THE SYSTEM OF BANKING SUPERVISORY AUTHORITIES: FUNCTIONS AND POWERS

Abstract

Banking supervision is one of the key elements of ensuring the stability and reliability of the banking system. The effectiveness of supervisory mechanisms directly affects the ability of banks to maintain adequate capital and liquidity, manage risks, protect the interests of depositors and creditors, and respond promptly to emerging financial risks. in modern conditions, banking supervision is increasingly based on a risk-oriented approach, which requires supervisory authorities to assess not only compliance with established prudential requirements, but also the nature and scale of risks assumed by individual banks.
In the Republic of Uzbekistan, the Central Bank plays a central role in the regulation and supervision of banking activities. In accordance with the Law of the Republic of Uzbekistan “On Banks and Banking Activities”, the Central Bank is the state body responsible for regulating the banking sector and exercising powers related to licensing, regulation and prudential supervision. The activities of the Central Bank are aimed, among other things, at maintaining the stability of the banking system and ensuring the effective functioning of payment systems.