Khoruzhyi S. System of consolidated regulation and supervision of financial institutions

In this dissertation author carried out a theoretical generalization and provided a new solution to an important scientific problem, namely, developed a theoretical and methodological foundation for the formation of a system of consolidated regulation and supervision of financial institutions as well as developed methodological approaches and prepared practical recommendations to improve its effectiveness for the stable development of financial institutions. This paper uncovers theoretical groundwork of formation of consolidated regulation and supervision over activities of financial institutions and refines the essence of activity of financial institutions on financial services markets. Author defines the essence of regulation and supervision of financial institutions and improves the conceptual apparatus of consolidated regulation and supervision of financial institutions. The dissertation paper determines peculiarities of the development of approaches to regulation and supervision of financial institutions and identifies five stages in development of these approaches. It has been identified that within these stages the methods, forms and correlation between subsystems of state and market regulation and supervision were improved, which led to changes in the institutional structure of organization of this process towards consolidation at national and interstate levels. The paper also identifies the components of the system of consolidated regulation and supervision of financial institutions as well as its institutional structure. Author substantiates the conceptual approaches to the development of the system of consolidated regulation and supervision of financial institutions, which are able to meet the challenges and cope with the threats caused by changes in social economical and technological factors under the conditions of information evolution. Author also categorizes the mechanisms of market regulation and supervision over the activities of financial institutions, which are realized by performing the functions of self-regulation and self-monitoring. The dissertation reveals the processes of transformation of regulation and supervision systems of financial institutions on the basis of the influence of a certain sector of financial services on the formation of such systems in different countries. Author defined a set of criteria that allowed to identify four models of systems of regulation and supervision of financial institutions as well as to conduct their comparative analysis. Author depicts the features of functioning of the system of regulation and supervision of financial institutions in the European Union and identifies the institutional structure of the system of consolidated regulation and supervision in EU countries, including international, supranational and national subsystems with their powers, which are characterized by the interaction of state subsystem of regulation and supervision with the subsystems of self-organization and self-control. This dissertation includes the analysis of the regulatory and supervisory innovations in the activities of financial institutions, aimed at consolidation of regulation and supervision of financial institutions and financial groups through the convergence of supervisory instruments, composition and scope of information used in the supervisory process, to enable information exchange between authorized bodies and coordination of enforcement measures regarding the activities of financial institutions and financial groups. According to the proposed scientific and methodological approach author conducted an assessment of compliance of Ukrainian practice of regulation and supervision of financial institutions with international standards, that allowed to conclude that the system of consolidated regulation and supervision of financial institutions in Ukraine is currently absent, which in turn, substantiated the relevance of improving the institutional structure of regulation and supervision of financial institutions and the need for further improvement of the domestic regulation and supervision foundation according to the international norms and standards. The dissertation paper laid the groundwork for forming of a complex of measures to adapt the Ukrainian legislation to European standards in order to form a system of consolidated regulation and supervision of financial institutions in Ukraine. Keywords: financial institutions, financial services, regulation and supervision of financial institutions, institutional structure of regulation and supervision, system of consolidated regulation and supervision of financial institutions.