THEROLE OF BANKING SUPERVISION IN ENSURING FINANCIAL STABILITY

This article provides a scientific analysis of the institutional and economic mechanisms of banking supervision in ensuring financial stability. In the modern global financial system, the banking sector acts as a fundamental pillar of macroeconomic stability, and its effective functioning directly depends on the quality of supervisory and regulatory mechanisms. The study reveals the theoretical foundations of banking supervision, its prudential and macroprudential forms, and its interrelation with capital adequacy, liquidity requirements, and risk management systems. Furthermore, the role of banking supervision in preventing financial crises, reducing systemic risks, and ensuring the sustainable development of the banking sector is analyzed through a comprehensive approach.