Облік і фінанси (Dec 2019)
Features of Regulation and Supervision of Financial Institutions in the EU
Abstract
The objective need to find an effective form of institutional support in the context of introducing innovations in the activities of financial institutions, and the instability of the sectoral model of regulation and supervision of the financial institutions activities have led to integration and consolidation processes in the regulatory and supervisory systems of most EU countries. The purpose of the article is to disclose the structure of the system of regulation and supervision of the financial institutions activities in the EU at the international and national levels and to determine the features of the implementation of the state subsystem at the national level to use international experience in further improving the regulatory and supervisory system in Ukraine. The block diagram of the regulation and supervision of financial institutions activities in the EU countries was designed, based on a combination of state and market subsystems. The analysis of the features of the implementation of state regulation and supervision of the financial institutions activities at the national level in the EU countries – Germany, Italy, Great Britain was carry out. It was revealed that the effectiveness of the functioning of the sectoral model with a large number of authorized bodies depends on the level of interaction and information exchange between them and a clear distribution of powers between these bodies. It was proved that there are no significant fundamental differences between the consolidated system implemented in Germany and the integrated system in the UK, since the country's central bank is involved in macroprudential supervision. But, the system of protecting consumers and investors in the UK is more complex than in Germany, since it provides for the functioning of an additional authorized body. It can complicate the process of protecting consumers and investors. The trends in the consolidation and integration of the functions of regulation and supervision of the financial institutions activities are important for Ukraine, because the sectoral approaches used by the Ukrainian supervisory practice in many countries have proved ineffective in the context of the rapid development of financial services markets.
Keywords
