Liquidity and financial stability as the key indicators of financial security of banking system of Ukraine

Abstract

Introduction. In the article the theoretical and practical aspects of determination of the financial security of the banking system are considered. Its main indicators such as liquidity and financial stability have been found out. It has been built the barometer of financial safety of the banking system with the help of economic and mathematical methods of modeling.

Purpose. The article aims to decide the theoretical and methodological issues of determination of the nature of the financial security of the banking system, the classification of its main indicators, and the search of approaches to the development of criteria for measuring the financial security of the banking system of Ukraine.

The method (methodology). It has been used empirical approach to the definition of "financial safety of the banking system". The statistics and economic and mathematical methods for modeling of financial safety indicators of the banking system and a barometer of financial security have been applied. The systemic approach to study ways to improve the management of financial stability and liquidity as fundamentals of financial security banking system has been used.

Results. It has been grounded the author’s understanding of the concept of "financial safety of the banking system".The indicators of financial safety of the banking system of Ukraine have been classified. Liquidity and financial stability are defined as key indicators of financial safety of the banking system. It has been developed the correlation and regression model of barometer of the banking system of Ukraine. The measures to enhance the effectiveness of monetary policy, monetary policy and banking regulation and supervision in the context of a high level of financial security of the banking system of Ukraine have been grounded.