Contemporary Legal Mechanisms of Сontrol in Banking

The article focuses on structure and contents of contemporary legal mechanisms of control in the field of banking. The author differentiates between the legal mechanisms of external control (applied by competent banking supervision authorities to banks) and the legal mechanisms of internal control (applied by banks to their internal processes within the internal control system). The main legal mechanisms of external control in banking include setting mandatory economic standards and ratios, special procedure for approval of acquisition or increase of qualifying holding in banks, special procedure for approval of top managers of banks, control over transactions between banks and their related parties, appointment of a bank’s curator and application of sanctions. The main legal mechanisms of internal control in banking include risk-management, compliance control and internal audit in bank. The author pays special attention to comparative analysis of the requirements of the Ukrainian law, the laws of other jurisdictions and international law standards of banking activity setting normative contents of legal mechanisms of control in banking.