Some issues of legal regulation of the banking system at the present stage: on the example of the Azerbaijan Republic and the Republic of Kazakhstan

Abstract

This article examines the issues of legal regulation of the banking system of the Republic of Azerbaijan and the Republic of Kazakhstan, conducts a comparative legal analysis of banking systems, characterizes common and distinctive features. It is noted that since January 2020, the Republic of Kazakhstan has again introduced a supervisory body — the Agency of the Republic of Kazakhstan for the Regulation and Development of the Financial Market. In the Republic of Azerbaijan, from March 16 to November 28, 2019, the banking system of the Republic of Azerbaijan was three-tier, and included the Chamber for Control over Financial Markets of the Republic of Azerbaijan. The article also outlines the ongoing measures to ensure the stability of the banking system of Kazakhstan and Azerbaijan. To meet the needs and scale of activities, it must be adequately positioned at the international level, therefore, the country needs developed financial institutions. A general description of the Central Bank as a supervisory body in the financial and banking sector is given. Based on statistical data on the shares of foreign capital in the banking systems of the Republic of Azerbaijan and the Republic of Kazakhstan, the authors conclude that in both republics, banks with foreign capital do not occupy a dominant position in the implementation of banking activities, which allows domestic entrepreneursto freely carry out this activity.