CHALLENGES IN REGULATION OF UKRAINIAN BANK IN THE TRANSITION PERIOD

Анотація

Abstract. Global banking system evolved over centuries, creating a solid background for the functioning of market-driven economics and enabling faster and simpler circulation of funds and financial instruments. Currently bank regulation and assessment of bank-related risks emerges as a high-priority issue for Eastern Europe, particularly Ukraine due to the need for a relatively young banking system, being the core of national economy, to account for vulnerabilities and exposures highlighted by the Global financial crisis and prevent the collapse of existing relations on national and transnational levels in the process of Ukrainian banking sector transformation, which was bound to transpire after the rejection of dollar-pegging for the national currency in February 2014. This article shall highlight the primary vulnerabilities and exposures of Ukrainian banking system in light of recommendations voiced by the global financial community and national economic agents in three risk segments – endogenous, exogenous and emergency – and argue for the need to concentrate NBU’s efforts on setting up secondary channels for information transfer within individual financial institutions and boosting the regulator’s reputation, stimulating national business to work within legal boundaries by increasing legislation transparency, especially with respect to taxation, monetary regulations and property rights, as well as forge new legislation and regulatory boundaries for controlled growth of the fund market’s importance to the national economy. Key words: banking system, regulation, Ukraine, Basel, risk, transparency.

Класифікація

Схожі роботи