Review of the NBU Strategy on Ensuring the Financial Stability of the Banking System

Abstract

This article provides a comprehensive analysis of the Strategy of the National Bank of Ukraine (NBU) regarding the assurance of the financial stability of the banking system, particularly within the context of the unprecedented challenges posed by military aggression. The author elucidates the pivotal role of central banks, specifically the NBU, in maintaining the resilience of the financial ecosystem, substantiates the importance of macroprudential policy, and outlines the instruments employed by the NBU for risk identification, prevention, and minimization. Special attention is paid to the adaptation of the NBU's strategic goals to the conditions of martial law, including the priorities of sustaining the uninterrupted operation of banks, liquidity control, foreign exchange risk management, and ensuring the cybersecurity of financial infrastructure. The article analyzes the NBU's approaches to assessing financial stability, notably the utilization of qualitative indicators and composite indices such as the Financial Stress Index. It examines the NBU's strategic objectives aimed at ensuring the stability of the hryvnia, financial stability itself, facilitating economic recovery, developing modern financial services, and securing the effective functioning of the central bank. The short-term measures of the "resistance focus" and the medium-term initiatives of the "recovery focus," reflecting the NBU's dual task in wartime conditions, are outlined. Based on the conducted analysis, the article formulates prospects for future scientific research, encompassing the analysis of the effectiveness of macroprudential instruments in a wartime economy, the study of the impact of shock scenarios, the examination of the interaction mechanisms between monetary and macroprudential policies, as well as the analysis of international experience in anti-crisis measures. The conclusions underscore the NBU's crucial role in ensuring financial stability, its ability to adapt to new challenges, and its strategic vision for the future development of Ukraine's financial system.