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ESSENTIAL PRACTICE OF SYSTEMICALLY IMPORTANT BANKS REGULATION

Journal: Bulletin of Taras Shevchenko National University of Kyiv. Economics (Vol.164, No. 11)

Publication Date:

Authors : ;

Page : 65-69

Keywords : systemically important financial institutions; global systemically important banks; domestic systemically important banks; supranational level of financial regulation and supervision;

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Abstract

The paper analyzes specific features of establishment of new regulatory standards of systemically important banks as one of the most priority directions of post-crisis improvement of supranational financial regulation. The essense of active and prearranged initiatives to secure constant activity of global and domestic powerful super-big banking institutions is investigated as well as some approaches as to recovery measures implementation without involvement of taxpayers' funds in case of their financial failure are considered. In particular, the main points are focused on introduction of additional requirements to the sufficiency of capital of global systemically important banks, development of the regulatory mechanisms of domestic systemically important banks by domestic authorities taking into account the specific peculiarities of certain national economies, structural reforms as to separation of traditional banking from the securities transactions for the depositors protection (Volcker rule, USA; Vickers rule, UK), establishment of the Single Supervisory Mechanism for the Eurozone banks, and declaration of necessity to form the Single mechanism for bank bankruptcy resolution etc. Some proposals concerning transformation of domestic system of financial regulation and supervision in Ukraine, like strengthening control of systemically important banks activity and introduction of mega-regulator model are characterized.

Last modified: 2016-08-10 22:42:32