Principles of market regulation and supervision of financial institutions

 

Financial market regulation and supervision of financial institutions should create an efficient and competitive financial market, which would respond to the needs of investors and consumers of financial services to provide quality financial services at a reasonable price.

Between the level of protection of investors and consumers of financial services, which offers financial market regulation and supervision of financial institutions, and the cost of financial institutions is always a vzaemoravnovesie. The lower the perception of risk by financial institutions and the financial system as a whole, the more effective should be regulated and supervised.

Financial market regulation and supervision of financial institutions can not act as a guarantee against bankruptcy. In a market economy, bankruptcy is the counterparty risk, which takes on the financial institution. The procedure of bankruptcy, losses that will be incurred in this is an issue that generates discussion about the degree of support for the financial system at the expense of investors and consumers of financial services. Therefore, such issues can not be only in the field of view of government regulation and oversight.

Regulatory agencies and supervisors must dynamically respond to the changes in the market, be willing to periodically review the policies and practices of regulation and supervision to the new developments and trends in the market. This requires a sufficiently flexible legal system.

The purpose of market regulation and supervision of financial institutions in Ukraine:

• implementation of a unified state policy in the financial market of Ukraine;

• Protecting the rights of investors and consumers of financial services through the application of measures to prevent and end violations of the law in the financial market, the use of a certain person of sanctions for violation of the law;

• the strategic systemic issues of financial market development in Ukraine:

• Ensuring equal opportunities for access to the financial market and protect the rights of its members;

• coordinating the activities of state regulation of the market and supervision of financial institutions;

• Control the transparency and openness of the market;

• compliance with legal requirements by market participants;

• Development of economic competition and unfair competition in the financial market;

• contribute to the adaptation of the national market to international standards.

Forms of market regulation and supervision of financial institutions in Ukraine:

• State registration of financial institutions;

• licensing of certain types of financial institutions;

• legal regulation of financial institutions, as well as the requirements for financial institutions, including the disclosure requirements for financial institutions to themselves, their services, and statements of financial institutions;

• control over the activities of financial institutions;

• supervision of financial institutions;

• the application of measures of state coercion to financial market participants.

Financial market regulation and supervision of financial institutions based on three objectives:

1) protection of investors and consumers of financial services;

2) ensure that equity, efficiency and transparency of the financial markets;

3) reduction of systemic risk as investors and consumers of financial services, and financial institutions.

 

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