Market-financial mechanisms of institutional support for the economic development of the Republic of Crimea

Abstract

A strong system of banking services and a sufficient size of their loan portfolio in the region contribute to business development, reducing barriers for it when investing in new production facilities. Therefore, it is relevant and important to consider the functioning and dynamics of the financial and banking sector in any region. The Paul Romer model presented in the study explains the speed of technological change, including through sensitivity to the interest rate. The article presents a study on an urgent scientific problem related to the factors representing the dynamics of the "consumption" category in the Crimean region. It shows the following influencing elements on this process: the stabilization price policy, the policy of state support for increasing the welfare of citizens, the trends of increasing the regional gross product. These factors contribute to an increase in consumption, demand and savings, which, in turn, creates opportunities for the formation of the resource potential of loans and investments in new production opportunities. The growth rate of the average monthly nominal accrued salary is also growing. To track trends in the economic assessment of the financial activity of the region, a mapping of the business process for assessing the dynamics of financial activity of the Republic of Crimea for 2015-2021 was carried out (depending on the depreciation of fixed assets on the average interest rate on loans issued to business entities for a period of more than 3 years in the Republic of Crimea). Conclusions are drawn about the formation of rational tools in the financial sector for the development of an effective mechanism for balanced growth of the regional economic system.