The article deals with the causes of the negative situation in the banking sector, as the state of the bank depends on the analysis of almost all aspects of banking activity for some time. It is determined that during the banking sector audits, the state regulator uses analytical data on the banking sector's operations with its monetary obligations, compliance with maturities and maturities of assets that operate and terms and amounts of liabilities, namely, dealing with banking sector liquidity. As their financial reliability is important in the banking sector, therefore, bank clients are a socio-economic sector, needing an objective and independent assessment, as reliability directly affects the socio-economic development of the country. The banking sector was analyzed in 2016-2019 and it was found that during this period violations of laws and regulations issued by the state regulator were made in the banking sector. A number of penalties, written warnings and administrative penalties were applied by the state regulator. The method of determining the rating of banks in respect of which penalties were applied by the state regulator is proposed. The rating allows investors and potential clients to understand the situation in the banking market and helps banks identify their weaknesses and correct their work. The application of the proposed economic and mathematical model in the rating of participants in the banking sector can have a positive effect on: improving the quality of management in the banking sector and transparency in the activities of each individual bank; standardization of technologies of rating of the banking sector under the prism of the applied sanctions by the state regulator. Therefore, there is a need for an in-depth study of the techniques used by credit rating agencies in the banking sector and the identification of the main problems in establishing the rating of the banking sector. Key words: banking sector, state regulator, economic sector, efficiency, rating, rating, social sector.