Legal Regulation of The Oversight Functions of The Central Bank of The Russian Federation

The reform of the banking supervision, which is currently conducted in the Russian Federation, deals with the consequences of the global financial crisis and development of banking relationships. Improvement of banking system prevents active intervention of the government. In order to solve the dilemma between these parties, a thorough investigation should be done. The aim of this research is to address the most important theoretical and practical issues related to the legal status of the Central Bank of the Russian Federation and its oversight function, research of modern banking legislation, formulation of legal structures and definitions that could be included in the actual banking practice. The main method of this work is a comprehensive study, which presupposes detailed analysis of normative and theoretical component of banking supervision regulation. Firstly, the term ‘banking oversight’ is defined and the peculiarities of the supervision of credit Institutions are explained, its main objectives and features are outlined, the existing gaps in legislature of the sphere are revealed. Secondly, the research raises the issue of reduction the influence of the Central bank on banking sector. The modification its powers and the lifting of mandatory financial standards would provide freedom of competition between banks and would stimulate the emergence of new credit institutions.