Structural and risk-oriented determinants of the liquidity coverage ratio in the mechanism for ensuring the stability of the banking system of Ukraine

Abstract

The purpose of this study is to develop a dynamic econometric model for assessing the impact of structural, risk-oriented, and monetary factors on the formation of the Liquidity Coverage Ratio of the banking system of Ukraine under conditions of transformational shocks and structural restructuring of the financial sector. The main findings indicate that the level of the LCR is shaped by the configuration of the resource base, the structure of assets, the quality of the loan portfolio, the degree of capitalization, and the parameters of monetary policy. The principal conclusions suggest that the stability of the banking system is determined not by the mere maximization of liquidity per se, but by the structural optimization of balance sheet parameters within a controlled risk environment.