Reliable Risk Management is a Factor for Ensuring the Stability of the Banking System

Abstract

Stability and sustainability are the two factors that plays an influential role on the strategic development of social and political life. Especially sustainability, as an integral part of economic development, predetermines the reliability and regularity of the banking and financial sector. Because in the overall management plan of the banking system the issue of ensuring the stability of the banking system in any conditions of economic development takes a priority place. In general, risk management is considered the most important attribute of banking activities. Because it ensures stable and sustainable functioning of banking system. However, sustainability and stability in the period of fluctuations in economic development can become relative. This is primarily due to the interconnectedness and integration processes of the economic life of the world community.