From 2010 to 2022, scientific studies on bank capitalization focused on issues of financial stability, reliability, solvency, and profitability of banks, capital adequacy, risk management, and management of non-performing loans. Bank capitalization has been proposed to be interpreted as an indicator of stability and reliability, which characterizes the financial potential of a bank (capital and liabilities) to conduct active operations (lending, securities transactions, settlement and cash services) while covering credit, operational, market, and systemic risks. Macroeconomic stability is viewed through the prism of the country's economic and social development, the volatility of wage levels and prices, production volumes, and unemployment levels. The concept of "macroeconomic stability" is defined as a state of equilibrium between different sectors of the state's economy, characterized by stable socio-economic, foreign economic, and financial growth within the country over a certain period of time. The fundamental bases of the interaction between bank capitalization and macroeconomic stability have been argued through the development of a theoretical conceptual model that confirms the presence of a causal relationship between the level of bank capitalization and macroeconomic stability, driven by a set of direct and indirect catalysts (socio-economic, foreign economic, financial, and discouraging).
A methodological toolkit for assessing the integral indices of the level of bank capitalization and macroeconomic stability, with and without considering disincentive indicators (corruption and the shadow economy), has been defined using the method of optimal uniformity for 34 European countries during 2010-2022. Based on the proposed adapted scale, it was found that most countries have a low average level of bank capitalization (0-0.19), including Albania (0.13), Austria (0.13), Belgium (0.14), Bulgaria (0.15), Denmark (0.16), Malta (0.13), the Netherlands (0.16), Poland (0.12), Slovakia (0.13), Hungary (0.17), France (0.15), and the Czech Republic (0.17). The highest index value is observed in Sweden (0.44). Based on the proposed adapted scale, it was found that the lowest average levels of the integral index of macroeconomic stability are characteristic of Albania (0.32), Spain (0.35), Slovakia (0.34), Slovenia (0.35), and Cyprus (0.35), while the highest index values are observed in Switzerland (0.6) and Luxembourg (0.66). When calculating the integral index of macroeconomic stability with elements of corruption and shadow economy, it was found that the lowest average index levels (0-0.4) are observed in Ukraine (0.2), Albania (0.35), Moldova (0.38), and Serbia (0.37), while the highest values of the integral index were recorded in Luxembourg (0.9), Ireland (0.8), and Switzerland (0.85). Using the principal component method, three indicators from each group were selected for clustering (non-performing loan levels, return on assets and equity; inflation and unemployment levels, and the Gini index). In 2010 and 2015, four clusters were identified, and in 2020, three clusters were identified. The reasons for the transformational processes in the cluster composition include the reduction of non-performing loan levels, inflation, unemployment, and the Gini index, and the increase in asset profitability. A matrix was developed that included European countries resistant to the transformational processes of bank capitalization and socio-economic development. The interaction between bank capitalization and macroeconomic stability in 34 European countries was formalized using canonical analysis. An increase in the share of variance in bank capitalization indicators explained by changes in macroeconomic stability indicators was identified, from 5.2% to 13.6% when including disincentive indicators of macroeconomic stability (corruption and shadow economy indicators), and the strength of the relationship between the canonical variables (canonical R) from 0.359 to 0.520. The adequacy of the constructed canonical models was confirmed by Chi2 and p <0.05. Based on panel regression models with random and fixed effects, identified using the Hausman test and Breusch-Pagan Lagrange multiplier evaluation, functional relationships were determined for the impact of macroeconomic stability with elements of corruption and shadow economy on the level of bank capitalization in the studied European countries during 2010-2022. An international functional model for benchmarking the management of bank capitalization levels under conditions of ensuring macroeconomic stability was developed, including three groups of benchmarks: institutional-innovative, monetary-cr
