FOREIGN PRACTICE OF SUPERVISION AND CONTROL OVER NON-BANK CREDIT INSTITUTIONS

Abstract

The article is devoted to the review of foreign experience in the field of supervision and control over non-bank credit institutions. As globalization is becoming an inevitable phenomenon for all spheres of life in developed countries, it certainly cannot avoid Ukraine. In today’s environment, the integration of the Ukrainian economy into the global financial system is one of the key vectors of development, which implies the need to adapt to international standards and best practices in the regulation of financial markets. An important step in this integration is the modernization of the system of supervision and control over non-bank credit institutions. First of all, it should be noted that the global practice of distributing powers in the field of state regulation and supervision of financial services markets shows that there are no uniform approaches to its implementation in foreign practice. Therefore, we distinguish three main groups of approaches to supervision of the non-banking sector: the sectoral model, the model of distribution of powers for market and prudential supervision, and the model of concentration of all supervisory functions in a single supervisory authority. The author examines the regulatory system of each member of the group and highlights the specifics of the activities of credit institutions in each country. Special attention is paid to the countries with developed financial markets, where the supervision of non-banking institutions is carried out on the basis of comprehensive and integrated approaches. It is concluded that foreign experience in supervising and controlling non-bank credit institutions is diverse, which is influenced by many factors. For example, countries with different legal systems (e.g., common law in the UK and the US versus continental law in Europe) have different approaches to regulating and supervising financial institutions. In addition, when implementing foreign experience in the domestic system of supervision over non-bank credit institutions, the specifics of the operation of a particular mechanism in other countries should be taken into account, taking into account a number of factors.