Zachosova Nataliia, DSc (Economics), Associate Professor, Professor of the Department of Management and Economic Security, Bogdan Khmelnitsky National University of Cherkassy, Cherkassy, Ukraine

ORCID ID: 0000-0001-8469-3681
e-mail: natazachosova@gmail.com

Nosan Nataliia, PhD (History), Associate Professor, Associate Professor of the Department of Economics and Entrepreneurship, Cherkasy State Technological University, Cherkassy, Ukraine

ORCID ID: 0000-0002-4005-8333
e-mail: natali_nosan@ukr.net

Bauer Gulia, Master’s Degree in Management and Economic Security, Bogdan Khmelnitsky National University of Cherkassy, Cherkassy, Ukraine

ORCID ID: 0000-0001-7494-5523
e-mail: bauer.g1988@gmail.com

New Developments in State Regulation of Banking Safety and Security of the Non-Banking Financial Market: Expectations from SPLIT

Abstract. Introduction. The financial market of Ukraine is in a state of instability now, but it is still beginning to show signs of a post-crisis recovery. Therefore, at the state level, the most important issue is the search for the most effective model of financial market regulation aimed at the priority of ensuring banking safety and security of the non-banking financial sector. It will simultaneously stimulate the development of financial services markets and will have a positive impact on the economic system of the country as a whole.

Purpose. The purpose of the article is to clarify innovative approaches to state regulation of banking safety and security of the non-banking financial sector that will appear in the process of transition to the model of the existence of two regulators in the financial market, as well as systematization of the advantages and disadvantages of regulatory processes that await professional participants in financial services markets after the introduction of split – the division of functions between regulatory institutions in the financial market.

Results. Innovations of legislative initiatives on regulation of banking and non-bank segments of the financial market are analyzed. The role of state regulation in the process of ensuring the safety of the functioning and development of financial services markets is explored. The expectations of participants of the banking and non-bank segments of the financial market from the split of functions of national regulators are generalized. The ways of avoiding possible negative consequences from the transition to a two-vector mode of the financial services market and its participants regulation are offered.

Conclusions. According to the results of the study, the following ways of avoiding possible negative consequences from the transition to a two-vector regime for regulating the financial services market and its participants are as follows: to start multilateral negotiations with market participants to clarify and take into account their attitude to the transformation of the regulatory mechanism, to create a unified statistical database of the functioning of financial institutions, to establish networks and advisory centers for coordinating the activities of financial market participants and clarifying new rules of financial work in the banking and non-bank segments of the financial system.

Keywords: financial market; regulation; national regulator; banking safety; non-banking financial market.

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