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{"id":22071,"date":"2026-06-02T09:35:55","date_gmt":"2026-06-02T06:35:55","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=22071"},"modified":"2026-06-03T09:05:57","modified_gmt":"2026-06-03T06:05:57","slug":"impact-of-digitalization-on-bank","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/impact-of-digitalization-on-bank\/","title":{"rendered":"Chernyshova L. Impact of Digitalization on Bank Financial Stability: Methodological Approaches to Assessment under Martial Law"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n
JEL Classification:<\/strong> G21, O33<\/span><\/i><\/td>\nDOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V56(2026)-36<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][vc_column_text]Chernyshova Lyudmila, <\/b>Candidate of Economic Sciences, Associate Professor, Associate Professor of the Department of Accounting, Analysis and Audit, Odesa National University of Economics, Odesa, Ukraine<\/span><\/p>\n

ORCID:<\/strong> 0000-0003-3213-6589<\/span><\/a>
\ne-mail: <\/strong>liylek196322@gmail.com<\/span><\/a><\/p>\n

Impact of Digitalization on Bank Financial Stability: Methodological Approaches to Assessment under Martial Law<\/b><\/p>\n

Abstract. Introduction. <\/i><\/b>Ukraine’s banking system has faced unprecedented challenges due to the confluence of global digital transformation and the implementation of martial law. Traditional methods of assessing financial stability often overlook the importance of technological infrastructure in maintaining operational continuity amid extreme uncertainty.\u00a0\u00a0<\/span><\/i><\/p>\n

The objective of the study is to substantiate a conceptual framework and develop a comprehensive model for assessing bank financial stability that integrates digital maturity indicators and security risk factors.<\/span><\/i><\/p>\n

The research is based on a systemic approach, using the Saaty Analytic Hierarchy Process to determine weight coefficients and mathematical modeling to calculate an integrated index.<\/span><\/i><\/p>\n

Results<\/i><\/b>. The study introduces the concept of “digital financial resilience,” emphasizing a bank’s ability to maintain critical operations despite physical infrastructure damage. The proposed model was tested using PrivatBank, Ukraine’s digital leader, as a case study. The analysis shows that PrivatBank’s high levels of cloud migration, remote client identification via the Diia state service, and automated cost management enabled the bank to maintain a high resilience index ($I_f = 0.82) despite a significant war risk discount.\u00a0\u00a0<\/span><\/i><\/p>\n

The research further develops the classical CAMELS methodology by incorporating a new “T” (Technology) block, which evaluates cyber-resilience, SLA levels, and digital activity. A unique mathematical formula for the integrated financial resilience index was developed, accounting for wartime asset exposure.\u00a0<\/span><\/i><\/p>\n

The findings provide a strategic toolkit for commercial banks to enhance their stress-testing procedures and for the National Bank of Ukraine to modernize prudential supervision standards in a digital economy.<\/span><\/i><\/p>\n

Conclusions<\/i><\/b>. It is concluded that digitalization acts as a primary “cushion of safety” for banks during conflict. Future research will focus on the impact of Central Bank Digital Currencies (e-hryvnia) on the architecture of the financial system and the development of zero-trust security protocols.<\/span><\/i><\/p>\n

Keywords<\/i><\/b>: bank financial stability; digitalization; martial law; CAMELS-T model; cloud computing; integrated resilience index; digital identity; cyber security.<\/span><\/i><\/p>\n

