Proceedings of the International scientific and practical conference ―Modern Research and Education‖ (May 2-4, 2026) / Publisher website: www.naukainfo.com. – Warsaw, Poland, 2026. - 523 p.

34 condition of the banking system, as well as circumstances that threaten the stability of the banking and/or financial system of the state. It is worth noting that at present, the issue of ensuring financial stability is one of the main tasks of the country's economic policy and is of an urgent nature for any government in power. That is, the uninterrupted, stable, crisis-free, dynamic and predictable development of the financial system is of primary importance, as it affects the general economic situation in the country, the level of income and well-being of citizens. Studying this term, we come to the conclusion that each scientist gives his own definition - "financial system stability", based on the purpose and specifics of the study. Financial institutions act similarly. Thus, the Deutsche Bundesbank believes that financial stability describes a stable state in which the financial system effectively performs its key functions, in particular the allocation of resources and risk reduction, as well as the execution of payments. The Bank of the Czech Republic interprets the concept of financial stability as a situation when the financial system operates without significant defects or undesirable effects on the current and future development of the economy as a whole, which indicates a high degree of system resilience to shocks. The Bank of Poland believes that financial stability and the stability of the financial system are actually identical. The stability of the financial system is understood as a situation when the system continuously and effectively performs all its functions, even in the face of unexpected and negative shocks. The Bank of Norway defines financial stability as the absence of crises in the financial system, that is, the resilience of the financial sector to shocks that arise in the activities of financial institutions or the financing of financial markets. Summarizing the above definitions, it can be stated that financial stability is considered from the perspective of the resistance of the national currency to internal and external influences, the level of employment of the population close to or close to the optimal level, taking into account the employment rate in the economy, the confidence of economic entities in financial markets and institutions, and the absence of relative fluctuations in prices for real and/or financial assets.