Summary

From the perspective of the state, it is important to create a legal framework to enhance the reliability of financial markets, to prevent market manipulation and financial offences, to ensure consumer protection and thereby to support the effective distribution of resources. For this purpose, the law establishes requirements for credit institutions. Banking supervision is not only characteristic of countries in transition to a market economy but also of advanced countries with a strong market economy. State involvement and supervision are aimed at reducing the risk of losses suffered by depositors and other creditors and at assuring trust in the financial system without direct interference in banking transactions.
The normal operation of credit institutions is ensured through the risk management system which applies preventive and repressive measures. Although such measures are applied under different circumstances, they both involve taking discretionary decisions. Since banking supervision is largely based on prognoses and risk decisions, it is not possible to apply principles common in the general administrative law theory such as the requirements to define previously undefined legal concepts and to minimise discretion upon administrative enforcement.