Economic imbalance and regulatory traps in banking sector

Abstract

Banking system is influenced by many economic and un-economic factors, resulting in economic imbalance of such system. Banking crisis are part of global economy despite banking being a regulated sector and its priority is to prevent systems risks. System regulation known under the name BASEL II was marked as not satisfactory, it is not complex, directed into a wrong way, pro-cyclical and containing many conflicting factors. Actual now a new option, BASEL III. In this article selected aspects of economic imbalance are presented and contemporary banking regulatory systems well, regulatory trap is defined and partial references submitted improving quality of banking regulatory sector.