Abstract. This article highlights the role and importance of the financial system in improving the investment climate. The article analyzes the impact of the banking system, financial markets, and state financial policy, which are the main components of the financial system, on investment processes. The article substantiates that the availability of financial resources, their effective distribution, and the stable functioning of the financial system are important factors in the formation of the investment climate. It also indicates the mechanisms for supporting investment processes through the financial system and the need to improve them.