Regulation of banking activities in the context of the social and economic development of the European Union

The features of the world market of banking services, of which the European Union is a part have been analyzed in the article. Features, scale and dynamics of this market, its role in the socio-economic development of the EU member states have been shown. The characteristics of cross-cultural differences in the functioning of banking systems in different EU member states have been given. The socio-economic nature and modern mechanisms for regulating banking activities have been disclosed in the interests of stabilizing the macroeconomic indicators of the national economy and improving business performance. The advantages and weaknesses of the liberal and administrative concepts of banking regulation have been shown. Differences in the functioning of national banks in the EU member states have been disclosed. The role and mechanism of the European Central Bank's influence on the social and economic development of the European Union have been analyzed. The problems of the functioning of the banking system of the EU after the withdrawal of the Great Britain from the European Union have been revealed. The article describes the ways of integration of the banking system of Ukraine into the financial structure of the European Union in the context of the implementation of the Agreement between Ukraine and the EU on a free trade area. Attention have been drawn to the need to take into account the significant differences in the levels of development of the banking business of Ukraine and the EU, in particular the ratio of net loan portfolio and gross domestic product, which in Ukraine is respectively 0.45, and in Poland 0.7 with double the GDP. The directions of the convergence of the European and Ukrainian banking systems have been shown on the basis of the increase in the European international trade turnover.