№ 2015/4

The article deals with the recapitalization of non-bank financial institutions, in particular, credit unions and insurance companies. Raising the capitalization of non-bank financial institutions is one of the most important issues of the financial sector during the financial and economic crisis in Ukraine. The appropriate level of capitalization of insurance companies and credit unions ensure their solvency. Sufficient capitalization allows non-bank financial institutions to neutralize the risks of financial activities and obtain an appropriate level of profit under uncertainty.
Economic recession and stagnation of the domestic financial sector calls for scientific justification of the ways of increasing capitalization of credit unions and insurance companies under the current socio-political and economic crises, which is the purpose of the article.
A consequence of the global financial crisis of 2008 was the sharp decapitalization of credit unions in Ukraine. In this context, a series of issues related to the functioning of credit unions require solution, such as: improvement of the legal framework; consolidation of the cooperative nature of credit unions; issues of supervision and control over credit unions; protection of credit unions' depositors and others.
One of the main ways of increasing the capitalization of domestic insurance companies is improvement of state regulation. Effective state regulation of the activities of companies in the insurance sector could ensure their efficient operation and increased capitalization, as well as protection of policy holders and insurers etc.
Scientific and practical importance of the research's results consists in defining the main guidelines of the development of credit unions and insurance companies, which is a prerequisite for improved operation and recapitalization of non-bank financial institutions. In particular, to improve the capitalization of insurance companies, it is necessary: to provide a sufficient "depth" of insurance coverage (increasing the share of premiums in GDP); to introduce a mechanism of compulsory insurance on matters affecting the national interests, which would contribute to the stability of the economic environment and increased insurance premiums; to provide investment orientation of the insurers by strengthening the institutional focus of the insurance funds and creating favorable conditions for receiving investment income and capitalization through increased insurance reserves; to mobilize significant investments in international capital markets in order to facilitate intensive and irreversible integration of the insurance market of Ukraine in the world economy; and to provide innovative insurance services, and upgrade the existing insurance products to attract a wide range of insurers.

Keywords: credit unions, insurance companies, recapitalization, risks, insurance protection