References<\/b>:<\/strong><\/p>\n

    \n
  1. NBU (December, 2025). Financial Stability Report. https:\/\/bank.gov.ua\/ua\/stability\/report [in Ukrainian].\u00a0<\/span><\/li>\n
  2. Bereslavska, O. (2024). Transformation of banking services in the context of digitalization. Ekonomika ta suspiljstvo,\u00a0 60. DOI: https:\/\/doi.org\/10.32782\/2524-0072\/2024-60-99. [in Ukrainian].<\/span><\/li>\n
  3. Dolmatov, S.V. (2025). The role of information and analytical systems in ensuring the financial stability of banks during military conflicts. Sotsial\u02b9nyy rozvytok: ekonomiko-pravovi problemy, 9. DOI: https:\/\/doi.org\/10.70651\/3083-6018\/2025.9.11. [in Ukrainian].<\/span><\/li>\n
  4. Reverchuk, S., Tvorydlo, O. (2023). Digitalization of banking business: challenges and opportunities for state regulation. Ekonomika ta suspiljstvo, 55. DOI: https:\/\/doi.org\/10.32782\/2524-0072\/2023-55-45. [in Ukrainian].<\/span><\/li>\n
  5. Sytnyk, N., Polovchak, I. (2024). Digitalization and cybersecurity in ensuring the security of banks in wartime conditions. Halyts\u02b9kyy ekonomichnyy visnyk, 4 (89), 70-81. DOI: https:\/\/doi.org\/10.33108\/galicianvisnyk_tntu2024.04 [in Ukrainian].<\/span><\/li>\n
  6. Sheludko, S.A. (2025). Digitalization of banking activities in Ukraine as a challenge and driver in ensuring financial security. Problemy suchasnykh transformatsiy. Seriya ekonomika ta upravlinnya, 18. DOI: https:\/\/doi.org\/10.54929\/2786-5738-2025-18-08-07. [in Ukrainian].<\/span><\/li>\n
  7. Xue Liu, E. (2021). Stay Competitive in the Digital Age: The Future of Banks. IMF Working Paper, 2021\/046. https:\/\/surl.li\/hrxohh.\u00a0<\/span><\/li>\n
  8. Basel Committee on Banking Supervision (Revised \u2013 November 2025). \u00a0 Basel III Monitoring Report .\u00a0 https:\/\/www.bis.org\/bcbs\/publ\/d599.pdf.\u00a0<\/span><\/li>\n
  9. Lambert Luis (2025). The Powerful Impact of Digital Banking Post-Pandemic in 2025. https:\/\/www.lastingdynamics.com\/blog\/digital-banking-post-pandemic\/.<\/span><\/li>\n
  10. Hossain, S.M., Siddiqui, M.K., Ahad, Md F.R., & Selahin,\u00a0 M.M. (2025). Digital transformation strategies for post-pandemic business recovery: A Thematic and Empirical Analysis. International Journal of Science and Resear, 16(2), 483-493. DOI: https:\/\/doi.org\/10.30574\/ijsra.2025.16.2.2352.<\/span><\/li>\n
  11. Siddik, Md. N. A., Habibullah, M. S., Kabiraj, S., & Rakib, S. H. (2026). Does Digital Finance Foster Financial Stability? Empirical Evidence from Cross-Country Analysis. Economies, 14(3). 72. DOI: https:\/\/doi.org\/10.3390\/economies14030072.<\/span><\/li>\n
  12. Catalog of Fintech Companies 2025. https:\/\/drive.google.com\/file\/d\/1OrjB-hqKNsgIpSb1Yyf1Jl-fVI1OI1_G\/view [in Ukrainian].<\/span><\/li>\n
  13. European Central Bank (November, 2025).. Financial Stability Review. https:\/\/www.ecb.europa.eu\/pub\/fsr\/.<\/span><\/li>\n
  14. NBU (2026). Supervisory statistics. https:\/\/bank.gov.ua\/ua\/statistic\/supervision-statist [in Ukrainian].<\/span><\/li>\n
  15. Zakhozhai, V.B.(2025). Application of statistical methods for assessing the financial stability of banking institutions in conditions of economic instability. Akademichni viziyi, 35. DOI: https:\/\/doi.org\/10.5281\/zenodo.13734585. [in Ukrainian].<\/span><\/li>\n
  16. Kovalenko ,V.V., Masyuk, V.O. (2025). Assessment of the financial stability of banks using the SREP system: foreign and national experience. Naukovyy visnyk Odes\u02b9koho natsional\u02b9noho ekonomichnoho universytetu, 6 (331), 35-44. DOI: https:\/\/doi.org\/10.32680\/2409-9260-2025-6-331-35-44. [in Ukrainian].<\/span><\/li>\n
  17. Abuamsha, M.(2026). The impact of digital financial services on the financial stability of banks: Evidence from complex environments. Discover Sustainability, 7, 270. DOI: https:\/\/doi.org\/10.1007\/s43621-025-02526-6.<\/span><\/li>\n<\/ol>\n

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    Chernyshova L. (2026). “Impact of Digitalization on Bank Financial Stability: Methodological Approaches
    \nto Assessment under Martial Law”. Modern Economics, 56(2026), 255-260. DOI: https:\/\/doi.org\/10.31521\/modecon.V56(2026)-36.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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    [vc_row][vc_column][vc_column_text] JEL Classification: G21, O33 DOI: https:\/\/doi.org\/10.31521\/modecon.V56(2026)-36 [\/vc_column_text][vc_column_text]Chernyshova Lyudmila, Candidate of Economic Sciences, Associate Professor, Associate Professor of the Department of Accounting, Analysis and Audit, Odesa National University of Economics, Odesa, Ukraine ORCID: 0000-0003-3213-6589 e-mail: liylek196322@gmail.com Impact of Digitalization on Bank Financial Stability: Methodological Approaches to Assessment under Martial Law Abstract. Introduction. Ukraine’s banking system
    Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":13475,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[252,67],"tags":[253],"class_list":["post-22071","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-56-2026","category-articles","tag-56-2026"],"_links":{"self":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/22071","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/comments?post=22071"}],"version-history":[{"count":3,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/22071\/revisions"}],"predecessor-version":[{"id":22221,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/posts\/22071\/revisions\/22221"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/media\/13475"}],"wp:attachment":[{"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/media?parent=22071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/categories?post=22071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/modecon.mnau.edu.ua\/en\/wp-json\/wp\/v2\/tags?post=22071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}