Financial Insolvency of a Bank - the Nature and Methods of Prevention

The article explores the definition of financial insolvency of the bank and ways to avoid such a situation. Experts and academics highlight many problems in the existing banking system, but it is unknown how the policy pursued by the Central Bank will affect it and how soon all issues will be resolved. Since 2013, the Bank of Russia, as part of the policy of improving and strengthening the banking sector, has begun to implement measures to intensify banking supervision, including through increasing the level of compliance by banks with legislation. Banking activity is a special form of entrepreneurship, involving the attraction of money resources and the distribution of these funds on its own behalf and at its own expense, it is also related to the movement of money and capital, the provision of credit. That is why a special system for supervising the activities of credit institutions has been created, their functioning is subject to rules more stringent than those on which the activities of other commercial organizations are based.