EXTENSION OF THE SCOPE OF BANKING SUPERVISION

MIROSLAV NEDELCHEV

 

Abstract

The aim of the paper is to present the dynamics in banking supervision. Adapting banking supervision to the new reality is justified by protecting stakeholders and preventing future crises. To a large extent, the financial crisis is due to the limitation of banking supervision on the observance of financial ratios only.
The results of the paper present the new banking supervision functions. The scope of supervision is extended to non-financial information related to the internal governance of banks. The process of supervisory restructuring leads to a new process - the modernization of the banking system.

Key words

corporate governance, restructuring and modernization, non-financial issues

JEL Codes: G28, G34

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