Assessment of Factors Influencing the Stability of the Banking System: Experience of the European Union Countries
DOI:
https://doi.org/10.56294/sctconf2024.647Keywords:
banking stability, financial factors of influence, economic crises, regulatory policy, financial integration, risk management, bank liquidityAbstract
Introduction: In modern developed European countries, the banking system reflects the economy's state and financial sector efficiency. Its stability significantly impacts the financial system and economic growth. Banking institutions act as intermediaries between sectors like trade, manufacturing, agriculture, and consumers, underscoring their critical role.
Aim: This study aims to identify factors influencing banking system stability by analyzing the European Union's banking experience.
Methods: A statistical analysis was conducted to determine the key factors affecting stability and prioritize those requiring regulatory focus. The research employed general scientific methods (analysis, synthesis, generalization, systematization) and a specific method—a multiple regression model—to identify factors ensuring financial stability.
Results and conclusions: Findings reveal regional disparities and instabilities in the distribution of major banks across EU countries. This highlights the need for proactive fiscal stability measures. The multiple regression analysis identified significant determinants of banking stability, including capital cost and accessibility, investment activity, financial stability risks, digital security, and data protection. These insights emphasize the importance of targeted regulatory efforts to enhance the EU banking sector's resilience and sustainable growth
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