FINANCIAL SECURITY OF A SMALL OPEN ECONOMY IN CONDITIONS OF GLOBALIZATION

In the conditions of the globalization of economies the issue of financial stability, which is a condition for the economic security of the state, has acquired a special significance and is a very actual problem. The aim of the article is to determine the importance of the role of financial stability for maintaining the economic security and economic growth and to validate the role of the Safety Network Institution in maintaining stability. The article is a continuation and summary of the previous research in regard to the stability of the financial system and functioning of the Safety Network. The methodology of this research included source analysis of scientific literature and business reports as well as analysis of macro and micro economic data regarding the functioning of markets and financial systems. The obtained results highlight the importance of the institutional structure of the Safety Network, adequate regulation and effective supervision as key factors for maintaining financial stability which is a condition for long term financial security.