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About Financial Stability

A stable and effective financial system enjoying trust of individuals and businesses is essential for economic development. The NBU promotes financial stability by ensuring that the financial system functions efficiently and is resilient to crises. The regulator takes measures to minimize risks for the entire financial system and helps banks withstand systemic risks.

The NBU is constantly improving the tools it uses to ensure financial stability.

Financial stability comprises the following:
  • The financial system efficiently transforms available funds of households and businesses into loans and investments.
  • The financial system is liquid and well-capitalized, and thus is resilient to crises.
  • Payments and settlements are made on time and in full.
  • Financial market participants are prudent in assessing and managing risks.
  • Difficulties encountered by individual financial institutions do not spread to the entire system.
How does the NBU promote financial stability?

The NBU regularly assesses risks in the financial sector and the economy as a whole and uses the following approaches to achieve financial stability:

  • implementing macroprudential policy
  • supporting banks as the lender of last resort
  • promoting the financial stability of banks (especially systemically important banks)
  • supervising (overseeing) banks and payment and settlement systems
  • stress-testing the banking system and the largest bank borrowers.

To achieve financial stability, the NBU cooperates with other regulators to:

  • prevent crises and mitigate contagion
  • enhance the financial system’s resilience to crises
  • mitigate the consequences of crises.
Who Influences financial stability?

Financial stability depends on the actions and decisions of all financial market regulators:

  • the National Bank of Ukraine
  • the Ministry of Finance of Ukraine
  • the National Securities and Stock Market Commission
  • the Deposit Guarantee Fund.

The parliament of Ukraine, the Cabinet of Ministers of Ukraine, and other authorities also influence development and sustainability of the financial system.