Comparison of the Structure, Regulation and Institutional Environment of the Financial Markets of Ukraine and the United States

Abstract

In this article, the authors of the proposed study conduct a fundamental analysis of the financial markets of Ukraine and the United States. This includes: a study of the structure of the proposed financial markets, the regulatory framework that sets the framework for the existence of these systems, and the institutional environment of both countries. The United States is one of the most developed countries in the world with a strong economy and a democratic form of government. Ukraine is a relatively young country that is growing and developing, overcoming constant challenges, and which has problems and potential in the economic sector. Based on the bipolarity of the proposed countries and the initially different conditions of existence, the author of the article aims to explore and highlight the key differences and similarities in the operation of the financial markets of the United States and Ukraine, as well as to form an assessment of their importance for the stability and development of the economy. To achieve this goal, the authors of the study use the following methods: analytical and institutional analysis. The analytical method was used to study the structural components of financial markets and regulatory mechanisms. The second institutional analysis helped in forming an assessment of the impact of various financial institutions on overall financial stability. In conclusion, the author finds that the Ukrainian financial market is bank-oriented, with limited development of other financial segments, which in turn complicates access to capital and makes it difficult to be dependent on the banking system. In contrast, the U.S. financial market is characterized by significant depth and liquidity. This opens up opportunities for the opening and use of many financial instruments, as well as a high level of capital raising. Thus, we can see that the regulatory environment of the countries studied differs significantly: in the United States, it is more mature and effective, while in Ukraine it needs to be further developed and improved. But both countries equally face challenges related to regulation and the institutional environment that can be addressed by government agencies and financial institutions.