Regulation and supervision of the central bank over the financial institutions

Resumé/Summary The goal of my thesis was to clearly map the system of central bank's regulation and supervision of financial institutions through defining different entities that operate in the market and risks they take. I tried not to limit my thesis to the Czech banking market but to assess impacts of significant EC directives regarding regulation and supervision on our legal order. The reason for my research was to solve a disputable issue concerning the suitability or even necessity of the financial sector regulation, compared to the claim of some economists who incline to the concept of avoiding the financial market regulation. In my opinion, banking regulation seems to be a completely natural phenomenon with positive impact on the entire economy, which mostly arises from the bank position that has to be different from other industrial or trade companies. The thesis consists of four chapters with each chapter focusing on specific aspects of banking regulation and supervision. Chapter one defines key institutions of the financial market, which are commercial banks, other financial institutions and regulated entities in the position of regulated and supervised persons on one hand, and the regulating and supervising authority on the other hand, which is the Czech National Bank in the Czech Republic. In..