Abstract: The development of the country’s economy and the improvement of the market mechanism of functioning necessitates the transformation and improvement of the banking system. In this aspect, the main task is to ensure the stability and reliability of banking institutions that serve the economic processes in the country.

Modernity imposes strict conditions on banks that will allow them to meet the criteria of a reliable and stable financial intermediary. In addition, banks operate under the influence of many factors, which ultimately determine the ability of the latter to meet the requirements for reliability and stability. Since banks serve most of the cash flows in the country and are directly involved in the formation of the money supply, negative fluctuations in their activities immediately affect the state of all economic entities. This makes it necessary to study the assessment and reliability of banks.

The article reveals the economic meaning of the concept of “bank stability” and shows its relationship with such categories as “stability”, “liquidity”, “solvency”, “competitiveness”; the factors influencing reliability and stability of banks are investigated, and also character of their influence is defined; the indicators of financial stability of the banking system of Ukraine were assessed. Deficiencies in the organization of banks and their impact on the country’s economy have been identified.

It was found that the banking system plays an important role in the formation of gross national and domestic product, as it reflects the redistribution of funds between economic entities. The directions of activation of the banking system in Ukraine as an integral part of the national economy have been identified.