Kubakh Tetiana, Ph. D. (Economics), Associate Professor, Department of Finance, Banking and Insurance, Sumy State University, Sumy, Ukraine

ORCID ID: 0000-0003-3810-6380
e-mail: t.kubakh@uabs.sumdu.edu.ua

Rudenko Yevhen, student of the Department of Educational and Scientific Institute of Business, Economics and Management, Sumy State University, Sumy, Ukraine

ORCID ID: 0000-0002-3185-7213
e-mail: Rudenko.yeyu@gmail.com

Assessment of the Relationship between the Banking System on the Financial Security of the State

Annotation. Introduction. Permanent financial crises, currency fluctuations, inflation expectations, intensification of competition, increasing regulatory requirements for bank capital and risk reserves, military-political instability, globalization processes – all this is pressure for a stable financial condition of the banking system. Given the Anglo-Saxon structure of the financial market of Ukraine, banks are in fact the only internal source of capital for individuals and legal entities, which determines the importance of the impact of the banking system on the financial security of the state. In the conditions of dynamism of the modern world the question of preservation of reliability and efficiency of the modern bank becomes more and more actual. The issue of crisis prevention, threats, risks is given considerable attention in world practice, which is due to the need to maintain public confidence in banking institutions.

The resilience of the banking system and its members to internal and external threats cannot be ensured without effective tools for control and influence by the regulator. The state is directly responsible for ensuring not only the stable development of the banking services market, but also the effective functioning of all components of the financial system. Timely analysis of indicators of financial stability of the banking system allows to identify the main problems in the activities of domestic banks and identify areas for their elimination, which will ensure the stability of economic development of the state.

Purpose. The purpose of the article is to clarify the essence of the concepts of “financial stability of the banking system” and “financial security of the state”, as well as to determine the relationship between financial stability of the banking system and financial security of the state.

Results. It is determined that assessing the financial stability of the banking system is an important strategic task to ensure the financial security of the state. The interconnectedness and the place of financial stability of the banking system among such categories as stability, security, efficiency and reliability are substantiated. As a result of the calculation, the place of the banking component in the general structure of the financial security of the state was clarified. The analysis allowed to systematize the main threats to the financial security of the state, the source of which are the factors of the banking sector.

Keywords: financial resilience; financial stability; bank safety; banking system, state financial security.

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