Volume 69, #2

 “Economic Sciences: theory and practice” is scientific, refereed, biannual journal. The Journal of “Economic Sciences: theory and practice” has been founded by Azerbaijan State University of Economics in 1994.              
The Journal has been received to registration in the centre of international ISSN (International Standard Series Number, ISSN-2220-8739). Also, it has been included by the Supreme attestation Commission under the President of Azerbaijan Republic to the list of scientific publications on economic sciences.

About article

Igor O. Lyutiy Doctor of Sciences (Economics), Professor, Head of Finance Department, Pro-Rector (Science & Educational work) (financial and economic questions) at Taras Shevchenko National University of Kyiv
Olena V. Liubkina PhD., Assistant Professor, Economic Faculty, Taras Shevchenko National University of Kyiv (
Natalia Shpygotska doctoral student, Taras Shevchenko National University of Kyiv


The role of banking system in protecting of financial system from internal and external threats is defined; the requirements for banking system to ensure financial system stability are identified. The liaisons between banks and society are presented as agents’ liaisons amid agency theory; it’s conceptual and methodological apparatus. Different alternatives for reconciliation of banks’ commercial interests and socio-economic interests in ensuring financial stability are considered: development of required regulatory policy; incentives for banks to deal with threats within financial stability; development of specific qualities of banking system to facilitate financial system protection; extend influence of banks on financial stability. Institutional, legal and organization potential of banking system of Ukraine and institutional abilities of National Bank of Ukraine to maintain financial stability of state are analyzed.

Keywords: banking system, financial stability, agency dilemma, stable banking system, prices stability.
JEL Classification Codes: E52; E58