Page 116 - Azerbaijan State University of Economics

CONTRIBUTION OF BANKING SYSTEM INTO FINANCIAL STABILITY OF UKRAINE

system of Ukraine that potential could be sources of risks, was confirmed:

assets-liabilities mismatch by terms, currencies and structure determines
liquidity risk, interest rate risk, currency risk, low liquidity of assets, the

abundance of non-performing loans in total loans volume, inadequate

capitalization of the banking system.
Structural and institutional weaknesses of the banking system led to

the accumulation of systemic risk and structural inconsistencies in the
Ukrainian economy, and require the development of an integrative

assessment of financial stability, which takes into account the specific
structure of the financial sector of Ukraine, the interconnectedness of its

sectors, the nature of systemic risk. It is also necessary introduce new

approaches of regulation.
Analysis of the current system of financial regulation in Ukraine

shows a lack of appropriate institutional, legal and organizational conditions

for financial stability maintenance.
Comparative analysis of the developed countries experience and

domestic practice of creation financial stability securing system allows us to
define the following priority of reforming of the current regulatory system:

- extension of the mandate of the National Bank of Ukraine on
ensuring financial stability;

- development of the institution for coordination and interaction of

financial regulators;
- arrangement of micro-prudential supervision at the level of

individual banks and the macro prudential supervision at the level of the
whole system;

- implementation and use of international approaches to the analysis
of financial stability in Ukraine;

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