Financial stability in the system of state financial security at the present stage

Abstract

financial stability occupies a key place in the system of state financial security, as it ensures the resilience of the financial system, the continuity of financial intermediation, the balanced allocation of financial resources, and the economy’s capacity to withstand internal and external risks. Under martial law, global financial turbulence, digital transformation, and the increasing role of the state in the redistribution of financial flows, there is a growing need to rethink the essence of financial stability, its place in the system of financial security, and the mechanisms for ensuring it at the present stage. The purpose of the study is to theoretically generalize approaches to the interpretation of financial stability, substantiate its relationship with the type of financial system, and determine the role of key channels for allocating financial resources in ensuring the financial security of the state.

To achieve this purpose, the study applies a systemic and structural approach, methods of theoretical generalization, comparative analysis, institutional analysis, and logical modelling. This made it possible to consider financial stability as a multidimensional category that combines monetary, banking, budgetary, institutional, and macroprudential aspects. The article generalizes direct, inverse, and mixed approaches to defining financial stability and reveals its relationship with systemic risks, financial intermediation, price stability, and the ability of the financial system to support the real sector of the economy.

The results of the study consist in clarifying the essence of financial stability as a state of the financial system in which, taking into account its established institutional configuration, it is capable of ensuring the efficient and even allocation of financial resources through its inherent key channels. It is proved that financial stability cannot be assessed in isolation from the type of financial system, since the structure of financial intermediation and the ratio between banking, budgetary, investment, and market channels determine the nature of resource allocation and the level of state financial security. For Ukraine, the coordination of monetary and budgetary drivers of financial stability is of particular importance.

The conclusions substantiate the need to develop a modern approach to ensuring financial stability, taking into account the specific features of Ukraine’s financial system, the impact of the wartime economy, structural imbalances, and the needs of post-war recovery. It is proposed to consider the balanced growth of financial resources across all links of the financial system as an important indicator of financial stability.