Regional Formation and Development Studies

The aim of the paper is to study the influencing factors and to identify the ways of improving the effectiveness of regulation in theLatvian Bank system (LBS). Basing on the systemic comparative and logical analysis data of the efficiency of regulation in differentstages of LBS development article demonstrates that its key factor is the level of business ethics and professionalism of majorshareholders and top management of the banks, but the main directions of improving its efficiency is an increase of the role of contentapproach to control in comparison with the formal approach.