DETERMINATION OF THE DOMINANT COMPONENTS ENSURING THE BANKING SYSTEM FINANCIAL STABILITY

Abstract

The article presents a list of indicators used to estimate the banking system financial stability from the emergence character perspective: the effectively implemented banking system functions, the intensity of credit and financial interaction in the interbank market, structural changes and financial imbalances in the banking system as well as the activity parameters displayed by systemically important banks. Causal relationships between the indicators characterizing certain estimation approach have been structured with the aim to improve the monitoring performed towards the banking system financial stability with the use of the canonical correlation method. The identified causal relationships between the indicators used to estimate the banking system financial stability should be taken into account when developing an effective regulatory action plan aimed at minimizing the negative impact produced by destabilizing factors and enhancing the factors that contribute to the financial development of the banking system. The project analyzes 11 developed canonical models describing the relationships between the indicators used to estimate the banking system financial stability and represents a list of the most significant explanatory indicators causing changes in the model performance characteristics. The rating of the most significant indicators used to estimate the banking system financial stability has been formed to enable determination of the dominant components ensuring financial stability in the future perspective.

Authors and Affiliations

Vitalii Lesyk

Keywords

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  • EP ID EP288795
  • DOI -
  • Views 137
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How To Cite

Vitalii Lesyk (2017). DETERMINATION OF THE DOMINANT COMPONENTS ENSURING THE BANKING SYSTEM FINANCIAL STABILITY. Міжнародний науковий журнал "Інтернаука". Серія: "Економічні науки", 1(7), 11-25. https://europub.co.uk/articles/-A-288795