Scientific and methodological approaches to assessing the level of financial stability of the banking system
DOI:
https://doi.org/10.35774/visnyk2025.01.094Keywords:
financial stability of the banking system, central bank, National Bank of Ukraine, bank rating, rating agencies, indicators of financial stability, prudential regulationAbstract
Introduction. Effective operation of the banking system is key to the development of market relations in Ukraine. This determines the main function of the National Bank of Ukraine in regulating banking activities. The financial stability of the banking system determines its ability to provide the necessary banking resources for the socio-economic development of Ukraine. Therefore, there is an important issue of improving the scientific and methodological approach to assessing the financial stability of the banking system.
The purpose of the article is to systematize foreign and domestic experience in the use of financial stability assessment systems in the banking sector, to identify the advantages and disadvantages of methods for assessing the financial stability of banks, as well as to summarize modern trends in ensuring the stable operation of the banking system of Ukraine.
Research methods. The following methods were used in the research process: theoretical generalization, the possibilities of which were used to generalize modern scientific and methodical approaches to assessing the financial condition of banks; system approach and comparative analysis - to compare indicators of financial stability.
The results. The analysis of the system of indicators and the systematization of scientific and methodological approaches to the assessment of the financial condition of banks was carried out. The main indicators that reflect the current financial condition of banks are considered. The article examines the main directions of assessing the financial stability of banking institutions, in particular: using rating assessment systems; by calculating financial stability indicators developed by the National Bank of Ukraine based on the recommendations of the International Monetary Fund; based on the calculation of the main financial indicators of banks; on the basis of calculation and monitoring of banks’ compliance with prudential regulations. This set of indicators can help to understand the quantitative and qualitative aspects of the processes taking place in the banking system of Ukraine. An analysis of financial stability indicators recommended by the International Monetary Fund and used by the National Bank of Ukraine as a means of assessing the financial stability of the domestic banking system has been carried out. The advantages and disadvantages of the existing approaches to assessing the stability of the functioning of the domestic banking system are revealed. The key ways that will help ensure the stability of the financial condition of banking institutions are proposed.
Perspectives. Factors influencing and managing the financial stability of the banking system are a promising direction for further scientific research.
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