Actual trends of financial system regulation changes

Journal Title: Acta Economica - Year 2012, Vol 10, Issue 16

Abstract

Every financial system due to risks of its complexity, dynamism and openness, is inevitably controlled and regulated by local and international regulations. Advantages of regulation for the health of the financial system are multiple, but the question is where are the boundaries of control and regulation, when it outgrows its effects and becomes the source of opportunity losses. This paper explores the genesis of control and regulation development in economy and financial system of a country, defines its domain and measures of effects, and highlights the positive effects and limitations of state intervention, i.e. regulation and supervision from the aspect of variations in conditions of their application. The process of harmonization of banking regulation and supervision at the international level is very important and happens analogous to implementation of the Basel agreements. The introduction and implementation of Basel agreements standards and recommendations of the Basel Committee has certainly contributed to financial stabilization of the banking system, and harmonization of international financial standardized reports necessary for rational decision-making during investment. Like any process, these processes will inevitably require some analysis of the benefits and costs of their implementation, and analysis of their cost-effectiveness.

Authors and Affiliations

Драгана Башић

Keywords

Related Articles

Interdependence between tax policy and development of the SME sector: An empirical study in the Republic of Srpska

Small and medium sized enterprises (SMEs) are increasingly the subject of interest and support of the governments of developed countries in which these businesses are one of the factors that influence the economical devel...

Conditions and limitations on investments of small and medium enterprises in intangible assets as a response to the crises of the real sector

Business environment for small and medium size enterprises in Republika Srpska is extremely unfavorable. Lack of entrepreneurial infrastructure as well as legal framework, alongside global financial crisis and crisis of...

PRIVATIZATION IN TRANSITION ECONOMIES

I examine the motives for and goals of privatization pursued in transition economies. Following this, I sketch the various techniques of divestment in some sense used up to now. Privatization has been used in a broad sen...

Leaden legs of recovery of Republic of Srpska economy

This paper , on the base of historical facts, tries to warn the business decision makers on the need to examine the global limiting factors that significantly affect the recovery and development of the economy of any coun...

The process and problems in creation of a marketing plan

Creation of usable marketing plan is always an actual problem. Having in mind that marketing planning is a foundation for future directing of marketing activities of organization, primarily the process of marketing manag...

Download PDF file
  • EP ID EP43739
  • DOI -
  • Views 308
  • Downloads 0

How To Cite

Драгана Башић (2012). Actual trends of financial system regulation changes. Acta Economica, 10(16), -. https://europub.co.uk/articles/-A-43739