Theoretical and Methodological Aspects of Assessing the Financial Stability of the Banking System

Abstract

The aim of the article is to substantiate the directions and develop methodological tools for assessing the financial stability of the banking system. Taking into account the emergence character of the banking system as a complex systemic formation and the results of the analysis of scientific literature, arguments are given regarding the need to assess its financial stability using the following groups of indicators: intensity of the credit and financial interaction in the interbank market; functional load of the banking system in the context of ensuring macroeconomic development; structural changes and financial imbalances in the banking system and the activity of systemically important banks. There proposed a methodological approach to assessing the financial stability of the banking system, which implies quantitative integral assessment of its level and qualitative interpretation of the results using the methods of entropy and “golden section”, respectively. The application of the improved approach will allow identifying sources of risk distribution in the banking system and develop a set of effective regulatory measures in accordance with a certain level of its financial stability. Prospects for further research in this direction are to determine the dominants of ensuring the financial stability of the banking system as well as the threshold values of its assessment indicators, which serve to diagnose the crisis and can be used as a tool for the macro-prudential policy.

Keywords

• financial stability
• banking system
• emergence
• financial imbalances
• systemically important banks