ORGANIZATIONAL AND LEGAL MECHANISMS FOR CONTROL OF BANKING ACTIVITIES: COMPARATIVE-LEGAL ANALYSIS

Abstract

In this article, the author analyzed the procedures, forms, and methods of control over the activities of banks by the central bank. The purpose of this study is to develop proposals and conclusions aimed at improving the banking control system as a result of the study. The main task of the Central Bank is to ensure the stability of the financial market, prices, and settlements. Based on this goal, the central bank will have the necessary legal instruments and financial leverage to ensure the stability of the financial system in accordance with the law. In the financial system, banks, their liquidity, protection from risks, and guaranteeing the rights and interests of depositors are first-level issues, and measures are applied to banks that do not comply with these rules in the prescribed manner. The Central Bank controls banks in two ways. The first method is the regulatory method, in which it determines the procedure for carrying out actions related to its activities and individual regulations and rules. The second method is prudential control, in which the central bank sets rules for regulating the economic activities of banks. However, these processes must be fairly enshrined in legislation in the prescribed manner. By studying these issues through a comparative analysis of domestic and foreign legislation using historical, legal, systemic, logical, statistical, and other methods, proposals have been developed to systematize the requirements for control over banks in national legislation and the measures applied. These proposals are used in scientific activities, lawmaking, law enforcement, the interpretation of banking legislation, and the improvement of national legislation.