Duties and political tools of the central bank in supervising banks through legal entities

One of the main issues that led to the formation of central banks in different countries was the need to monitor financial institutions to maintain the stability of the system. Various laws and indicators were developed to prevent the instability of this system by organizing the behavior of financial institutions. According to Principle Twenty-two of the Central Principles of Wing Committee Supervision, bank supervisors should have appropriate oversight tools to ensure that depositors are exposed to risk if they do not meet their precautionary requirements or violate regulations or otherwise. Take corrective action in a timely manner. The tools that can be used by the central bank to monitor and deal with violators. This research has been collected through field studies. The findings of the researcher indicate that one of the tools of the central bank to deal with violators is to deprive them. It is one of the services provided by the Central Bank, so this can be a solution to prevent violations by other banks and financial institutions.