Prudential Supervision of Banking: Interrelation between Institutional Architecture and Financial Stability

Abstract

The article is dedicated to the research of prudential supervision of banking, as one of the key factors of ensuring financial stability.The basics of organization of prudential supervision of banking in current economic circumstances are defined. The practiceof foreign counties in organization of prudential supervision of banking is considered. Particular attention in the article is paid tothe question of optimal institutional organization of prudential supervision of banking with an aim to ensure financial stability in thecountry. This paper presents efforts of the author to find out interrelations between institutional architecture of banking supervisionand financial stability in the country.