Klimova Anna, 4th year student of Law Faculty of the SU-HSE Head of research: Fogelson U.B. Thesises of the essay: “The Principles of regulation of the Russian banking sector in comparison with international standards” The broadening of the commodity and services markets’ borders led to the necessity of the execution of the international settlement between the contractors all over the world. This tendency reflected on the rash integration of the states banking sectors to the international financial market of the bank services rendering. Because of such integration the execution of the banking supervision in every state needs clear and effective regulation that is determined in normative and recommendatory acts of the special international organizations. Such organization in the banking sector - the Basel Committee on Banking Supervision (hereinafter – “the Basel Committee”) – has enacted the act named “Core principles for effective banking supervision“. In this part of the essay will be carry out the brief research on the subject of correlation between the above-said international principles and the Russian regulation of the banking sector. The Central Bank (the Bank of Russia) (hereinafter – “the CB”) is a banking supervisory authority in Russia. However, except of authorities of supervision in banking sector the CB regulates the monetary policy of Russia. Such combination of such different functions in one state body generate the idea of separation of the banking supervision authorities from the powers of the CB1. But now these reforms are far from reality. According to the articles 3 and 56 of the Federal Law “On the Central Bank of Russian Federation” the main goals of regulation and supervision executing in the banking sphere are the next: Evolution, consolidation and maintaining of the banking system stability; Defense of the depositors and creditors’ interests. Let us analyze the observance in Russia of the “Core principles for effective banking supervision” of the Basel Committee. For that we’ll choose 3 main principles: transparency, 1 Proposals to separate banking sector supervision from the authorities of the CB and to pass it to the special purpose federal body emerged some years ago and were confirmed in the Decision of Russian Government in 2006. Nowadays in the State Duma of Russian Federation is discussed the legislation of creation a special regulation body – self-regulating organization (with participation of the state and business entities that operates on the financial markets) that will have an supervision authority on all financial markets. But not everybody supports this idea because of the lack of evidentiary support of the efficiency of such organization. 1 financial stability and liability of the supervisory authority. Firstly let’s disclose the principle of transparency. It established as one of the first standards in the “Core principles” and consisted in requirement of the transparent processes of the banking supervision (i.e., of decisions making). Also the idea of the transparency is disclosed in the Principles 19 and 21: an effective banking supervisory system requires that supervisors develop and maintain a thorough understanding of the operations of individual banks and banking groups. The supervisory authority has to inform the community about its day-to-day work. The requirement to inform a number of unspecified persons means for the supervisory authority not only to present the information, but also to clarify, to ground its actions (decisions). The similar principle of “reasoned arguments” results from the standard of transparency of the banking supervision authority and will be fundamentally disclosed in the main essay. Let us answer to the question whether the principles of transparency and of reasoned arguments observe in the supervision of banking activity? Despite of the absence of these principles in the Russian legislation they take action in Russia because of special norms and practice of application. Reporting of the CB is represented as information with public access and presents annually to the State Duma of RF (including the official publication on the CB e-page) ( chapter 5 of the Federal Law “On the CB of RF”). Also in the article 77 of above-said Federal Law is established a duty of the CB to give the answers on the requests of credit institutions in the limited term – during a months – and to hold consultations with business entities on the most important subjects. But the situation with the observance of the principle of reasoned arguments is more difficult – in many norms of the Federal Law “On banks and banking activity” is established that in the case of adoption of negative for the credit organization decision supervision authority has to motivate it (i.e. under the article 16 the CB has to motivate the refusal in registration of credit organization or refusal in the grant of license). But the past practice of the CB it just shortly pointed the cause of the refusal, didn't ground the motives of the refusal, didn’t disclose the circumstances that had influence on the refusal. Now the CB slowly begins to apply in practice the Basel principle of reasoned decision, but insufficiently. The real application of the principle will allow avoiding in many cases of bringing suits by means of which credit organizations are trying to protest unmotivated decisions of the CB. The principle of financial stability of the supervision authority is the next of the core Basel principles. It is firmly connected to the principle of independence of the banking supervision body with no financial resources there will be no opportunity to perform the supervisionОн крепко связан с принципом независимости органа банковского надзора, ведь без наличия средст не будет возможности осуществлять деятельность по надзору в банковской сфере (принцип 1 Основных принципов). In compliance with the Federal Law 2 “On the CB” the CB has registered capital in amount of 3 billion rubles (article 10) and also it has a right to make profit from the banking operations and bargains connected with the performance of the CB functions (article 11). The article 2 of the law also declared the next norm: “The Bank of Russia undertakes the expenses for account of its own income”. In the conclusion of analysis of these legal norms can be said about observance of the financial stability principle in regards of the CB. But there must be mentioned that such observance is possible only because the CB has other than banking supervision authorities which at large provide its income. The last of discussed Basel principles is the principle of supervision authority liability (core principle 1). It consists in the fact that the efficiency of the banking supervision directly depends on the reality of the liability of the authority. At that the banking supervisory body has to bear material responsibility for its violations of the norms. In spite of the declared in the Russian legislation norms that allow not only to challenge actions (inaction) of the CB, but also to apply sanctions to the officials that are liable for the violations. In many cases the principle of the liability is observed by the stated procedures of the decision-making, determined foundations for every kind of decision and right to challenge illegal in business entity’s opinion decision (by administrate procedure or by the court proceeding). But also some decisions of the CB give rise to its criticism from business entities because of the absence of motivation in the decisions. The situation can be changed by the more effective application of the reasoned arguments principle by the CB. International core principles of the Basel committee already are reflected in the Russian legal system, although they are stated not directly but impliedly in the norms. But in practice these principles often are not applied. That’s why the correctives in the system of banking supervision are necessary for the purpose of real observance in Russia of the Basel requirements. Proposals on such amendments will be examined in the resulting essay. 3