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Research background: As part of the creation of an effective mechanism for managing financial stability, the tasks of providing an inter-level and cross-sectoral financial equilibrium remain unresolved. So far, clear and unambiguous criteria for financial stability have not been formulated, with which monetary and prudential policies could be related, as well as measures to minimize systemic and individual risks. The problem of creating a system of indicators comes to the fore, allowing the creation of new effective instruments for regulation of financial flows that contribute to the prevention of financial crises. Purpose of the article: The paper proposes a system of indicators of financial stability, which allows for solving the tasks of inter-level and cross-sectoral equilibrium in the selection of regulatory tools for monetary and prudential policy. Methods: We have used real interest rates as a measure of financial stability at the macro level. The real rates have been calculated from time series with nominal interest rate and inflation in the credit market (divided into loans to financial and non-financial organizations and individuals), and in the bond market (divided into corporate, municipal, and federal bonds). The analysis of the market and institutional financial stability of the USA, Russia, Japan, Switzerland, Australia over the period 1984–2014 was done. Then, comprehensive investigation on the financial stability in the Russian Federation in 2014–2017 was conducted. The results have been compared against financial stability of individual banks, which was measured using profit to risk ratio. The latter has been calculated from bank’s financial reports using our method, which had been developed earlier. Findings Value added: We have developed criteria for qualitative assessment of financial stability and the risk map, which helps to identify the level of accumulated imbalances in the market and institutional environment, as well as in the levels and sectors of the economy. The criteria for selecting monetary and prudential regulatory instruments have been formulated depending on the amount of accumulated risks. The criteria for forming a portfolio of regulatory instruments with regard to their rigidity are proposed.

The article provides a solution to the problem of the financial stability for small and medium-sized businesses in a crisis economy. To ensure the idea of the company development, the authors of the present study relied on the situational approach which defines management as specific circumstance that requires adequate actions to solve it. The purpose of the research is focused on the practical aspects of making managerial decisions in the conditions of a crisis economy to ensure the financial stability of medium and small enterprises (SMEs). For this, the methods of analysis and syn-thesis, expert evaluation, fuzzy logic, and the situational approach were used. This article focuses on the three main reasons, including: i) increase in the risk of financial stability losses by small and medium-sized companies, 11) insufficient use of analytical and information technologies, Hi) the complexity of decision-making in conditions of crisis and uncertainty. The research was carried out in the following areas: 1) analysis of risks to the financial stability of companies associated with crisis phenomena in the economy, 2) assessment of the risk of financial stability loss based on the method of fuzzy logic, 3) formation of the configuration of management decisions to ensure the financial stability of the company in the conditions of a crisis economy based on the situational approach. The results revealed the relevance of the research and the reliability and sustainability of the research tools. Based on the results, the most important problems of the companies were identified, an approach to assessing the risk of losing financial stability by the company was proposed based on the method of fuzzy logic, and practical recommendations were given on how to determine the configuration of managerial decision-making based on the management determinants. Empiricaliy, this paper uses two test samples: companies in Ukraine and those in Montenegro.

