State financial policy on the market of non-banking financial institutions

Abstract

Еxplores the transformation of financial systems and shifts in state financial policy regarding the regulation of the non-banking financial institutions (NBFIs) market amid rapid digitalization, economic structural changes, and military challenges. It analyzes the institutional modernization of Ukraine's financial sector, focusing on the outcomes of the "split" reform and the transfer of supervisory functions to the National Bank of Ukraine (NBU). The study examines the transition from formal compliance to risk-based, macroprudential supervision using innovative digital tools (SupTech) to systematically assess credit, liquidity, and operational risks, alongside the implementation of stress testing procedures. Based on statistical data from the Ukrainian NBFI sector for the period of 2020–2025, the research demonstrates that the market has undergone institutional cleansing and capital concentration. Despite a 35.7% decline in the number of active institutions (from 2,115 in 2020 to 1,360 in 2025), the total assets of the sector surged by 86.6%, growing from UAH 186 billion to UAH 347 billion. Positive structural dynamics are highlighted, including an increase in the NBFIs' share of the total financial sector from 12.4% to 18%, and a 13 percentage point growth in capitalization, reaching 31% by 2025. Furthermore, the paper outlines the strategic role of non-banking institutions (such as insurance, leasing, factoring, and credit companies) in post-war economic recovery, supporting small and medium-sized enterprises, and underwriting military and infrastructure risks. The practical value of the study lies in establishing a balanced financial framework that successfully coordinates the growth of FinTech ecosystems, consumer rights protection, and macro-financial stability.