Economic capital and its role in ensuring the financial stability of the bank

Abstract

The object of research is the process of determining the size of a bank's economic capital. The subject of research includes the theoretical and methodological foundations and applied provisions for improving the organizational and economic mechanism for calculating economic capital. The purpose of the qualifying master's thesis is to theoretically substantiate the concept of "economic capital," determine its role in a bank's operations, and develop practical recommendations for its effective calculation and use. According to the results of the study, theoretical and practical provisions were formulated and translated into specific proposals for improving a bank's economic capital management system. The obtained results can be used to develop methodological principles for calculating economic capital in Ukrainian banks to enhance their financial stability.