THE ROLE OF ADMINISTRATIVE LAW AND AUTHORITIES IN PRESERVING FINANCIAL STABILITY

Financial stability represents a key element of economic security and sustainable development of every state. Its role is reflected in maintaining the confidence of participants in the financial market, ensuring the liquidity and solvency of financial institutions, and preventing systemic crises that may have broad social and economic consequences. Administrative authorities, including central banks, ministries of finance, and specialized regulatory agencies, play a crucial role in achieving this stability through the legal and institutional framework that governs their activities. This paper examines the role of administrative law and competent authorities in preserving financial stability, focusing on regulatory functions, supervisory activities, preventive measures, and the sanctioning of irresponsible financial actors. The analysis is based on a comparative approach, including a review of domestic legislation, international standards (such as Basel III regulations and EU directives), as well as case studies of interventions by the National Bank of Serbia in periods of financial turbulence. The paper demonstrates that the effective implementation of administrative law contributes to the reduction of systemic risks, the enhancement of transparency and accountability of financial institutions, and the preservation of trust in the financial system. It also highlights the challenges brought by new technologies, global financial flows, and the need for constant improvement of the regulatory framework. It is concluded that the coordinated application of administrative law and strong supervision represent a key strategy for maintaining financial stability and achieving long-term sustainable economic development.