What hinders the stability of the banking system

Abstract

Banking crisis is a concomitant process of a market economy. It is difficult to name a country that has not experienced crisis processes in the banking sector with varying degrees of severity. Any kind of shock arising in this sector is especially dangerous for an emerging market economy, as it can paralyze the payment system, negatively affect the exchange rate of the national currency. In addition, it can also lead to an aggravation of the political situation.