Financial security of the banking system of Ukraine

This study examines approaches to understanding the essence of the financial security of the state's banking system, which is one of the key components of the economic system. The analysis was carried out and scientific research related to the understanding of the concept of «financial security of the bank» was organized. The main goal of ensuring the financial security of banks and the structure of the country's banking sector has been determined. The dynamics of changes in the number of operating banks in the period from 2019 to the first quarter of 2023 were monitored. The solvency of banking institutions during the studied period was studied. The article evaluates the main indicators of the state's banking sector and analyzes its current state, namely the dynamics of income and expenses, for the period from 2019 to 2023 based on official statistical data of the National Bank of Ukraine. The evaluation of the effectiveness of the functioning of the banking system of Ukraine is given, using the integral indicator of the security of the banking system according to the recommendations of the Ministry of Economic Development and Trade of Ukraine. For this purpose, the following calculation indicators were considered and determined: the share of overdue loans in loans granted by resident banks, the ratio of bank loans and deposits in foreign currency, the share of foreign capital in the authorized capital of banks, the ratio of long-term loans and deposits, the profitability of assets, the ratio of liquid assets to short-term liabilities. After that, the range of limit values of the integral indicator of banking security was examined and compared with the data of the analyzed period. The results of the calculations made it possible to draw conclusions about the current state of financial security of the banking system of Ukraine. It was determined that it is necessary to develop and implement a set of measures aimed at increasing the overall level of financial security of the banking system. Taking into account the results of the analysis and calculations of the indicators of the integral indicator of financial security, it is clear the importance of the need to implement these measures to ensure the stability and reliability of the functioning of the banking system as a whole.