banking

The approaches of scientists to the definition of categories “liquidity of banks” and “regulation of the banking system’ liquidity” are investigated. A retrospective analysis of the NBU’s approaches to regulating the liquidity of the banking system was carried out and the use of two main methods used by the NBU to calculate the liquidity level of the Ukrainian banking system during the independence period was identified.

In the market economy, banks act as financial intermediary. On one hand, they want to
make profit, but on the other hand they are called public-trust institutions. Since profit
maximization is not possible without taking risks, that is why risk taking must be controlled.
The activity of banks is therefore supervised by the Commission for Financial Supervision, the
National Polish Bank or Bank Guarantee Fund. Other participants in the economic process
must also have a clear picture of their financial position and management results. In the