compliance, compliance risk, banks, international standards, reputation, image, function, National Bank of Ukraine, ethics, corporate conflicts, monitoring.


The issues of importance in the activity of domestic banks of the implementation of the compliance system are investigated. The thesis about the relevance of compliance in banking, its influence on the level of trust in the bank on the part of customers and partners, is substantiated.

The aim of the work is to study the features of the implementation of compliance control by domestic institutions of the banking sector.

Author’s definition: compliance is a set of measures for the formation of a bank’s activities with the norms of current legislation, rules and standards, which is implemented using internal control tools and ensures that the bank meets the requirements of regulatory documents, ethical principles and maintaining business reputation, and also protects financial security .

In the modern business world, compliance in the practice of Western financial and credit institutions is an expression of their law-abidingness, transparency of their financial statements, proof and guarantee of a high level of corporate culture and professionalism. That is, the introduction of compliance is the key to improving the reputation and image of a banking institution, increases its value among partners, and also increases the trust of employees and customers.

In practice, the activities of global financial institutions have long defined procedures and regulations for the implementation of compliance control. The main regulatory document that establishes the basics of compliance control in banks is the Basel Committee on Banking Supervision “Compliance and the compliance function in banks”. This regulatory document provides clarifications on the responsibility of the board of directors and executive bodies for overall control in the effective management of compliance risks; independence of the compliance function, which means that there is an official status of the compliance service in the organization.

The article emphasizes that the need to develop a solid and effective compliance system in banking sector institutions has long been ripe, especially in an unstable economic environment and unpredictable dynamic financial and economic processes. Particularly important in this case is that the organizational foundations of building a compliance system and managing compliance risks in banking institutions should be regulated by regulatory legal acts of the National Bank of Ukraine and, therefore, become binding on all market participants.

The main manifestations of compliance risks in the activities of a banking institution are analyzed:

1) reputational risk;

2) operational risk;

3) legal risk.

The authors emphasize that it is impossible to completely avoid compliance risks. But it is important for the bank to conduct a qualified analysis of them, develop fundamental recommendations to reduce and manage such risks, as well as put these measures into practice. Underestimation of the role of compliance risks in the activities of a banking institution can cause increased compliance risks, even threatening the liquidation of such a bank.

The article substantiates that thanks to the implementation of the compliance system, each bank is able to build a reputation as a reliable and transparent financial institution that works in accordance with international standards and is based on compliance with the principles of professional ethics, corporate culture and intolerance to corruption. This, in turn, will provide the bank with the trust of its customers, investors, employees, partners, the state and provide it with the image of an institution that meets all the highest quality standards.

Author Biography

V. Svitlychna, O.M. Beketov National University of Urban Economy in Kharkiv

Ph.D., Associate Professor department


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How to Cite

Svitlychna, V., & Ovchelupova, O. (2019). CURRENT SITUATION AND PROSPECTS OF IMPLEMENTING COMPLAINTS-CONTROL IN THE ACTIVITIES OF BANKING INSTITUTIONS: Array. Municipal Economy of Cities, 7(153), 24–30. Retrieved from