Home  Journals  Finance and Credit  32(416) - 2010 August

Authorized capital of bank: aspects of formation and control

Available online: 20 August 2010

Subject Heading: BANK TECHNOLOGIES

JEL Classification: 

The formation of bank system, relevant to the needs of world economy and society in whole, is not possible without strong capital base. Issues of increasing of bank capitalization are inextricably connected with issues of the growth of authorized capital stock. In this work we investigated the structure of Russian functional credit organizations depending on an organizational legal form; we presented the evolution of regulatory and legal control of lower limit of authorized capital stock; we determined the influence of the size of capital stock on financial and law decisions made by a bank manager. The conclusion of this work is that the growth of capital stock, on other equal conditions, increases the bank capability to resist bank crises.

Keywords: authorized capital, bank capitalization, organizational legal form, lower limit of authorized capital of the bank.

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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