ESSENCE OF BANK FINANCIAL STABILITY AND METHODS OF ITS EVALUATION: THEORETICAL ASPECTS

Since the efficient operation of banks is the basis for the effective functioning of the economy, evaluating the financial stability of banks is necessary in order to prevent problems in the banking system, without which today it is impossible to ensure neither business nor the functioning of the state. The article deals with the study of theoretical approaches to the interpretation of the essence of the economic category “financial stability of the bank”. On the basis of the generalization of the economists' opinions, the essence, content and result as the integral parts of the interpretation of the financial stability of the bank are distinguished and the author's definition of the category is proposed. Consequently, the main indicators that need to be calculated to assess the financial stability of the bank are indicators of liquidity, solvency, profitability, and balance of financial flows, structure of financial resources and the level of risks. Particular attention is paid to analyzing existing methods for assessing financial stability of the bank. In particular, the essence of the main ones was identified, the result of the evaluation and the shortcomings of the methods were analyzed. The most frequently used method of evaluating the financial stability of the bank is the method of financial ratios. According to the results of the ball assessment, the highest score — 4 — has received a method of integrated assessment of banks activity taking into account the risks of depositors. The disadvantage of this method is precisely the failure to take into account the risks of the bank (not the risks of depositors). It is advisable to evaluate financial sustainability not only on the basis of financial reporting data, but also using market data to take into account risks' factors and assess their impact on financial stability of the bank. This will allow a comprehensive approach to managing the financial stability of the bank.