Abstract . The basic principles of regulation of banking activity, worked out by the Basel committee on questions of supervision and regulation of banking activity, were investigated. The advantages and drawbacks of pro-cyclical and countercyclical models of regulation of banking activity were examined. The expediency of realization of regulation on the basis of individual estimation of particular banks and also estimations of risks that have system character was proved. It was recommended to implement the principle of countercyclical regulation in Ukraine taking into account the business cycle of economy.
Key words : principles of effective banking supervision, supervision on the basis of individual estimation of risks, supervision on the basis of estimation of system risks, countercyclical regulation, pro-cyclical regulation.