Money, finances and credit

Feasibility of the financial market mega-regulator model implementing in Ukraine

Economic Annals-XXI

Economic Annals-ХХI: Volume 150, Issue 3-4(2), Pages: 33-36

Citation information:
Kryvenko, L., & Isaeva, O. (2015). Feasibility of the financial market mega-regulator model implementing in Ukraine. Economic Annals-XXI, 3-4(2), 33-36. https://ea21journal.world/index.php/ea-v150-08/

View Full TextDownload PDF

Larysa Kryvenko
D.Sc. (Economics),
Professor,
Ukrainian Academy of Banking of the National Bank of Ukraine
57 Petropavlivska Str., Sumy, 40030, Ukraine
krivenko@uabs.edu.ua

Olena Isaeva
Assistant Professor,
Ukrainian Academy of Banking of the National Bank of Ukraine
57 Petropavlivska Str., Sumy, 40030, Ukraine
o.v.isaieva@uabs.edu.ua

Feasibility of the financial market mega-regulator model implementing in Ukraine

Abstract. Introduction. Recently, an intense discussion of advisability a comprehensive approach to the regulation of the financial market introducing in Ukraine by refusing from the models of departmental regulators for the benefit of the mega-regulator in the circle of scholars and practitioners has taken place. From the point of view of the real sector development, competitiveness increase and market share expand additional financial resources that can be obtained from financial market participants are necessary. Creation of enabling environment for their functioning is an important task of the state, because the mismatch of the regulation mechanism for the financial market participants can lead to negative consequences for the real economy and cause a systemic economic crisis. According to that, the model of financial market regulation study is an important direction of modern economic analysis.

Purpose. To analyze the feasibility and predict possible consequences of a mega-regulator of the financial market creating in Ukraine at the present stage from the standpoint of the sustainable development ensuring for the market.

Results. Positive and negative aspects of implementation the model of the financial market mega-regulator have been formulated. The preconditions necessary for the functioning of such institution have been grounded. The key indicators of the different countries’ financial markets sustainable development in conjunction with their regulatory models are analyzed. The authors conclude that most of the indicators are lower in countries with the mega-regulators, than in countries with sector model or model of «twin peaks» regulations.

Conclusion. It is determined that Ukraine still has not developed the necessary preconditions for the mega-regulator model introduction, which also confirms the inappropriateness of its creation at the present stage.

Keywords: Financial Market; State Regulation; Mega-regulator; Model; Sustainable Development

JEL Classification: E32; E37; E42; E44

References

  1. Pellerin, S., Walter, J. & Wescott, P. (2009). The consolidation of financial market regulation: pros, cons, and implications for the United States. The Federal Reserve Bank of Richmond Working Paper 09-08, 60 p.
  2. Gosse, J.-B., & Plihon, D. (2014). The future of financial markets and regulation: what strategy for Europe?
  3. De Nicol’o, G., & Kwast, M. (2002). Systemic Risk and Financial Consolidation: Are they related? Journal of Banking and Finance, 26, 861-880.
  4. Stiglitz, J. (1991). Government, financial markets and economic development. NBER Working papers series. Cambridge: National bureau of economic research.
  5. Tatom, J. (2011). Financial market regulation: legislation and implications. Springer.
  6. Popravka, О. (2010) Regulation and supervision of financial sector in EU countries, perspectives for Ukraine. Problems and Prospects of Ukraine’s Banking System Development, 10, 263-271 (In Ukr.).
  7. Shkolnyk, І. (2008) Financial market of Ukraine: current state and strategy of development. Sumy: Mriya (In Ukr.).
  8. Kancir, І. (2014). State regulation of financial system of Ukraine. Technological Audit and Manufacturing Reserves, 2/2(16), 58-64 (In Ukr.).
  9. IMF (2011). Financial sector supervision: the twin peaks model (IMF County country report).
    Retrieved from http://www.readbag.com/imf-external-pubs-ft-scr-2006-cr06347
  10. The World Bank (2014). World Development Indicators.
    Retrieved from http://data.worldbank.org/indicator
  11. Reserve Bank of Australia (1995, May). Financial deregulation and financial markets. Reserve Bank of Australia Bulletin.
    Retrieved from http://www.rba.gov.au/publications/bulletin/1995/may/pdf/bu-0595-2.pdf

Received 20.03.2015

View Full TextDownload PDF
In, , , , , ,

More Papers