Taking a unified approach to studying nonprofit financial health, this research tackles a key question that has remained unexplored in the literature: \"What lies at the intersection of the two key dimensions of financial health—financial stability and financial growth?\" Specifically, we identify and compare nonprofits that exhibit high levels of financial stability and growth (high financially performing) to those that exhibit low levels (low financially performing)? Overall, we find that high financial performers (HFPs) tend to be older and larger organizations (in terms of unrestricted net assets and total revenue). HFPs are also more likely to report capital assets, and report high levels of compensation. Finally, HFPs tend to contain their overhead spending by exercising efficiency by investing in talented officers (paying more than the rest), but limiting the share of officer compensation, administrative, and fundraising expenses, as a percentage of total expenses. The results of the study should be informative to stakeholders attempting to understand the profile of an organization that is successfully able to achieve both capacity growth and financial stability. En adoptant une approche unifiée pour étudier la santé financière du secteur sans but lucratif, cette recherche porte sur une question clé toujours inexplorée : « Que trouve-t-on à l'intersection des deux dimensions essentielles de la santé financière, soit la stabilité financière et la croissance financière? » Nous avons précisément identifié et comparé des organismes de bienfaisance affichant un haut niveau de stabilité et croissance financières (fort rendement financier) à d'autres au niveau plus bas. Nous avons découvert qu'en général, les organismes performants ont tendance à être plus vieux et de plus grande taille (en termes d'actifs nets non restreints et de revenus totaux). Les organismes performants rapporteront aussi plus vraisemblablement leur valeur immobilisée et des taux de rémunération plus élevés. Ces organismes limitent enfin leurs dépenses générales en faisant preuve d'efficacité et recherchant des représentants talentueux (payant plus que les autres), mais en restreignant les frais de rémunération et administratifs et les dépenses de campagne de financement comme pourcentage des dépenses totales. Les résultats de l'étude devraient informer les intervenants tentant de cerner le profil d'un organisme qui réussit à être viable en termes de croissance et de stabilité financières. Diese Studie befasst sich mithilfe eines einheitlichen Ansatzes zur Untersuchung der finanziellen Gesundheit gemeinnütziger Organisationen mit der in der Literatur bislang nicht ergründeten wichtigen Frage: „Was liegt am Schnittpunkt der zwei Schlüsseldimensionen der finanziellen Gesundheit, d. h. am Schnittpunkt der finanziellen Stabilität und des finanziellen Wachstums?“Dazu ermitteln wir gemeinnützige Organisationen und vergleichen diejenigen, die ein hohes Maß an finanzieller Stabilität und finanziellem Wachstum aufweisen (finanziell leistungsstarke Organisationen), mit denen, die durch geringe finanzielle Stabilität und geringes finanzielles Wachstum gekennzeichnet sind (finanziell leistungsschwache Organisationen). Insgesamt stellen wir fest, dass finanziell leistungsstarke Organisationen in der Regel älter und größer sind (mit Hinblick auf das uneingeschränkte Nettovermögen) und vergleichsweise mehr Kapitalvermögen und hohe Vergütungen ausweisen. Finanziell leistungsstarke Organisationen können ihre Gemeinkosten häufig begrenzen, indem sie effizient in erfahrene Führungskräfte investieren (wobei sie mehr als andere zahlen), jedoch den Anteil der Kosten für die Vergütung von Führungskräften, für die Verwaltung und für die Mittelbeschaffung auf einen prozentualen Anteil der Gesamtaufwendungen begrenzen. Die Ergebnisse der Studie dürften für Stakeholder interessant sein, die das Profil einer Organisation nachvollziehen möchten, welche erfolgreich Kapazitätswachstum und finanzielle Stabilität erzielt. Asumiendo un enfoque unificado para estudiar la salud financiera de las organizaciones sin ánimo de lucro, la presente investigación aborda una cuestión clave que ha seguido sin ser explorada en el material publicado: \"¿Qué se encuentra en la intersección de las dos dimensiones claves de la salud financiera - la estabilidad financiera y el crecimiento financiero?\" Específicamente, identificamos y comparamos a las organizaciones sin ánimo de lucro que exhiben niveles elevados de estabilidad y crecimiento financieros (rendimiento financiero elevado) con aquellas que exhiben bajos niveles (rendimiento financiero bajo). En general, encontramos que las organizaciones con mejor rendimiento financiero (HFP, por sus siglas en inglés) tienden a ser organizaciones más grandes y más antiguas (en términos de activos netos e ingresos totales no restringidos). También es más probable que las HFP notifiquen activos de capital y niveles elevados de compensación. Finalmente, las HFP tienden a contener sus gastos generales mediante el ejercicio de la eficiencia invirtiendo en directivos con talento (pagando más que el resto), pero limitando la parte de los gastos de compensación del directivo, administrativos y recaudación de fondos, como porcentaje del gasto total. Los resultados del estudio deben ser informativos para las partes interesadas que traten de comprender el perfil de una organización que es capaz de lograr de manera satisfactoria tanto el crecimiento de la capacidad como la estabilidad financiera.

