Gennadiy Y. Financial and Legal Aspects of Banking Crediting Regulation

The present research is devoted to development on comprehensive basis of theoretical and practical aspects of financial and legal regulation of banking crediting. The research is intended to discover core essences of basic notions used in the lending area; to study legal status of a bank institution as of a special type of financial intermediation; to identify forms and particularities of a bank involvement into crediting relations; to define the notion of a banking loan. Special tribute is paid to legal analysis of relations and obligations arising of banking crediting as well as to formulation of special principles laid dawn in the basis of legal regulation of banking crediting. In particular the following principles have been identified and developed: protection of creditor’s legitimate rights and interests; borrower’s creditworthiness; security against a credit; minimization of credit risks; purposeful utilization of credit resources by the borrower according to its designation; profitability of bank’s credit transactions; borrower’s liability for reimbursement of bank loans. Key components of banking crediting regulation that shall secure its effective mode of operation were identified. In particular the following vehicles were defined: financial security in banking system; pre-contractual relations referred to granting a loan; securing performance of credit obligations; enforcement of debts under bank loans. Mortgage lending is treated as significant segment of banking business, which requires introduction of special regulatory and organizational background