The banking system plays a key role in the formation and development of country's economy, and its condition directly affects the effectiveness of financial interaction between various economic entities. This is due to its functional purpose in the system of economic relations and, first of all, the ability to redistribute free financial resources and generate additional funds for the needs of all participants in these relations - the state, economic entities, households. During the time of independence, the banking system of Ukraine went through a difficult times of formation and development, the last period of which was characterized by its radical restructuring and renovation. The purpose of this transformation was to ensure the reliability of the functioning of the banking system, the ability to resist various threats, the minimization of its activity risks for the undisputed fulfillment of obligations to bank clients and continuously providing financial services. It is quite obvious that the fulfillment of those goals is impossible without ensuring the financial stability of the banking system, which is understood as the ability to ensure equilibrium in the long run by counteracting/adapting/absorbing internal and external shocks based on the use of a proactive approach to identifying and managing threats to the functioning of the bank over time; maintain the continuity, efficiency and financial effectiveness of operation; ensure sustainable targeted financial development through early adaptation to the objective transformations of the economic environment by comprehensive integration of risk-oriented approach and the use of the newest methods to manage the bank in terms of all its business processes [1, p.70].

No abstract

The article examines the economic nature of the concept of "significant risk", which is proposed to be interpreted as a banking risk, which in its quantitative and qualitative parameters is characterized by a non-zero level of materiality, and its realization is guaranteed to reduce capital adequacy. The classification of the types of significant bank's risks has been improved. Regulatory, quantitative and qualitative methods of significant risks identification are considered. It is substantiated that this process should be based on the use of a differentiated approach, namely: identification of the significance of the bank's risks in terms of business lines and certain types of financial products, as well as provide a comprehensive approach to identifying significant risks and assessing their materiality. The relationship between the significant risks of the bank and its financial stability is illustrated by a logical-process scheme.

The concept of financial stability of banks as a complex and multifaceted category, the content of which is constantly enriched, has been developed. Approaches to determining the financial stability and financial stability of banks, in particular, are considered. It is noted that modern operational, functional, institutional, technological features of banks cannot but affect the content of their financial stability and update the mechanisms for its ensuring. Emphasis is placed on the need for early adaptation of banking institutions to objective transformations of the economic environment through the integration of risk-oriented approach and the use of advanced methods of bank management in all its business processes. The level of financial stability of banks in Ukraine is monitored, for which the main volume indicators of their activity and the Bank Z-score indicator calculated by the World Bank are analyzed. The analysis of indicators of banks’ penetration into the economy shows that the development of the banking sector lags behind the needs of the real sector, so its financial stability is relative, although there are trends to strengthen it. The constant increase in the capital base of Ukrainian banks and their compliance with capital adequacy ratios is particularly positive. However, the quality of banks’ loan portfolios is unsatisfactory, which poses a threat to their financial stability, even given the large amounts of formed provisions for loan impairment. The dynamics of financial stability indicators calculated by the National Bank of Ukraine confirms the existence of prerequisites for its long-term provision, despite the difficult environmental conditions. The directions of monitoring of financial stability offered in the article allow diagnosing its deterioration in time to prevent critical consequences for the national economy.

Стаття присвячена актуальним питанням визначення напрямів впровадження ESG-стратегії в бізнес-моделі комерційних банків з урахуванням екологічних, соціальних та управлінських ризиків, поглиблених сучасними кризовими явищами. Основними результатами дослідження є: обґрунтування необхідності врахування ESG-ризиків в системі ризик-менеджменту банків, впорядкування підходів до систематизації методологій та інструментів, які дозволяють оцінити поточний та майбутній вплив ESG-факторів на сталий розвиток банків, оцінка сталості українських банків на основі Індексу ESG прозорості та етапізація процесу впровадження ESG-стратегій в бізнес-моделі банків з урахуванням актуальних аспектів управління ESG-ризиками.