BANK REGULATIONS IN MODERN FINANCIAL ENVIRONMENT

The paper analyzes the role and importance of bank regulations in ensuring safe and stable banking operations. Modern business environment in which banks operate is unstable, turbulent, and quite unpredictable. Unlike traditional business conditions, banks are now exposed to growing and diverse risks, as well as frequent crisis situations. Accordingly, control over banking operations is becoming a necessity. The need for regulation can be justified by the fact that the market, left to itself, cannot remain competitive in the long term. To fulfill their goals, regulations must constantly adapt to changes in the environment. The aim of the paper is to point to the necessity of regulatory changes in the banking sector. By critical review of certain regulatory changes, the authors conclude that they significantly contribute to safer banking operations and system stability