STATE REGULATION OF DOMESTIC FINANCIAL SERVICES MARKET IN THE CONTEXT OF THE EUROPEAN INTEGRATION PROCESS
Journal Title: Вісник Київського національного університету імені Тараса Шевченка. Економіка. - Year 2014, Vol 8, Issue 161
Abstract
In the conditions of globalization the main focus of government policy of Ukraine, both internal and external, is accession to the European community and full participation in the EU. Joining the EU will provide significant opportunities for Ukraine, but also creates a number of problems for financial market participants and regulators of the financial sector. Most of it appears to non-bank financial institutions, which are the weakest link in the national financial market, because in Ukraine is bank's model of the financial market, in which the main role is played by banks (controlling about 85% of financial resources). This paper investigates the evolution of state regulation of domestic financial services market. It is noted that Ukraine's accession to the EU will result in significant pressure on the internal regulators of the financial sector, which primarily have to improve their activities to the level at which discharge their duties regulatory authorities of this integration association. Financial services markets is an important element of financial systems in the EU, and supervision and regulation of financial intermediaries are integral part of economic and financial policies of governments and central banks. In Ukraine, the regulation of financial services is in its infancy, but already established structures require independence in their actions, so it is reasonable to explore the world and European practice of regulation in these markets to further improve the system of national regulation. It should be noted, that we can distinguish, depending on the peculiarities of the national financial systems due to specific historical development, laws, traditions, political structure, level of economic development and government regulation of the economy, three basic models of financial markets regulation in the world: a sectorial, cross-regulation model (twin-picks) and the model of a single supervision (mega-regulator). It was found that in European countries there is a tendency for the transition and implementation of the model of single supervision. The features of the organization of mega-regulator in Europe in the supervision of financial conglomerates are analysed. On this basis, suggestions to improve supervision of the financial services market in Ukraine in terms of European integration are made. For instance, incremental (stage) steps to move to the model of single supervision in financial services are offered, the benefits and risks of the introduction of the model are noted. An elaboration of new strategy for financial sector development in Ukraine, especially the financial services market, is substantiated, also as a necessity for harmonization and unification of national legislation with the European one.
Authors and Affiliations
Ihor Krupka
Keywords
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- EP ID EP404135
- DOI 10.17721/1728-2667.2014/161-8/7
- Views 66
- Downloads 0
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