Role of the central banks in prevention and management of bank frauds

Abstract

The present paper has a significant contribution to the expansion of researches related to the prevention and anticipation of bank failures. The actuality of the investigated subject results primarily from the necessity and importance of maintaining a stable banking system able to withstand strong internal and external shocks, and also from the necessity of permanently completing the regulatory framework in order to prevent some probable crises and bankruptcies in the future, taking into account the continuous development and the emergence of new risks in the banking activity. The scope of the present paper is based on identification of the ways of anticipating bank failures in the domestic banking system as a result of theoretical researches and studies of international practice facilitate the elaboration of concrete proposals with applicability in the process of streamlining the banking supervision in order to ensure the financial stability of the banking system and the prevention of bank failures.

Keywords

• anti-fraud policy
• banking system
• banking activity
• bank risks
• code of ethics
• financial services