Assessment of financial stability of banks according to the srep system: foreign and national experience

Kovalenko Victoria
D.Sc. (Economics), Professor, Professor, Department of Banking, Odesa National University of Economics, Odesa, Ukraine, E-mail: kovalenko-6868@ukr.net, ORCID: https://orcid.org/0000-0003-2783-186X

Masiuk Victoria
student of the first (bachelor's) level of higher education, Faculty of Finance and Banking, Odesa National Economic University, Odesa, Ukraine, E-mail: vika.masuyk@gmail.com, ORCID: https://orcid.org/0009-0003-5422-7227

Received: 07.06.2025    Аpproved: 25.06.2025    Рublished online: 25.07.2025

Cite this article:

Kovalenko V., Masiuk V. (2025) Assessment of financial stability of banks according to the srep system: foreign and national experience. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Ocinjuvannja finansovoi stijkosti bankiv za systemoju srep: zarubizhnyj j nacionalnyj dosvid.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 6 (331), pp.35-44.

Abstract

The article reveals the essence of financial stability as an economic category and examines the theoretical and practical aspects of assessing the financial stability of banks in conditions of macroeconomic instability based on the risk-based SREP methodology, which was introduced in Ukraine in the context of harmonization with European standards of banking supervision. The purpose of the study is to determine the theoretical principles of assessing the financial stability of banks within the framework of the SREP system, as well as review foreign experience of its practical application in order to form methodological recommendations for improving domestic supervisory practice. The research methodology includes an analysis of domestic and international regulatory sources, a comparison of European and Ukrainian practice of applying SREP, a generalization of the results of supervisory inspections, as well as the use of elements of structural and logical analysis to identify key problems and prospects for the development of assessing the financial stability of banks in conditions of uncertainty. The study identified the main components of the SREP assessment, outlined the advantages of its use compared to traditional methods, identified problems during the implementation of the methodology in Ukraine (human resources, institutional, regulatory), analyzed the results of the assessment of banking stability in the EU countries and Ukraine, and provided proposals for improving national practice. Special attention was paid to the assessment of bank business models, capital adequacy, the role of stress testing and inspections. Future research directions should be focused on further modernization of stress tests, digitalization of supervision, and implementation of European standards, in particular through the introduction of countercyclical capital buffers.

Keywords

financial stability, SREP, risks, banking supervision, capital, business model.

JEL classification: G210; G280; G320; E580;DOI: https://doi.org/10.32680/2409-9260-2025-6-331-35-44

UD classification: 336.717.061:005.334(100+477)

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