Communal Bank as an Investment Component of the Socio-Economic Development of Territorial Communities
Journal Title: Бізнес Інформ - Year 2015, Vol 11, Issue 0
Abstract
The article is concerned with substantiation of feasibility of establishing a communal bank, and determination of organizational-functional framework of its activities in the context of power decentralization in Ukraine. It has been determined that in Ukraine has been experience of participating in the formation of capital of banking institutions by the local self-governing authorities along with utility enterprises, nevertheless, given the best practices of domestic scientists, considering such institutions as communal banks is not realistic. Taking into account the changes in the legislative framework to strengthen financial decentralization, the article proposes the organizational-functional framework for a communal bank. The expediency of participation by local self-governing authorities together with utility enterprises in the formation of the equity capital of communal bank in the amount of 50% has been substantiated. Presence of a large potential of local self-governing authorities as well as utility enterprises, institutions and organizations in the formation of attracted funds of communal bank has been determined. Some priority directions of activity of communal bank have been suggested.
Authors and Affiliations
Alla Cherep, Svitlana Osypenko
Keywords
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