The Sense of Central Bank Control and Ways of its Improvement

Abstract

The control is the important function of any system of administration. The constitution and the laws of the RA provide Central bank an exclusive right to control the bank and credit system of the RA. The Central bank is monitoring banks and credit organizations in fixed way, in order they realize there main and special economic norms on sufficient level and act in accordance and in time.

The particular functions of Central bank legal status is conditioning on its control function. This control is realized by checking on place and via every day correspondence control. It is public control. The functions of control for bank and credit system suppose getting definite information and analyze it for taking proportional measures on its basis.

During its control activities the Central bank is using international experience and especially the recommendations of Basel Committee. The international cooperation of banking control provides presence of two mechanisms of its realization: institutional and legal. Institutional mechanism supposes making structural formation (organ) in the frame of which approaches connected to each other, as well as legal are set, which include the complex of normative means (acts, documents and other).

The decisions of Basel Committee do not have legal power, but they have juridical sense, because they are the acts of international nongovernmental organization. They can be used as a basis for setting juridical norms by competent organs.