STATE REGULATION OF BANKING ACTIVITY IN UKRAINE

The article is devoted to the analysis of scientific approaches to the interpretation of the concepts of «state regulation», «state regulation of banking», «banking regulation» and the measures on which the state regulation of banking is based. An analysis of the scientific literature in various fields allows us to conclude that scholars ambiguously interpret the term «state regulation of banking.» Most often, state regulation of banking is seen as a system of measures by which the state through authorized bodies regulates the activities of banks. The domestic legislator considers the concept of «banking regulation» as one of the functions of the National Bank of Ukraine, which is to create a system of norms governing the activities of banks, determine the general principles of banking, banking supervision, liability for violations of banking legislation. The main purpose of banking regulation is security and financial stability of the banking system, protection of the interests of depositors and creditors. The importance of state regulation of banking as an integral part of public policy is emphasized. Effective state regulation of banking activities should ensure stable and uninterrupted operation of the banking system, guarantee the provision of quality services by banks to depositors and borrowers and protect their interests. Preventive and protective measures on which the state regulation of banking activity in Ukraine is based are considered. Preventive measures should be implemented through the approval of mandatory regulations. The application of protective measures should provide protection against the already threatening situation for the bank. Attention is also paid to the forms in which state regulation of banks by the National Bank is carried out. Such forms are administrative regulation and indicative regulation.