The article considers the essence of the concept of ‘financial stability of a banking institution’. The external and internal factors of influence on the activities of commercial banks in the current socio-economic conditions of Ukraine are identified. It is noted that the leading role in ensuring financial stability belongs to the bank, subject to effective regulation and the use of internal methods to ensure financial stability. The existing methodological approaches to assessing the financial stability of banks used in domestic practice are analysed. It is noted that in order to ensure financial stability, it is necessary to regularly monitor and analyse vulnerabilities and risks of the financial system based on macroeconomic and prudential indicators, as well as to respond to them in a timely manner with appropriate measures. It is determined that the use of integrated approaches and the latest methods, such as econometric modelling, fuzzy set methods and graphical methods, allows obtaining a more detailed and accurate picture of the financial condition of banks and ensuring their effective management. It has been shown that the development and implementation of new methods and improvement of existing tools for analysing financial stability are extremely important for ensuring the stability and development of the banking sector. Effective financial stability management requires the use of modern methods and approaches that allow timely and accurate risk assessment and adaptation to dynamic conditions
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