Abstract
Scientific-methodical approaches to stress testing Ukrainian banking system in the context of the banks groups: state-owned, owned by Russia, foreign, private Ukrainian are analyzed in this study. It identifies an influence of the different groups in regulate the level of financial stability of the banking system. Highest level of financial stability of Ukrainian banking system was found to be connected with activity foreign banks from Eastern Europe and Central Asia exclaims banks owned by Russia and Ukraine.
 The proposed study, by using NBU stress testing scenario and by impacting of the devaluation of the national currency, presents the improved methodology for determining the level of financial stability of banking groups in terms of crisis increase exchange rate. This study was conducted by way of review of the data on bank core capital and regulatory capital, real and nominal GDP, consumer price index and reducing the rate of UAH to EUR.
Highlights
The successful functioning of the country's banking system depends on the financial stability of banks operating within its territory
Developing a methodology of stress testing that takes into account changes in exchange rates is a topical issue in the research on financial stability in the banking sector of Ukraine, especially when a group of banks with foreign capital have a significant influence on the country's banking system
Modifications were suggested for the method of statistical analysis for the dynamics of the indicators of stress testing, employing the continuous model, which calculates the share of net assets of foreign banks in foreign currency for a different exchange rate, EUR/UAH
Summary
The successful functioning of the country's banking system depends on the financial stability of banks operating within its territory. The effective methodology of stress testing the banking system must to take into account the features of the country's banking system and constantly evolve to counteract the emerging negative factors of internal and external economic crises. The activities of foreign banks in Ukraine are closely linked to the general state of the Ukrainian economy as their national economy In this way, their banking activities are more valued, drawing attention to the emerging negative factors of internal and external economic crises, especially exposure to currency risks. Developing a methodology of stress testing that takes into account changes in exchange rates is a topical issue in the research on financial stability in the banking sector of Ukraine, especially when a group of banks with foreign capital have a significant influence on the country's banking system
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