The impact of global financial crises on the stability of banking institutions

Abstract

The studyʼs relevance is determined by the growing frequency and scale of global financial shocks, which pose new challenges for the banking sector, reduce the effectiveness of traditional risk management models, and require a profound revision of approaches to ensuring financial stability. The purpose of the study is to generalize the impact of global financial crises on the resilience of banking institutions, taking into account changes in risk structures, regulatory environments, and the formation of institutional anti-crisis practices, as well as to develop practical recommendations for enhancing the long-term stability of banks. The research methodology applies a systems approach to analyzing the dynamics of key indicators of banks’ financial resilience under crisis conditions, comparative analysis of regulatory policies, risk scenario modeling, and examination of structural changes in banks’ business models under the influence of crisis events. Official statistical data, analytical reports, and regulatory documents from national and international supervisory bodies were used. The study resultsreflect observed changes in approaches to managing banking institutions' capital, liquidity, and liabilities during crisis periods. The transformation of regulatory oversight models was examined, particularly under the influence of Basel III standards, supervisory technology (SupTech) use, and the temporary softening of regulatory requirements during martial law. The dynamics of capitalization, the share of non-performing loans, the liquidity coverage ratio, and changes in the funding structure were analyzed. The studyʼs conclusions confirm that ensuring the resilience of banking institutions requires regulatory strengthening and a transformation of organizational risk management culture, including diversification of income sources, revision of portfolio management, and development of internal crisis response mechanisms. It has been proven that effective resilience is formed through integrating macroprudential supervision and strategic forecasting. Prospects for further research include modeling an integral index of banking resilience, evaluating the effectiveness of digital supervisory tools, and developing universal adaptive models for banking operations under prolonged instability.