Finance, as a unified economic category, possesses an internal structure of interconnected economic relations with specific features. Consequently, finance forms the basis of a system that creates, distributes, and utilizes funds. The concept of "financial system" is dynamic and evolves under the influence of socio-economic transformations and the development of financial science. However, the multitude of diverse and often conflicting definitions used in academia complicates the understanding of the essence of the "modern financial system." The study of this scientific category should be conducted within the overall concept of interconnections between public, regional, and sectoral finances, considering trends in the global economy. This should take into account modern challenges and financial system turbulence, while adhering to the principles of protecting the national economy and domestic producers. The proposed model of the modern financial system of the Russian Federation considers the specifics of the functioning of all major institutional structures of the financial system, taking into account their possible transformation under the influence of internal and external challenges (factors).
