Contents and principles of stability of the banking system

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Abstract

The main approaches to understanding the essence of “stability of banking system” are conducted in the article. The basic principles are also given, inherent in a stable banking system. Further, the main factors affecting the stability of the banking system are considered. The article determined the components of ensuring the assessment of the bank’s financial stability. The basic principles of effective banking supervision are the actual minimum standard for prudent regulation and supervision of banks and banking systems. Initially issued by the Basel Committee on Banking Supervision in 1997, they are used by countries as a guide to assess the quality of their surveillance systems and to determine future work towards achieving a basic level of rational oversight practices. The core principles are also used by the International Monetary Fund (IMF) and the World Bank in the context of the Financial Sector Assessment Program (FSAP) to assess the effectiveness of banking supervisory systems and country practices.

About the authors

Hadir H. Shubbar

Peoples’ Friendship University of Russia (RUDN University)

Author for correspondence.
Email: sed.hhhshb@gmail.com

postgraduate student

6 Miklukho-Maklaya St., Moscow, 117198, Russian Federation

Andrey V. Guirinsky

Peoples’ Friendship University of Russia (RUDN University)

Email: gggwork@mail.ru

Cand. Sci. (Econ.), Associate Professor, the Department of Finance and Credit

6 Miklukho-Maklaya St., Moscow, 117198, Russian Federation

References

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