COMPARING FINANCIAL STABILITY OF BANKING SYSTEMS OF EUROPEAN COUNTRIES

O. O. Tkachenko

Abstract


Financial stability of banking system allows banks to withstand external and internal shocks without losing an ability to carry out functions of financial intermediation, attracting resources and  investments. There are many approaches to estimation of financial stability of banking system and it is always implemented in the general macroprudential policy of central banks. The most useful and well known approaches are the indicator of financial stability Z-score and financial soundness indicators developed by the International Monetary Fund.

The article is devoted to the comparison of financial stability of banking systems of European countries. The author used the methodology of Z-score indicator and compared three groups of European countries by the level of financial stability of banking system. According to current fluctuations of the level of financial stability of banking systems of European countries the main measures aimed at increasing its level are analyzed in the paper. The author paid much attention to the financial reform of European Central Bank in the Eurozone mainly in the sphere of monetary policy and new requirements for banking activity inEurope.


Keywords


financial stability of banking system; financial soundness indicators; indicator Z-score; monetary policy; macroprudential regulation

References


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DOI: https://doi.org/10.18371/fcaptp.v2i19.56898

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ISSN (print) 2306-4994, ISSN (on-line) 2310-8770