Improvement of the mechanism for ensuring the financial stability of the banking system of Ukraine

Abstract

Socio-economic and political trends indicate that the modern global economy will soon change significantly. This may create new challenges for the development of banking structures. Unresolved of a significant number of problems of enterprises of the post-Soviet space in developing countries such as: lack of modernization; lack of energy-saving technologies; lack of innovation; low level of investment; the lack of own financial resources for development is complicated by the consequences of the dominance of the pandemic in the modern world and the military actions of the aggressor on the territory of our country. One of the effective ways to solve them is the development of banking activities. The banking system and its products are an important and indispensable attribute of a country operating on the basis of a market economy, as it provides the right to an effective system of protection of personal and property interests of citizens and legal entities, their rights, and also supports social stability. Restoration and maintenance of the proper level of financial stability of banks is possible only in the conditions of reconstruction of the system of identification, classification, localization and regulation of banking risks in the context of changes in the external environment. The activity of banks in market conditions is subject to its general laws, therefore it is necessary to develop appropriate mechanisms for managing financial activities aimed at increasing the competitiveness of banks. An important role is played by the ability of bank managers to determine the level of financial stability of their own bank, competing banks and counterparties. Therefore, the basis of the further intensive development of the banking system of Ukraine and, accordingly, by solving the problems of the transitional stage of the development of the national economy, is the search for ways to optimize the financial condition of banks. The article examines ways to increase the efficiency of banking institutions, taking into account the research of specialists in the field of economic science. In order to ensure the financial stability of society, a long-term transformation of all mechanisms of the public financial system is necessary, which in principle can raise questions that require concrete solutions. In the context of Ukraine's integration into the European financial space, choosing the right direction to improve the financial condition of banking institutions is an important prerequisite for the sustainable growth of the Ukrainian economy. The importance of the mentioned issues, the logical incompleteness of their coverage and the urgent need to research the mechanism for ensuring the improvement of the bank's financial condition determined the relevance of the research topic, its purpose, tasks, methods and directions of research. So, despite the wide range of researchers and their scientific conclusions on this topic, the issue of improving the financial condition of the bank, studying modern trends, determining the features and prospects for development remains relevant even today.