THE IMPORTANCE OF FINANCIAL INSTITUTIONS IN ECONOMIC DEVELOPMENT

This article examines the importance and role of financial institutions in ensuring economic development and sustainable economic growth. The study analyzes the activities of banks, insurance companies, investment funds, and other financial organizations in supporting entrepreneurship, attracting investments, increasing employment, and improving financial stability. Particular attention is paid to the role of financial institutions in the efficient allocation of financial resources and the development of the national economy. The article also highlights modern challenges in the financial sector and discusses ways to improve the effectiveness of financial institutions based on international experience. The findings emphasize that a strong and stable financial system is one of the key factors for economic progress and social welfare.