THE ROLE OF BANKING SECTOR FOR STATE’S FINANCIAL STABILITY

In terms of global economic disparities caused by financial market instability, the problem of financial security of every state becomes of primary actuality. As being the key intermediary between real and financial sector, banking sector plays an incontestable role in preserving external financial shocks and ensuring the financial security of the state in order to protect the entire economy the consequences. In order to elucidate the domestic banking system efficiency in the distribution of funds in the economy and ensuring stability of the state is analyzed and characterized the evolution of the main banking indicators. As results are determined the main threats regarding the security of the banking sector and measures to reduce their impact are given conclusions and recommendations for minimizing the influence of risk factors.