THE ESSENCE OF STATE REGULATION OF BANKING RELATIONS AND ITS LEGAL BASIS

Abstract

The article is devoted to the study of the essence of state regulation of banking relations and its legal nature. State regulation of banking activity is a set of regulatory and individually authoritative actions on the part of regulatory authorities aimed at creating, functioning and stability of the banking system, protecting the rights of its participants and ensuring legality in the banking sector. The paper analyzes the dual legal nature of state regulation of banking activities. On the one hand, it is expressed in the adoption of regulations that establish the foundations of the organization of the banking system, the status of subjects and legal regimes of banking activities. On the other hand, the Central Bank, acting as an element of the banking system, regulates by issuing legal acts affecting specific credit institutions, as well as through banking supervision mechanisms. It also examines key aspects of government impact on the banking sector, including external (regulatory) regulation and intra-system regulation carried out by the Central Bank. Regulatory objectives are highlighted, such as ensuring the stability of the banking system, protecting the interests of depositors, and countering monopolization and unfair competition. In addition, the article makes a distinction between public administration and banking regulation, emphasizing the need for a clear distinction between these concepts. The role of self regulatory organizations in the banking sector and their interaction with government agencies is discussed. Thus, the authors conclude that state regulation of banking activities is a complex system of legal mechanisms aimed at maintaining the stability and efficiency of the banking sector, as well as 
protecting public and private interests.