Publication Details
Abstract
This article scientifically analyzes the main factors and its indications, management methods of new generation and management process mechanisms for ensuring the financial stability of commercial banks. The need for improving banks financial stability in terms of growing competition at global financial markets, economic uncertainties and fast development of different technologies is argued. Scrutinising the financial health status of a bank provides a better idea of a bank through parameters such as Capital Adequacy Ratio (CAR), Liquidity Coverage Ratio (LCR), bad loan ratio, net profit, net profit margin (NPM), ROA, ROE and NIM, the loan to deposit ratio. It examines their implications for the financial stability as well as their consistency with international requirements focusing on Basel III standards. The article presents a step-by-step description of strategic approaches to bank stability improvement through capital increase, liquidity management, nonperforming loan reduction, comprehensive risk management, introduction of digital technologies, corporate governance improvement and establishment of income diversification. In general, the article combines theoretical and practical solutions in achieving financial stability of commercial banks and presents journal scientific conclusions and practical recommendations contributing to ensuring the banking system stability.