Banking control in Ukraine: problems of implementation and adaptation to international standards

Abstract

The article revealed that the current national legislation of Ukraine, unfortunately, does not have a legally regulated concept of "banking control". Scientific doctrine is multifaceted and contains diametrically different interpretations. Without pretending to the completeness and redundancy of the analysis of existing views on the nature of bank control, we will formulate the author's definition of "bank control". It is established that the domestic banking legislation is based on "Basel I" with the exception of the amendment regarding the inclusion of market risks from 1996. It was noted that the experience of foreign countries indicates a change in approaches to bank control. It is no longer just a control over compliance by banks with formal indicators, it is a transition to the principles of banking control defined in the international agreements "Basel II" and "Basel III", the introduction of a risk-oriented approach, quality control at the level of the banks themselves. It was concluded that the implementation of a number of Basel II and Basel III principles in Ukraine will only strengthen the Ukrainian banking sector as a whole due to a better understanding and quantitative assessment of risks, improving the quality of corporate governance and increasing business transparency.