This study aims to develop a financial stability index for the Pakistani financial sector by using the financial reports for the period of 2001-2011. Specifically, we constructed three different classes of indices in this study based on a variance-equal weighted approach, a linear probability approach, and a logistic approach. We also assessed the prediction accuracy of the financial stability index. All indices indicated that profitability, liquid liability to the liquid asset, non-performing loan, uncovered liabilities, interest spread and inter-fund to liquid liabilities variables contribute significantly to the determination of financial stress of commercial banks. We also compared the results of indices computed with different methodologies-among them was the index constructed by employing coefficients of the logistic model and which performed outstandingly in predicting distressed and non-distressed banks. Moreover, the findings of this study suggest that in regard to return on assets and return on equity, when employed in a stepwise manner for developing the financial stability index, the results are similar in the sense that both profitability indicators have the same behavior. Finally, we conclude that the financial stability indices developed in this study could help decision makers to detect and avoid instability in the future.

The article examines the methodology of assessing bank’s financial stability. It is researched scientific evolution of financial stability nature definition, discerning endogenous and exogenous approaches. It is proved that financial stability simultaneously feels effect from endogenous and exogenous factors and it should be taking into consideration while managing financial stability of a bank, as well as assessing its level. It is grounded a set of requirements while constructing methodological approach for assessing bank’s financial stability that are as follows: it is necessary to form a set of indicators that would allow to characterize the bank’s activity in complex; it is important to consider the dynamic nature of financial stability; it is significant to take into account how any indicator effects on the bank’s financial stability. It is proved taxonomy method as an effective technology of processing quantitative indicators of bank’s financial stability. We propose to normalize values of indicators by the Euclidean distance tool in order to figure out their deviation from the determined standard values. It is proposed to use a set of indicators for assessing the bank’s financial stability, that are grouped as follows: 1) the quality of capitalization; 2) the level of liquidity; 3) quality of assets; 4) risk-validity of business activity; 5) currency risk;6) credit risk; 7) profitability; 8) operational risk; 9) interest rate risk; 10) factors of the macroeconomic environment. In general, it is proposed to use thirty-eight indicators which are presented by point and dynamic ones. Practical approbation of the proposed methodological approach is carried out on the example of systemically important banks of Ukraine. The purpose of the article is to improve methodology of assessing bank’s financial stability using taxonomy approach. The proposed method, in contrast to the existing ones, provides: 1) flow method construction of a set of indicators; 2) implementation of point and dynamic indicators; indicators-stimulators / destimulators and of a mixed type; 3) indicative consideration of macroeconomic environment factors. The application of such an approach allows to comprehensively determine the level of bank’s financial stability and to quantify the impact of the macroeconomic environment on it. Keywords: bank’s financial stability, taxonomy method, dynamic indicator, integrated index of bank’s financial stability, normalization of indicators, indicator-stimulator, indicator-destimulator. JEL Classification C13, C81, D53, G21, G23 Formulas: 6; fig.: 1; tabl.: 2; bibl.: 32.

The article summarizes arguments and counterarguments within the framework of a scientific discussion concerning the methodological ensuring for assessing the financial stability of insurance companies. The main purpose of the conducted study is indexes arrangement by which it is possible to assess the financial stability of an insurance company in accordance with the criteria (factors, sources) of its ensuring. Systematization of literary sources and approaches for solving the problem in managing the financial stability of an insurance company to ensure its stable development has shown that this issue remains unresolved to the full extent and requires detailing and indexes arrangement that can be used to assess the financial stability and determine its level. Actuality in solution of this scientific problem lies in the fact that financial stability of insurance companies is an important precondition for their survival in modern conditions, a factor of providing the insurance protection and maintaining the achieved standard of living of the population, full and timely performance of insurance obligations, effective and competitive functioning of the insurer in the future. In the article studies on the management of the financial stability of an insurance company on the basis of indexes arrangement of its assessment are performed in the following logical sequence: characteristic of the main tendencies in the development of the insurance market of Ukraine in recent years is outlined; the necessity of management of the financial stability of insurance companies is grounded in order to ensure their sustainable economic development; approaches to the definition in the essence of the financial stability of an insurance company are considered and the definition by Ukrainian researcher N. V. Tkachenko is adopted as the basis. On the basis of the analysis of recent scientific publications, theoretical and methodological developments by modern researchers, the authors of the article selected six groups of criteria for ensuring the financial stability, according to which the ratios for assessing the financial stability of insurance companies of these participants in financial markets are systematized and methodologically substantiated. The results of the research can be useful for managers and staff of insurance organizations, government oversight of insurance activities, teachers of economic specialties. Keywords: financial stability, insurance company, methodological approaches, assessment of financial stability. JEL Classification C1, G22, O16 Formulas: 0; fig.: 0; tabl.: 5; bibl.: 20.

