Mechanisms for Strengthening the Financial Stability of Commercial Banks in International Practice: Adapting Institutional Solutions to National Conditions

This article presents a comparative analysis of the 2021–2025 practices of nine foreign banks and the institutional mechanisms they employ to strengthen financial stability. The study was conducted as part of the author’s doctoral dissertation and examines approaches to addressing previously identified legal and institutional gaps. Each mechanism is assessed against four criteria: institutional proximity, commonality of the problem, empirical validation, and implementation prerequisites. The empirical analysis shows that there is no unidirectional relationship between the level of profitability and its stability: a bank with one of the highest average profitability levels simultaneously exhibited the highest volatility. The findings indicate that, although solutions developed in advanced markets are theoretically well grounded, their implementation requires sophisticated financial infrastructure. The highest degree of applicability was observed in the experience of transition economies. The principal methodological conclusion of the study is that, when adapting foreign experience, it is not the mechanism itself but the economic logic underlying it that should be transferred.