Specialized Financial Court: experience of the United Kingdom and prospects for Ukraine

Economic Annals-ХХI: Volume 192, Issue 7-8(2), Pages: 158-168

Citation information:
Hudima, T., Chaban, O., & Oliukha, V. (2021). Specialized Financial Court: experience of the United Kingdom and prospects for Ukraine. Economic Annals-XXI, 192(7-8(2)), 158-168. doi: https://doi.org/10.21003/ea.V192-13

Tetyana Hudima
D.Sc. (Law),
Deputy Head of Department,
SI «V. Mamutov Institute of Economic and Legal Research of NAS of Ukraine»
60 Taras Shevchenko Blvd., Kyiv, 01032, Ukraine
ORCID ID: https://orcid.org/0000-0003-1509-5180

Olena Chaban
PhD (Law),
Candidate for the Degree of D.Sc (Law),
SI «V. Mamutov Institute of Economic and Legal Research of NAS of Ukraine»
60 Taras Shevchenko Blvd., Kyiv, 01032, Ukraine
ORCID ID: https://orcid.org/0000-0002-8760-7088

Vitalii Oliukha
D.Sc. (Law),
Associate Professor,
Leading Research Fellow,
SI «V. Mamutov Institute of Economic and Legal Research of NAS of Ukraine»
60 Taras Shevchenko Blvd., Kyiv, 01032, Ukraine
ORCID ID: https://orcid.org/0000-0002-3339-1154

Specialized Financial Court: experience of the United Kingdom and prospects for Ukraine

Abstract. The increase of loan defaults is one of the major factors which adversely influence the activity of the banking institutions and banking system in general. Moreover, it results in the financial destabilization and the deterioration of the Ukrainian investment climate. The issues of arrears in the sphere of Banking and Finance together with the inconsistency in judicial approach applied in the course of litigation related to the loan defaults have a negative impact on the Banking ability and willingness to support the development of the national economy. All the mentioned factors lead to the decline of the pace and scale of social production, the welfare of the society. Therefore, the amount of credit debt owed by banking institutions in Ukraine amounts to almost half of their total loan portfolio. This proves the necessity to find new approaches to resolve the challenging situation that exists on the financial market. The international experience of high working standard is deemed to be of a particular importance. Our study is devoted to the analysis of the relevance of establishing the separate specialized financial or credit court in Ukraine. The experience of the United Kingdom in this regard has been analysed and proposals have been made to improve the national judicial system. It has been proved that the creation of a specialized financial court may complicate the work of the judicial system and affect their efficiency. It is argued that the appropriate specialization of individual judges within the commercial jurisdiction and implementation of particular criteria and thresholds for the financial cases to be allocated to and heard by the commercial courts of Ukraine are much more efficient and effective steps.

Кeywords: Loan Arrears; Financial Destabilization; Specialized Financial Court; Judicial System; Bank; Financial System; United Kingdom; Ukraine

JEL Classification: K41; K20; G21; G18

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

Data Availability Statement: The dataset used is publicly available from The National Bank of Ukraine and The Commercial Court Reports of The United Kingdom and other official sources referred in the paper.

DOI: https://doi.org/10.21003/ea.V192-13


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Received 26.05.2021
Received in revised form 14.06.2021
Accepted 19.06.2021
Available online 21.09.2021
Updated version of the paper as of 31.12.2021