PRUDENTIAL REGULATION OF THE BANKING SECTOR IN THE CONTEXT OF ENSURING ECONOMIC SUSTAINABILITY

Regulating banking activity is an integral part of the regulation of financial sector and the economy in general. The banking sector's prudential regulation main objective is to ensure the stability of the banking sector under the circumstances of fulfillment bank's functions and their contribution to the economic growth. The purpose of this article is research and evaluation of current prudential regulation of the banking sector in order to ensure a sustainable economic growth. In this context were analyzed prudential regulation elements and their approach to economic literature. To evaluate the effectiveness of prudential regulation are recommended quantitative and qualitative indicator, which are calculated on the basis of financial stability indicators.