Do not mention Russia: A theoretical framework for bank penalties due to economic sanction violations and policy implications

In this paper, penalties to banks violating economic sanctions have been investigated and discussed. This topic has sparked renewed interest attention following the beginning of conflict in Ukraine due Russian aggression February 2022 ongoing general deterioration global climate. Thus, based on experience with for violations from 2007, a theoretical model proposed. It is proposed that may be informative devising optimal level behavioral characteristics regulators. The examination motives incentives bank misconduct, by drawing Shapiro-Stiglitz addressing typical consequences asymmetric information principal-agent models. From policy perspective, also potential provide opportunities standardization restrictions posed as result misconduct. Relevant implications concerning are put forward implemented future considerations, particularly cases related sanctions.