ASSESSMENT OF THE BANK’S FINANCIAL STABILITY AS A TOOL FOR ENSURING SUSTAINABLE DEVELOPMENT OF THE BANKING SYSTEM

Abstract

This article examines the conceptual essence of a bank’s financial stability and its fundamental role in ensuring the sustainable development of the macro-banking system amid contemporary economic transformations, heightened financial risks, and external environmental instability. The study substantiates financial stability as a core characteristic of banking operations, determining an institution’s capacity to maintain liquidity, solvency, and capital adequacy while effectively counteracting internal and external challenges.
Key indicators of the financial stability of JSC CB «PrivatBank» are comprehensively analyzed, specifically focusing on liquidity, capital adequacy, credit risk, and overall reliability metrics for the period of 2021–2025. The findings establish that the bank successfully maintains a sufficient level of liquidity and capitalization to function stably under heightened macroeconomic uncertainty. The empirical results demonstrate that effective risk management, a balanced capital structure, and regulatory compliance are vital prerequisites for strengthening institutional resilience.
Particular attention is dedicated to the strategic role of ESG approaches and the integration of the UN Sustainable Development Goals into corporate management frameworks. Implementing sustainable development principles improves risk management quality, strengthens stakeholder trust, diversifies corporate income sources, and ensures long-term banking stability. Ultimately, financial stability assessment serves not only as a routine monitoring tool but as a critical element of strategic management aimed at ensuring long-term banking sector sustainability.