Digital transformation of the banking system in the context of sustainable development

Abstract

Purpose

The purpose of this paper is to study the current state of the Russian banking system in the context of digital economy development, to establish and identify the benchmarks and needs of legal regulation, to study the potential possibilities of digitalization of relations in the banking sector in the mechanism of implementing prudential rules.

Design/methodology/approach

Using the method of political and legal analysis used in this study, the legal guidelines for the digitalization of the banking sector and the financial services market have been determined, which in the Russian legal system are strategic planning documents.

Findings

International research in the field of banking indicates that digitalization and globalization of the economy stimulate the processes of international regulatory cooperation and harmonization of legislation, the use of new approaches in the development and adoption of regulations in the financial market. The growth of digitalization of relations in the banking sector will contribute to the effective implementation of prudential rules, including those related to the need to protect public interests.

Originality/value

The study revealed a number of issues related to the digitalization of the activities of credit institutions that are professional participants in the securities market and the central bank as a financial mega-regulator, requiring a legal solution. Measures aimed at improving the current legislation and procedures of state regulation and supervision are proposed.

Citation

Tsindeliani, I.A., Proshunin, M.M., Sadovskaya, T.D., Popkova, Z.G., Davydova, M.A. and Babayan, O.A. (2022), "Digital transformation of the banking system in the context of sustainable development", Journal of Money Laundering Control, Vol. 25 No. 1, pp. 165-180. https://doi.org/10.1108/JMLC-02-2021-0011