Supervision of banks and the stability of the banking system

Banking is an activity that influences, both directly and indirectly, all the other activities and the economy as a whole. What is more, banking is the activity that takes over the risks immanent in the nature if financial institutions. Nowadays banking is going through significant changes of functions and forms. The creation of gigantic banks through consolidations and acquisitions, a growing competition of non banking financial and service firms, the internationalization of financial markets, the multiplications of services, changes in rules and deregulations, continuous innovations in the information technology and automatization are changes caused by the growing trend of globalization. Banking requires human and technical skills for the understanding of risk features in the batik's environment, the identification and classification of risks, their measurement, the control and setting up of procedures and instruments needed to minimize the exposure to risks in order to minimize the losses. In order to have a continuous realization of that goal a growing international cooperation is inevitable in banking, in both the regulation and the supervision of banks, starting from the conditions needed to found and operate banks to the moment the bank ceases to operate.