The aim of this paper is to examine the impact of selected macroprudential policy instruments on financial stability. We focus on six euro area economies (Belgium, Cyprus, Germany, Spain, Ireland and the Netherlands) over sixteen quarters (from 2015 Q1 to 2018 Q4) by using the research method of panel econometrics. The following three banking sector aggregate balance sheet variables exhibit the expected impact on credit growth and cyclical fluctuations of the economy: common equity tier one ratio, coverage ratio, and interconnectedness ratio. Moreover, common equity tier one ratio, loan-to-deposit ratio, and leverage ratio exhibit the expected impact on house price growth. Based on our empirical findings, a case can be made for the usage of carefully crafted macroprudential policy instruments that target selectedfinancial and macroeconomic variables with the ultimate goal of attaining the stability of the financial system as a whole.

The article investigates approaches to the interpretation of the notion \"financial stability\" and the features of its assessing as an important instrument of macroprudential financial supervision. It is emphasized that the existing tools for assessing the financial sector stability have their advantages and disadvantages, which are defined by the authors. In the paper there applied the method of convolution of criteria to assess financial stability in Ukraine. The calculation of the composite indicator is based on values of financial soundness indicators determined by the IMF, which for the purpose of the research are divided into three groups. As a result the indicator of financial stability includes the components of capital adequacy, credit risk and liquidity. It allows using the regression procedure for evaluation of the influence of these components on financial stability of the country. The interpretation of the results indicate that raising the level of financial stability in Ukraine requires, first, improving approaches to managing credit risk, then increasing liquidity rates and, ultimately, improving the capital adequacy of financial intermediaries.

The financial system stability is an important issue to be evaluated and controlled in order to withstand the threat of a crisis that may occur in Indonesia. Bank Indonesia has constructed Indeks Stabilitas Sistem Keuangan (ISSK) to respond the issue, but ISSK is not considering global economy effect into the index construction. While there is another measurement called Aggregate Financial Stability Index (AFSI) that capable to consider both global economy and ISSK dimensions. However, each dimension is considered to have the same contribution to AFSI, despite the contributions are different in fact. Therefore, this research aims to construct AFSI using Change Point Analysis (CPA) on weighting stage for showing that each dimension has different contribution. The constructed AFSI was good and was able to capture crisis period that occurred in Indonesia during the research period. In addition, AFSI using CPA also utilized for knowing source of instability in each period using a heatmap. In general, instability that occurred in Indonesia dominantly caused by the vulnerability of financial system. This research also found that each period of crisis always follows by pressure from global economic condition. AFSI using CPA is expected to be an alternative or support measure of ISSK in determining related policies.

The stability of financial relations is one of the conditions for sustainable economic development and creation of conditions for the growth of material production, non-production sphere development and increase of employment, improving social and economic conditions of the population. The need to develop practical recommendations for improving the efficiency of existing financial relations in Ukraine and their coordination with the processes that occur in the real sector of the economy determine the relevance of the study.Purpose of the article is determining the basic principles and refinement of indicators to measure the stability of financial relations and, on this basis, assessment of the stability of financial relations in Ukraine.The study is focused on the formation of practical recommendations to improve the effectiveness of existing financial relations in Ukraine, and their coordination with the processes that occur in the real sector of the economy. It has been proved that the stabilization of financial relations is formulated as the process of achieving the state of balance and equilibrium in financial resources market at high (enough) level of demand and supply. Methodological, theoretical, normative and generalized approaches to determining the stability of financial relations have been outlined. Evaluation of factors influencing the stability of financial relations has been made at the stage of actual GDP formation (as the basis of financial relations), the formation of primary incomes and formation of gross disposable income of institutional sectors relative to GDP. Potential risks of destabilizing financial relations in Ukraine have been identified. System parameters of early warning of instability based on the definition of key macro shocks to the stability of financial relations has been outlined.One of the biggest factors promoting economic development is the stabilization of financial relations — a set of parameters, factors and measures to achieve an optimal equilibrium in financial resources. Further research will study ways to stabilize financial relations in Ukraine.