Are the Sanctions envisioned by Law enough to Deter the Bank's improper Behaviour?:
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Bibliographische Detailangaben
1. Verfasser: Pintea, Dumitru (VerfasserIn)
Format: Elektronisch E-Book
Sprache:English
Veröffentlicht: Chişinău [Moldova, Republic of] EXPERT-GRUP Centrul Analitic Independent 2017
Schlagworte:
Online-Zugang:BSB01
Beschreibung:To protect the interests of depositors and to maintain the stability of financial system, the central banks or other assigned institutions have the duty to ensure the regulation and prudential supervision of commercial banks. These objectives can't be achieved unless prudential norms and indicators are established, their compliance is monitored, and if appropriate, sanctions are imposed to prevent and limit the risks. In addition, taking into account the possibility to calibrate risks, the sanctions aim to correct the modus operandi of the bank as a whole, and individually, of key persons, who ultimately decide on the level of assumed risks. The international financial leaders have reached a consensus on the need to strengthen supervision and prudential regulation framework because of pressing negative effects and frequency of banking crises. The new Basel III Agreement is the outcome of many debates and covers a number of reference norms designed to reform and strengthen the worldwide financial industry. As regards the relevant intervention measures and sanctions, the new provisions aim to standardize both their level and implementation mode or triggering conditions. Though the new provisions fundamentally affect the bank's profitability, a number of countries started to implement them in 2011, being aware of the need to maintain the macro-prudential balance
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