Financial stability — the main factor in the relationship between the state and the banking sector

Abstract

The article concerns financial stability as the main aim undertaken by the state for the banking sector. Among other issues, the purpose of prioritizing financial stability in the new architecture of macro and micro-prudential supervision of the banking sector has been clarified. Furthermore, comments regarding current terminological ambiguities arising in the doctrine due to the concept of financial stability have been included. The article not only characterizes the challenges that both the state and the supervisory authorities — as part of constructing an effective strategy aimed at maintaining financial stability face, but also presents difficulties related to achieving this aim while maintaining the efficiency and competitiveness of the banking sector.