Implementation of a mechanism for ensuring the security of the banking system based on innovative metaspace technologies

Abstract

The paper explores the transformation of the financial risk structure and the features of ensuring the stability of the banking system under conditions of rapid digitalization, economic instability, and martial law. The study emphasizes that traditional banking supervision tools are insufficient in the digital economy, requiring a transition to innovative metaspace technologies. The author proposes a comprehensive, integrated mechanism for banking security based on digital platforms, intelligent data management, and cyber defense. This mechanism structurally consists of four interrelated instruments: financial (liquidity support, stress testing), organizational (risk management, mitigating the human factor in cybersecurity), technological (biometric authentication, cloud services, automated financial monitoring via Big Data and Blockchain), and institutional (state regulation, NBU policies, and international information exchange on cyber incidents). Utilizing statistical data from the Ukrainian banking sector for the period of 2018–2025, the research highlights positive stabilization trends driven by digital adaptation. Specifically, it analyzes the restoration of bank profitability after the 2022 downturn, a significant reduction in non-performing loans (NPL) from over 52% to 28.1% by 2025, and an increase in capital adequacy above 23%. The practical value of the proposed mechanism lies in enhancing the resilience of financial institutions to hybrid cyber threats and external shocks.