FINANCIAL SECURITY OF THE BANKING SYSTEM OF UKRAINE

The article addresses the contemporary state of financial security in the banking system of Ukraine, with particular emphasis on the growing internal and external threats the sector faces, especially martial law, global economic changes, and the ongoing digital transformation. The relevance of the topic is due to the growth of risks that threaten the stability of financial institutions, not only in Ukraine but also throughout the world, since the interconnectedness of modern financial systems makes them extremely vulnerable to various destabilizing factors. The article explores the various components that contribute to the financial security of banks, including liquidity, capitalization, solvency, asset quality, and the reliability of banking operations. Moreover, the article delves into the internal and external threats to banking security, such as governance issues within banking institutions, compliance with liquidity standards, and the erosion of public trust in the banking sector. On the external front, it identifies macroeconomic instability, political risks, inflationary pressures, and fluctuations in currency exchange rates as the main factors that can destabilize the banking system. Additionally, the article examines the role of digital transformation in shaping the future of financial security. The rapid advancement of digital banking technologies, including mobile banking, internet banking, and POS terminals, presents both opportunities and risks for financial institutions. The growing reliance on digital platforms necessitates the development of robust cybersecurity frameworks to protect sensitive financial data and ensure the stability of banking operations. The article calls for a thorough assessment of the risks posed by the ongoing war, including cybersecurity risks, the impact of sanctions, and the potential loss of assets in conflict zones. The discussion underscores the necessity for a dynamic and multi-dimensional approach to financial security in the banking system, one that integrates both traditional risk management techniques and innovative solutions tailored to the rapidly changing technological and geopolitical environment.