D.Sc. (Economics), Professor, Professor of the Department of Banking,
Odesa National Economic University,
8 Preobrazhenskaya Str., Odesa, 65082, Ukraine
kovalenko-6868@ukr.net
Arina Plotnikova
Specialty D2 «Finance, Banking, Insurance and Stock Market», educa-tional degree “Master”.
Odesa National Economic University,
8 Preobrazhenskaya Str., Odesa, 65082, Ukraine
arinaplotnikova23@gmail.com
MONETARY POLICY AND ITS IMPACT ON ENSURING THE FINANCIAL STABILITY OF BANKS
Abstract. The article establishes that the primary prerequisite for sustainable economic growth in each country is the assurance of financial stability among participants in the financial market. At the current stage of dynamic development of global banking systems, a crucial issue is the improvement of mechanisms for ensuring their financial stability, which serves as a key factor in developing strategies for the sustainable financial development of the banking system. The crises of recent decades have triggered a significant response in global and national financial markets regarding the implementation of effective tools for maintaining financial stability in banks. This underscores the need to identify approaches for creating a functional system to support financial stability. This study ex-plores the relationship between monetary policy and the financial stability of the banking sector, as well as the specific actions taken by the National Bank of Ukraine that influence the achievement of its strategic objectives. The research aims to substantiate the actions of regulatory authorities in applying monetary policy instruments to fulfill the goal of financial stabi-lity. The logical structure of the research includes an evolutionary review of monetary policy objectives and the identification of financial stability as a critical factor influencing the strategic directions of sustainable na-tional economic development. The article presents an overview of inter-national practices in using monetary policy tools to support the financial sector in the context of cyclical crises, specifically the 2008 financial crisis and the COVID-19 pandemic. Further, an analysis was conducted using the example of Ukraine, demonstrating how decision-making trajectories regarding the operation of the monetary transmission mechanism have evolved to ensure the financial stability of the banking sector as a foundation for national economic growth. For this purpose, a comparative characteristic of the effectiveness of the monetary transmission mecha-nism was proposed before the introduction of martial law in Ukraine and during its continuation.
Key words : bank; banking system; monetary policy; central bank; monetary policy instruments; crisis; financial stability.
JEL classification: E52,E58,G21