ROLE OF LIQUIDITY IN PROVIDING BANK STABILITY

Background. Despite the variety of definitions of banking liquidity, the latter is often simplified because of insufficient attention to some aspects and exaggeration the importance of other. That is why there is an urgent necessity to develop the concept of banking liquidity, which would describe the category as full as possible. The purpose of the article is to create the definition of banking liquidity and justify its role in providing the stable functioning of a bank. Results. The analysis of different perspectives on the concept of banking liquidity and determining the differences between banking liquidity and banking solvency make it possible to formulate the following definition of banking liquidity. Banking liquidity is its ability to completely fulfill all obligations in the required currency and at the appropriate time without breaking the internal and external regulatory requirements due to the balance sheet structure and ability to finance growth in the credit portfolio, in particular with the help of external borrowing. Conclusion. As can be seen from the definition, the banking liquidity is directly linked to its reputation, and therefore ? plays a key role in ensuring the stability of its functioning.