Shevchuk V. Monetary instruments to ensure financial stability of the banking system

In the dissertation, theoretical principles and practical recommendations aimed at increasing the efficiency of monetary instruments in ensuring financial stability of the banking system are developed. The essence and economic nature of the financial stability of the banking system are explained and on this basis the understanding of the concept "financial stability of the banking system" is deepened, the components of financial stability have been proposed, the classification of monetary instruments has been improved, the interdependence between the financial stability of the banking system and the monetary policy of the central bank has been determined on the basis of the proposed econometric models. The reasons of the increase of imbalances and instability in the banking system of Ukraine in the pre-crisis period were analyzed, the efficiency of monetary policy implementation and the effectiveness of using the traditional and non-traditional monetary instruments of the NBU were assessed. The empirical method of testing financial instability in Ukraine was developed and the inconsistency in the NBU actions regarding the choice between support of the exchange rate and support of liquidity of the banking system during periods of macro-financial stress was revealed. The author proposes a set of recommendations aimed at increasing the effectiveness of the NBU monetary policy, reducing the level of financial instability in the banking system. The methodology for assessing banks' susceptibility to systemic liquidity risk based on the use of statistical modeling methods has been improved. The list of measures for the development of non-traditional instruments of monetary regulation in the provision of financial stability of the banking system is proposed.