of growth, development and dynamic process. All mentioned above allows distinguishing the differences, conditions of formation and effective use, sales peculiarities and objectives of the financial potential development, according to the formulated purpose of the study. Results.Financial support for effective state regulation of economic development need development and implementation of prudent policies in the financial and credit sector in line with long-term goals of the state and subject to the financial potential of the country as a whole, individual entities and capability of its capacity. At various stages of the economic cycle, the financial potential can create preconditions and therefore can be seen as condition (foundations) to ensure balance, overcoming the negative impact of factors and changes of the internal and external environment, stabilization or ensuring equilibrium of the economy, formation processes or direct development. Conclusion.For the formation of social-economic development of the country, it is important to ensure effective management for potential`s financial development. Creation of conditions for reduction processes or directly development are to needs differentiate the formation process and the financial potential of development as an individual subject and the whole country for implementing innovations for production, financial, credit and institutional spheres.