Institutional Framework for Financial and Economic Security of the State: Structure and Functions

Abstract

The article is dedicated to analyzing the institutional framework for financial and economic security of the state from a systemic approach perspective, encompassing structural-functional, organizational, and coordination aspects of the functioning of a multi-level system for protecting national economic interests. The aim of the article is to analyze the structure and functions of the institutional framework for financial and economic security of the state, identify key problems in the functioning of this system, and develop proposals for its improvement. The main problems of the institutional system for ensuring financial and economic security are outlined, and ways to overcome them are proposed. The influence of institutional architecture on the effectiveness of threat response, security policy coordination, and macroeconomic stability assurance is examined, as well as the adaptation of institutional mechanisms to contemporary national security challenges. Methods. To study the theoretical aspects of institutional provision of financial and economic security, a literature review was conducted; a comparative method was applied to evaluate different approaches to organizing institutional security systems; systems analysis enabled a comprehensive assessment of the structure and interrelationships between different levels of the institutional hierarchy. Results. The paper describes a four-level structure of institutional provision, formed depending on the level of authority, functional specialization, and territorial coverage of institutional actors’ activities. The influence of internal and external factors on the effectiveness of the institutional system is determined, and the main functions of key bodies in the field of financial and economic security are systematized. Conclusions. The use of a comprehensive and consistent approach to optimizing the institutional framework for financial and economic security is proposed to eliminate functional duplication, enhance coordination, and adapt to modern threats. This contributes to improving the effectiveness of countering internal and external threats, strengthening the institutional capacity of the state, and opens opportunities for integration with international security systems.