Page 91 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE

CONTRIBUTION OF BANKING SYSTEM INTO FINANCIAL
STABILITY OF UKRAINE

Igor O. Lyutiy
Doctor of Sciences (Economics), Professor, Head of Finance Department,
Pro-Rector (Science & Educational work) (financial and economic
questions) at Taras Shevchenko National University of Kyiv

Olena V. Liubkina
PhD., Assistant Professor, Economic Faculty,
Taras Shevchenko National University of Kyiv
([email protected])

Natalia Shpygotska
doctoral student, Taras Shevchenko
National University of Kyiv

Abstract

The role of banking system in protecting of financial system from internal and

external threats is defined; the requirements for banking system to ensure
financial system stability are identified. The liaisons between banks and society

are presented as agents’ liaisons amid agency theory; it’s conceptual and
methodological apparatus. Different alternatives for reconciliation of banks’

commercial interests and socio-economic interests in ensuring financial stability
are considered: development of required regulatory policy; incentives for banks

to deal with threats within financial stability; development of specific qualities

of banking system to facilitate financial system protection; extend influence of
banks on financial stability. Institutional, legal and organization potential of

banking system of Ukraine and institutional abilities of National Bank of
Ukraine to maintain financial stability of state are analyzed.

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