Subject. Economic relations arising in the process of functioning and development of regional banking systems. Topic. Methodology for assessing the stability of the regional banking system. Purpose. The purpose of the work is to develop recommendations to improve the sustainable development of the banking system in the region. Methodology. The study was carried out using abstract-logical, comparative, economic and statistical approaches, a graphical technique for visualizing statistical and calculated data. Results. The author’s methodology for assessing the level of stability of the regional banking system is proposed, which includes three groups of indicators: indicators of institutional development, indicators of financial development, indicators of systematic functioning, which allows diagnosing the peculiarities of the development of the banking system in the territorial context. This technique has been tested, and a set of measures has been developed to increase the level of stability and reliability of regional banks. Application area. The research results, main provisions, conclusions, recommendations can be used by all commercial banks, regardless of the organizational and legal form and policy of conducting banking business. Conclusions. Currently, in the context of the spread of coronavirus infection in the country, it is important to assess the stability of the banking system, especially in the territorial context. The COVID-19 pandemic has become a serious problem for the development of the world’s economy, which also negatively affected banking activities. Thus, in a pandemic, the stability and sustainability of the banking system as a whole and in the regions is of great importance for maintaining the efficiency of the entire economic system. Consequently, the need for a comprehensive study of the level of stability of the regional banking system is determined by objective modern conditions. Keywords: banking system, efficiency, competitiveness, region, stability, reliability, regional banking system.