A Theoretical and Methodological Framework for Macroeconomic Shock Absorption in the Banking Sector

Abstract

In the modern era, the rise of global economic uncertainty and the intensification of macroeconomic shocks have highlighted the resilience of the banking sector and the need to re-evaluate existing theoretical approaches. The main purpose of the study is to systematically examine and classify the existing theoretical, methodological, and conceptual foundations of macroeconomic shocks and their absorption mechanisms in the banking sector. The article reviews the existing literature on scientific approaches to the endogenous and exogenous nature of macro-factorial risks, banks' risk-taking behaviors within the context of the "volatility paradox," and the effectiveness of macroprudential policy tools of regulatory authorities. The object of the study is the processes of ensuring the financial stability of the banking sector in a macroeconomic environment, while the subject is the conceptual principles of absorption mechanisms formed to cushion shocks. As a methodology, the systematization of existing scientific literature, comparative analysis of theoretical concepts, induction, and deduction methods were utilized. The paper generalizes scientific perspectives on the transmission channels of macroeconomic shocks to bank capital and liquidity and establishes a conceptual framework explaining under which theoretical conditions these shocks can be mitigated. The theoretical generalizations provided serve as a fundamental scientific framework for modernizing risk management systems in banks and conducting future empirical research.