Page 106 - Azerbaijan State University of Economics

CONTRIBUTION OF BANKING SYSTEM INTO FINANCIAL STABILITY OF UKRAINE

on financial stability risks assessment in accordance with the adopted

interdepartmental agreement. In general, the experts of the National Bank of
Ukraine have accumulated years of experience working with international

financial institutions, including those under the "Stand-by" and the technical

assistance. Cooperation with the International Monetary Fund on exchange
of statistical data in accordance with the Special Data Dissemination

Standard in the General Data Dissemination System in underway (IMF,
2007).The information for IMF on the indicators of the financial stability of

banking sector is prepared on quarterly basis. Data on indicators of financial
stability is posted on the official website of the National Bank of Ukraine, as

well as in electronic Dissemination Standards Bulletin of the International

Monetary Fund on the Internet.
With technical assistance from international financial institutions, the

National Bank of Ukraine has improved the legal framework and methods of

monitoring and analysis of financial stability; at the beginning of 2009 stress
testing of the banking system was introduced at the National Bank of

Ukraine level, as well as at the banks’ level on demand of NBU.
The need to ensure simultaneously stability of the national currency,

price stability and the stability of the banking system, in fact, entrusts the
National Bank of Ukraine with challenge of achieving three mentioned

objectives at the same time in the context of stability ensuring, while the

solution may cause controversy in the regulatory strategy. Such trilemma can
be solved only by establishing priorities for the central bank goals. Recent

changes in banking laws determine these priorities as follows: the highest
priority is designated to the stability of the national currency of Ukraine,

followed by the maintenance of price stability in the state, and, finally, the
promotion of the banking system stability. However, this approach does not

solve the problem of operational inefficiency, but rather complicates the

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