Volkova Nelia, PhD in Economics, Associate Professor of the Department of Finance and Banking, Vasyl’ Stus Donetsk National University, Vinnytsia, Ukraine

ORCID ID: 0000-0003-3790-3636
e-mail: n.volkova@donnu.edu.ua

Boiko Vita, Master of Department of Finance and Banking, Vasyl’ Stus Donetsk National University, Vinnytsia, Ukraine

ORCID ID: 0000-0003-1640-634Х
e-mail: boiko.v@donnu.edu.ua

Management of Financial Stability of the Banking System in the Context of Financial Market Volatility

Annotation. Introduction. The article is devoted to the study of the essence of the concept of “financial stability of the banking system” in terms of a systematic approach and analysis of the financial stability of the banking system of Ukraine during 2018-2020, which allowed to draw conclusions about the impact of taking into account new factors of influence. A conceptual approach to improving the mechanism for managing the financial stability of the banking system in the context of financial market volatility, which is designed to ensure a sufficient level of financial stability of the banking system.

Purpose. The aim of the article is to improve the conceptual approach to the mechanism of managing the financial stability of the banking system in the context of financial market volatility, which will prevent the development of long-term banking crises.

Results. The article analyzes the state of financial stability of the banking system in terms of economic standards governing banks, indicators of financial stability and the index of financial stress. A conceptual approach to improving the mechanism of managing the financial stability of the banking system in the context of financial market volatility is proposed. Management will be improved in such areas as: creation of legislative and other conditions that would allow banking institutions to realize their economic interests; establishing economic standards and supervising their observance in order to ensure the liquidity of banking activities; use of more indicators of financial stability of the banking system.

Conclusions. The application of this conceptual approach will allow on the basis of coordinated use of instruments to comprehensively affect financial stability avoiding, minimizing or compensating for possible threats in a dynamic financial environment. As the banking system will be able to respond quickly to financial threats and prevent negative phenomena that may lead to its financial failure, stability.

Keywords: banking system; financial stability of banking system; indicators of financial stability; regulatory ratios for banks; mechanism for managing the financial stability of the banking system.

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