THE NEED FOR AND INTERNATIONAL EXPERIENCE IN ASSESSING THE FINANCIAL STABILITY OF THE DEPOSIT GUARANTEE SYSTEM

Introduction. In today's dynamic world, where financial systems face constant challenges and risks, stress testing is becoming an essential tool for assessing resilience and identifying potential weaknesses before they lead to crises. In the context of deposit insurance systems, stress testing plays a particularly important role in protecting the stability of the financial sector and preserving the safety of depositors' funds. Objective. The purpose of the study is to reveal conceptual approaches to justifying the feasibility and review the world experience of assessing the financial stability of the deposit insurance system based on stress testing. Materials and methods. The research materials are: 1) EU and IADI Directives; 2) works of domestic and foreign authors conducting their scientific and practical research in the field of assessing the financial stability and stress testing of deposit insurance systems. In Ukraine, due to the large number of banks declared insolvent, there is a need for a deposit insurance system that ensures financial stability and growth of citizens' deposits. Stress testing models are an important tool for monitoring financial stability, as they allow assessing the likelihood of financial institutions being in a vulnerable state and provide the resolution authorities with information on the overall state of the financial system. It is important to consider not only internal, but also external factors that affect the resilience of the deposit insurance system. Highlighting international experience in this context helps to identify best practices and approaches to assessing and preventing financial risks. Results. The article substantiates the need for and approaches to stress testing the financial stability of the DIS, taking into account international experience and recommendations of the EU and IADI. It is noted that the development of effective approaches and models of stress testing will help to increase the financial stability and reliability of the deposit insurance system in order to minimise the risk of a decrease in funds to cover possible reimbursements and replenish the DIS. Based on the analysis of foreign experience, the author emphasises the need to improve methods and approaches to stress testing to improve the financial stability of the Ukrainian deposit insurance system. Prospects. In general, consideration of the international experience of approaches to stress testing financial stability allows us to conclude that this issue is relevant in the face of uncertainty and that further research is needed to ensure the financial stability of deposit insurance systems, which will help ensure financial stability and confidence in banks. This is especially important given the lack of such an approach in domestic practice.