CONCEPTUAL APPROACHES TO FINANCIAL STABILITY AND THE MAIN INDICATORS OF FINANCIAL STABILITY OF BANKS

Abstract

As a result of increased inter-industry and transnational integration in the global economy, financial systems are becoming more integrated and increasingly complex, both nationally and internationally. Therefore, the financial system is becoming more complex due to the complexity of financial instruments. In the article, the factors that threaten the provision of financial stability at the macro and micro level and the main directions of financial stability protection are defined in the conditions of the diversity of activities and high level of risks. The research shows that the financial crisis that occurred in 2008 and the devastating effects of the COVID-19 pandemic, which began in 2019, on the financial systems made it necessary to pay more attention to ensuring financial stability. Purpose – taking into account current trends, the concept of financial stability, theoretical and methodological foundations for ensuring the financial stability of firms and especially banks, and ways to solve the problem of improving efficiency in this area is the main goal of the study. Methodology – In the course of the study, a literature review, content analysis, methods of comparison and generalization were used. Study Findings – Since the financial crisis that began in 2008 and the spread of the 2019 COVID-19 pandemic, although no single approach has been taken, despite increased research in this area, support programs and measures to strengthen the regulatory framework, accepted in Europe and America to solve the problem belong to the topic considered as the best examples in research.