International experience of risk-based regulation and supervision over activity of banks of the second level

Abstract

Currently, the activity of commercial banks is the most important attribute of the normal
development of the economy of any state. The developed banking system occupies a significant place not only
for the business sector, but also in the daily life of many individual consumers. The main factor in the stable
functioning of the banking system of any state is the effectiveness of banking regulation and supervision. The
purpose of this article is to make suggestions on the maximum use of the necessary and effective experience of foreign countries in the process of regulation and supervision of the domestic banking sector based on the study
of foreign practice of risk–oriented regulation and supervision of the activities of second-tier banks.
In the article, taking into account the fact that the competence in the field of regulation and supervision of
banking activities in different countries is different,a list of States with a single body and several bodies of state
regulation and supervision of banks’ activities is provided. The article examines the risk-oriented regulation and
supervision of the European Central Bank and The activities of Swiss regulatory authorities to prevent risks, it is
revealed that the supervision of banks in Switzerland takes into account the risk profile of banks and the uneven
supervision regimes. It is also considered what indicators of the Bank’s activity in the process of supervision are
evaluated by the European Central Bank, which uses a single model of supervision.