Shpylovyi B. Financial security system of the banks of Ukraine

The dissertation is devoted to the substantiation of theoretical and methodological positions and practical recommendations on improvement of the system of financial security of Ukrainian banks. Theoretical bases and scientific fundamentals for research the nature of the system of banks’ financial safety substantiated. The definition “the financial security system of banks”is clarified. The structural and elemental composition of the financial security system of banks was grounded. The system of grouping the factors of possible negative impact and identification of threats to the financial security of banks developed. The procedure for their gradual systematization proposed. The foreign experience of assessing the financial security system of banks concerning the methods and types of stress testing is analyzed. The stress testing models classified according to the types of banks’ financial security risks based on the generalization of these methods. The appropriate methodical tools for proposed methodology grounded. The expediency of implementing the stress testing models in the practice of domestic banks for evaluation of their financial security system substantiated. Trends in the development of the banking system of Ukraine explored. It allowed identifying the signs of non-compliance of the banking system’s state with modern requirements. Methodological approaches to assessing the financial security system of banks improved by a comprehensive combination of parametric assessment of financial security of banks at the level of the banking system and its integrated assessment at the level of individual banking institutions. It allowed identifying the list of current threats for the financial security of banks that occur at three levels (macro-, microeconomic, intrabank) of the financial safety system of banks in Ukraine. Stress testing conducted by modelling the impact of stress indicators on the integrated score of the level of financial security of banks, based on which the forecast stress effects are identified. The factor-specific modelling based on covariance for estimating chain impact of factors on the integral score of financial security banks made, as well as indicator’s forecast changes due to of each stress-indicator determined on the base of technique elaborated by author. The critical assessment of the priorities set in the NBU Strategy is completed. The necessity of supplementing the Strategy of the National Bank of Ukraine with measures to ensure the financial security of banks is substantiated, in particular supplement of them with the framework of ensuring the financial security of banks was grounded. The system of preventive measures to neutralize threats to the financial security of banks elaborated. The comprehensive mechanism of development of financial security system of the banks improved by justification set of structural elements, that allow gradually counteract to the influence of external and internal negative factors. The tools for the financial management of financial security systems developed, which provides the complexity of instrumental support for the mechanism of development of the financial security system of banks and the creation of positive synergy effects from the use of the proposed instruments. Keywords: financial security, banking system, the level of providing the financial security of banks, blocks and subsystems of financial security systems, factors and threats to financial security, the development mechanism for the system of financial security of banks.