MAIN DIRECTIONS OF STABILIZATION OF THE BANKING SYSTEM UNDER RISK ECONOMY

Abstract

The introduction examines the economic essence of the notion of "stability of the banking system", as well as the necessity of conducting research and determining the directions of stability of the banking sector of the economy. The purpose of this scientific research is to evaluate the activities of banking institutions in the period of manifestation of crisis phenomena and to develop the main directions for increasing the stability of the banking sector of the state economy. The article defines the main characteristic features of a stable banking system, the identification of which should take into account both quantitative (observance of normative values of activity, requirements for minimization of risks, etc.), as well as qualitative characteristics of the functioning of the banking system (level of trust, the availability of strategic plans or sets of measures for regulation activities, etc.). In particular, the following remain relevant: low level of capitalization of banks, which limits the ability of banks to increase lending volumes, first of all, when the economy needs significantfinancial support; low asset quality. Considering that the main part of assets is credit investments, then correspondingly significant credit risks increase; constant imbalance in the structure of assets and liabilities, which leads to a decrease in the level of bank liquidity; inconsistent level of profitability of banks. The indicators of stability of commercial banks are analyzed on the example of the domestic banking system. The directions of improving the level of stability of the banking system to ensure the growth of the economy as a whole are proposed. Consequently, the stable functioning of the bankingsystem should lead to the transition to a qualitatively new level of financial regulation and supervision and to ensure the stability of thefinancial and credit system as a whole.