CORRUPTION IN BANKS AND MECHANISMS FOR ITS PREVENTION
Keywords:
Corruption, banking system, lending, tender procedures, economic growth, institutional development, conflict of interest, digitalization, transparency, internal control, audit, public governance.Abstract
This research paper provides an in-depth analysis of corruption in the banking sector, the causes of its emergence, its negative impact on the economy, and the mechanisms for its prevention. Since banks are one of the most important components of a national economy, corrupt practices in this sector adversely affect financial stability, the investment climate, and public trust.
The results of the study reveal that major corruption risks in the banking system are linked to lending operations, procurement and tender processes, currency transactions, and abuses in internal auditing. The findings also evaluate digitalization, improved transparency, strengthening internal controls, staff rotation, regulation of conflict of interest, and enhancement of sanction mechanisms as effective tools in combating corruption.
The study concludes that minimizing corruption risks in the banking sector is an essential factor for ensuring economic stability and social welfare.
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