{"id":10156,"date":"2018-11-20T10:00:55","date_gmt":"2018-11-20T08:00:55","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=10156"},"modified":"2018-12-13T12:58:10","modified_gmt":"2018-12-13T10:58:10","slug":"the-effectiveness-of-state-regulation-and-supervision","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/the-effectiveness-of-state-regulation-and-supervision\/","title":{"rendered":"Cherkashyna Ekateryna, The effectiveness of state regulation and supervision of non-banking financial and credit institutions"},"content":{"rendered":"

[vc_row][vc_column width=”1\/2″][vc_column_text]JEL Classification<\/strong>: G23.[\/vc_column_text][\/vc_column][vc_column width=”1\/2″][vc_column_text]<\/p>\n

DOI<\/strong>:\u00a0https:\/\/doi.org\/10.31521\/modecon.V11(2018)-25<\/a><\/p>\n

[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Cherkashyna Ekateryna<\/strong>, PhD (Economics), Associate Professor of the Department of Banking and Finance Monitoring, University of the State Fiscal Service of Ukraine, Irpin, Ukraine<\/p>\n

ORCID ID<\/strong>: 0000-0001-8651-3883<\/a>
\ne-mail<\/strong>: portosik29@gmail.com<\/a><\/p>\n

The effectiveness of state regulation and supervision of non-banking financial and credit institutions<\/h2>\n

Abstract. Introduction<\/strong>. Ukraine has a typical bank-centered model of the financial market. The banks are predominance among all financial intermediaries in this model. That is why the supervision and regulation are primarily considered banking. It should be noted that the requirements for banking institutions are constantly rising both in relation to the size of capital and the standards of liquidity, profitability and other. At the same time, the requirements for the activities of non-bank financial and credit institutions are much milder than for banks both in the area of capital and in relation to the standards of activity. Last years almost half of the banks have disappeared from the financial sector, and no new ones have emerged. At the same time, the number of non-bank financial institutions, such as financial companies, has grown rapidly. Financial companies primarily carry out one of the banking functions, namely lending and currency exchange transactions.<\/p>\n

Purpose<\/strong>. The purpose of the article is to analyze the effectiveness of state regulation in Ukraine with the further development of directions for its improvement.<\/p>\n

Results<\/strong>. The regulation is a mechanism to ensure that financial institutions enforce current legislation. Supervision is a monitoring of the activities of a non-bank financial and credit institution. Among the priority areas of prudential supervision activities of non-bank financial and credit institutions are the control over compliance with the requirements for disclosure of information, risk management, redundancy and increasing liability of financial institutions for violation. According to the results of the prudential supervision in 2017, 1,177 measures of influence were applied (39.2% less than in the previous year). To financial companies – 373; to credit unions – 278, to insurance companies – 236, to pawnshops – 134, to lessors – 125, to subjects of non-state pension provision – 23, to governors of the Federal Reserve and FON – 8.<\/p>\n

Conclusions<\/strong>. Non-compliance by financial institutions with regulatory requirements is a direct threat to the violation of the rights of consumers of financial services. Indicators of the effectiveness of state regulation and supervision are low volatility of non-bank financial institutions, as well as improvement of their qualitative indicators.<\/p>\n

Key words<\/strong>: regulation; supervision; legislation; non-bank financial and credit institutions; financial companies.<\/p>\n

References:<\/strong><\/p>\n

    \n
  1. Naumenkova, S. V. and Mishchenko, V. I. (2010). Systema Regulyuvannya Rynkiv Finansovykh Poslug Zarubizhnykh Krain<\/em> [The System of Regulation of the Markets of Financial Services of Foreign Countries]. Center of Sci. Studies of the NBU, Kyiv, Ukraine.<\/li>\n
  2. Naumenkova, S. V. and Mishchenko, S. V. (2010). Rynok Finansovykh Poslug<\/em> [The Market of Financial Services], Znannya, Kyiv, Ukraine.<\/li>\n
  3. Pshyk, B. I. (2017). \u201cProblems of non-banking financial services markets development in Ukraine and ways of their\u201d. Efektyvna ekonomika, <\/em>9, retrieved from: http:\/\/www.economy.nayka.com.ua\/?op=1&z=5759 (Accessed 01 September 2018).<\/li>\n
  4. Richni zvity Natskomfinposluh<\/em> [Site NFP \u201cAnnual reports NFP\u201d], retrieved from: https:\/\/www.nfp.gov.ua\/ua\/Richni-zvity-Natskomfinposluh.html (Accessed 01 September 2018).<\/li>\n
  5. Verkhovna Rada of Ukraine (2011), The Law of Ukraine \u201cAbout financial services and state regulation of financial services markets\u201d<\/em>, retrieved from: http:\/\/zakon.rada.gov.ua\/laws\/show\/2664-14 (Accessed 01 September 2018).<\/li>\n
  6. Pro Natsionalnu komisiu, shcho zdisniuie derzhavne rehuliuvannia u sferi rynkiv finansovykh posluh [About National Commission that carries out state regulation in the field of financial services markets], retrieved from: http:\/\/zakon.rada.gov.ua\/laws\/show\/1070\/2011 (Accessed 01 September 2018).<\/li>\n
  7. Nazionalnii bank Ukrainy<\/em> [Site National Bank of Ukraine], retrieved from: http:\/\/qps.ru\/nNpQY (Accessed 01 September 2018).<\/li>\n
  8. The regulation of non-bank financial institutions : the United States, the European Union, and other countries (English), retrieved from: http:\/\/qps.ru\/nM3Gh (Accessed 01 September 2018).<\/li>\n
  9. Banking regulation 2018 in USA, retrieved from: https:\/\/is.gd\/J4lM3M (Accessed 01 September 2018).<\/li>\n
  10. Zdenko Prohaska, Bojana Olgi\u0107 Dra\u017eenovi\u0107 Supervision Of Non-Banking Financial Institutions In Croatia, retrieved from: https:\/\/is.gd\/5QuAla (Accessed 01 September 2018).<\/li>\n<\/ol>\n

    Received<\/strong>: 02 September 2018<\/p>\n

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    Cherkashyna, E. F. (2018). \u201cThe effectiveness of state regulation and supervision of non-banking financial and credit institutions\u201d, Modern Economics<\/em>, vol.\u00a011(2018), pp.\u00a0154-159. DOI: https:\/\/doi.org\/10.31521\/modecon.V11(2018)-25.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    [\/vc_column_text][vc_column_text]<< Back to contents<\/a>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/section>","protected":false},"excerpt":{"rendered":"

    [vc_row][vc_column width=”1\/2″][vc_column_text]JEL Classification: G23.[\/vc_column_text][\/vc_column][vc_column width=”1\/2″][vc_column_text] DOI:\u00a0https:\/\/doi.org\/10.31521\/modecon.V11(2018)-25 [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Cherkashyna Ekateryna, PhD (Economics), Associate Professor of the Department of Banking and Finance Monitoring, University of the State Fiscal Service of Ukraine, Irpin, Ukraine ORCID ID: 0000-0001-8651-3883 e-mail: portosik29@gmail.com The effectiveness of state regulation and supervision of non-banking financial and credit institutions Abstract. Introduction. Ukraine has a typical bank-centered
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