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Journal: Economic Profile (Vol.13, No. 18)

Publication Date:

Authors : ;

Page : 18-26

Keywords : organizational structure; central bank; public entity;

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Models and organizational structure of banking regulation and supervision in each country is characterized by national characteristics, which were due to historical reasons, economic conditions and national mentality. The establishment of banking supervision provided for periodic change of its structure and organizational form. To date, the banking supervision implemented by the central banks, mega regulators, specially created public entities. But the question remains about the appropriateness of a particular model of banking regulation and supervision. This question is particularly with respect to the functions of the central bank as a banking regulator. Diversity of opinions and arguments in favor of or against such a function does not give a clear answer to the question - will decrease or increase the quality of banking regulation and control if it is implemented by the central bank or another public entity. Opponents of the banking supervision department of the central bank believe that employees of the central bank are more qualified, a powerful information base and a well-established information flow contributes not only to effective monetary policy, but also to quality banking supervision. Proponents of the separation of banking supervision from the central bank, as arguments, point to a conflict of interests between the objectives of monetary policy and banking supervision, excessive concentration of power in the central bank, its politicization and party sympathies.

Last modified: 2021-02-23 15:34:53