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Univerzitet za poslovni inženjering i menadžment Banja Luka , Banja Luka , Bosnia and Herzegovina
Increased activity in the field of banking regulation, as compared to other types of companies are justified by the fact that the bank's balance sheet differs greatly from ordinary non-financial companies’ balance sheet. That is one of reasons why banks are more vulnerable than non-financial companies, which leads us to thinking that an unexpected loss on account of non-fulfillment of the other side (the loss of part of the assets of the bank) may not be enough to cover the sources resources, specifically in the capital. It's one of the reasons why the regulators of the financial system pressure banks to increase their share capital to a level that is defined as the minimum required to cover potential losses and to minimize the risk that the default does not transmit a domino effect on the Bank's clients. In addition, banks play an important role in the economy of each country, but mostly in transition countries where they are a pillar of the financial system and the dominant financial intermediaries in it. It is therefore natural that the area of banking business is strictly regulated, as a bank’s failure could affect the economy of the entire country. One of the goals of banking regulation is to avoid cases of bank failures and the protection of clients, to ensure a stable and sound banking system and, in addition, protectes and ensures stable national currency.
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