Semen Blahun

The functioning of the country’s banking system is the basis for ensuring its economic development and stability. The state of the banking system often causes financial crises; therefore, ensuring its stable work is one of the main tasks of monetary policy. Meanwhile, it is important to find approaches to a comprehensive assessment and forecasting of the stability of the banking system that would allow obtaining adequate results.
Based on a sample of data generated for the period from 2008 to the 1st quarter of 2020 with a quarterly breakdown, an integrated stability index of Ukraine’s banking system was estimated. The analysis was based on 23 variables that characterize certain aspects of the functioning of the Ukrainian banking system.
Using the principal component analysis, five factors have been identified that have the greatest impact on ensuring the stability of the banking system. They were used to form an integrated index based on the application of the Mamdani fuzzy logic method. The results obtained adequately reflected the state of stability of the banking system for the analyzed period, which coincided in time with the crisis phenomena occurring in the Ukrainian banking system. The obtained value of the integrated index characterizes the stability of Ukraine’s banking system at the average level, since it depends not only on the internal state of the system, but also on the influence of external factors, both national and international.

Type of the article: Research Article

Abstract
Digital transformation has emerged as a key driver of structural change in labor markets worldwide, especially in the aftermath of the COVID-19 shock. In the European Union, the pandemic particularly accelerated the adoption of digital technologies and remote work across economic activities. This study estimates the causal effect of the digitalization potential of economic activity (proxied by a binary classification into highly and less digitalized groups based on telework feasibility and digital intensity) on three labor market indicators: employment, hourly wages, and remote work. Using the COVID-19 shock as a quasi-natural experiment within a difference-in-differences (DiD) framework, the empirical analysis draws on quarterly panel data for a consistent sample of 27 EU Member States (excluding the United Kingdom) over 2018–2024 (N = 36,685). The results indicate that higher sectoral digitalization potential (telework feasibility and digital intensity) does not significantly affect aggregate employment levels, as evidenced by a near-zero DiD coefficient (0.06, p ≈ 0.98). In contrast, it has a statistically significant positive effect on wages, with a DiD coefficient of 0.52 €/hour (p < 0.001), corresponding to an increase of approximately 4.6% in the wage gap between highly and less digitalized activities. The strongest effect is found for remote work: the DiD estimate is 40.74 percentage points (p < 0.001). Remote work rose from 17.6% to 82.1% in highly digitalized sectors, compared with only 1.3% to 6.6% in less digitalized economic activities.

Acknowledgment
This article was prepared within the framework of the research project “Modelling the impact of economic digitalisation on public health in Ukraine in the context of preserving human capital” (State Registration No. 0126U001085).