REGISTRATION CERTIFICATE

KV #19905-9705 PR dated 02.04.2013.

 FOUNDERS

RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE)

According to the decision No. 802 of the National Council of Television and Radio Broadcasting of Ukraine dated 14.03.2024, is registered as a subject in the field of print media.
ID R30-03156

 PUBLISHER

Liburkina L. M.

 SITE SECTIONS

Main page

Editorial staff

Editorial policy

Annotated catalogue (2011)

Annotated catalogue (2012)

Annotated catalogue (2013)

Annotated catalogue (2014)

Annotated catalogue (2015)

Annotated catalogue (2016)

Annotated catalogue (2017)

Annotated catalogue (2018)

Annotated catalogue (2019)

Annotated catalogue (2020)

Annotated catalogue (2021)

Annotated catalogue (2022)

Annotated catalogue (2023)

Annotated catalogue (2024)

Thematic sections of the journal

Proceedings of scientific conferences

Effective Regulation of the Financial Sector in the Conditions of Transformation: A Hybrid Vertical Model
Rudevska V. I., Pohorila O. V.

Rudevska, Viktoriia I., and Pohorila, Olena V. (2023) “Effective Regulation of the Financial Sector in the Conditions of Transformation: A Hybrid Vertical Model.” Business Inform 5:159–166.
https://doi.org/10.32983/2222-4459-2023-5-159-166

Section: Finance, Money Circulation and Credit

UDC 336.76

Abstract:
The financial sector is a critical component of the modern economy, but it is also subject to a variety of risks and challenges that can threaten its stability and sustainability. Politicians and regulators have developed different principles and methods of regulating the financial sector, but the effectiveness of these methods remains a matter of debate. The article is aimed at identifying problems and opportunities to ensure an effective and integrated approach to regulating the financial sector. The article analyzes the evolution of regulation of the financial sector during the period of transformation, explores four levels of regulation of the financial sector, including self-, micro-, meso-, and macro-prudential regulation. A comparative analysis of the main roles, tasks, characteristic risks, as well as interdependence and interrelations between bodies and institutions of prudential regulation is carried out. Based on the analysis of the existing methodology, a new hybrid vertical model of regulation has been proposed, which aims to provide a more efficient and integrated approach to regulating the financial sector. This hybrid model combines the strengths of macro- and meso-prudential regulation to provide a more targeted and accurate approach to risk management in the financial sector. The carried out analysis shows that while each level of regulation has its strengths and limitations, a hybrid approach that combines different levels of regulation can provide a more effective and comprehensive approach to regulating the financial sector. The hybrid vertical model of macro- and mesoregulation proposed by the authors can contribute to further research, discussion and development of financial sector regulation.

Keywords: regulation of the financial sector, meso-prudential regulation, hybrid vertical model, transformation.

Fig.: 2. Tabl.: 2. Bibl.: 19.

Rudevska Viktoriia I. – Doctor of Sciences (Economics), Associate Professor, Associate Professor, Department of Financial Technologies and Consulting, Ivan Franko National University of Lviv (1 Unіversytetska Str., Lvіv, 79001, Ukraine)
Email: [email protected]
Pohorila Olena V. – Postgraduate Student, Ivan Franko National University of Lviv (1 Unіversytetska Str., Lvіv, 79001, Ukraine)
Email: [email protected]

List of references in article

Vo, L. V., and Le, H. T. T. “From Hero to Zero - The Case of Silicon Valley Bank“. SSRN, art. 4394553 (2023). DOI: http://dx.doi.org/10.2139/ssrn.4394553
“Is Credit Suisse the Next Lehman Brothers?“ BFSI.com. March 16, 2023. https://bfsi.economictimes.indiatimes.com/news/financial-services/is-credit-suisse-the-next-lehman-brothers/98685937
Dziun, O. B. “Svitovyi dosvid stvorennia meharehuliatora na rynku finansovykh posluh“ [World Experience of Creating a Mega-Regulator for the Financial Services Market]. Derzhavne upravlinnia: udoskonalennia ta rozvytok. 2014. http://www.dy.nayka.com.ua/?op=1&z=695
Naumenkova, S. V. “Bazel I, II, III: rozvytok pidkhodiv dlia zmitsnennia rehuliatornoi osnovy“ [Basel I, II, III: The Development of Approaches for Strengthening of Prudential Framework]. Visnyk Kyivskoho natsionalnoho universytetu imeni Tarasa Shevchenka. Seriia «Ekonomika», no. 12 (2015): 39-47. DOI: http://dx.doi.org/10.17721/1728-2667.2015/177-12/5
Bondarenko, Ye. P. “Mekhanizm rehuliuvannia rynku finansovykh posluh Ukrainy“ [The Mechanism of Regulation of the Market of Financial Services of Ukraine]: avtoref. dys. ... kand.. ekon. nauk : 08.00.08, 2011.
Baranovskyi, O. I., Levchenko, V. P., and Polishchuk, Ye. A. “Diialnist nebankivskykh finansovykh ustanov za obstavyn neperebornoi syly“ [Activities of Non-banking Financial Institutions Under Circumstances of Force Majeure]. Aktualni problemy ekonomiky. 2015. https://ir.kneu.edu.ua/bitstream/handle/2010/29501/baranovskyi.pdf?sequence=2&isAllowed=y
Shovkoplias, H. “Zaprovadzhennia mizhnarodnykh standartiv rehuliuvannia rynkiv finansovykh posluh v Ukraini: pravovyi aspekt“ [Implementation of International Standards of Regulation of Financial Services Markets in Ukraine: Legal Aspect]. Pidpryiemnytstvo, hospodarstvo i pravo. 2017. http://pgp-journal.kiev.ua/archive/2017/12/24.pdf
Rozvytok finansovoho rynku Ukrainy v umovakh yevropeiskoi intehratsii: problemy ta perspektyvy [Development of the Financial Market of Ukraine in the Context of European Integration: Problems and Prospects]. Kharkiv: Disa plius, 2019.
Mishra, P., and Reshef, A. “How do central bank governors matter? Regulation and the financial sector“. Journal of Money, Credit and Banking, vol. 51, no. 2-3 (2019): 369-402. DOI: https://doi.org/10.1111/jmcb.12578
McDonald, J., and Johnson, Sh. M. “Tax Policies to Improve the Stability of Financial Markets“. Bank of Italy Occasional Paper. SSRN, March (2010). DOI: http://dx.doi.org/10.2139/ssrn.1985204
Hertog, J. “Review of Economic Theories of Regulation“. Working Papers from Utrecht School of Economics. 2010. https://www.uu.nl/sites/default/files/rebo_use_dp_2010_10-18.pdf
Boiarko, I. M. et al. “Kontseptualizatsiia mezoprudentsiinoho bankivskoho nahliadu i rehuliuvannia z pozytsii formuvannia efektyvnoi biznes-arkhitektury bankivskoho sektoru“ [Conceptualization of Mesoprudential Banking Supervision and Regulation from the Standpoint of Forming an Effective Business Architecture of the Banking Sector]. Finansovyi prostir, no. 2 (2022): 57-67. DOI: https://doi.org/10.30970/fp.2(46).2022.576768
Catullo, E., Giri, F., and Gallegati, M. “Macro- and Microprudential Policies: Sweet and Lowdown in a Credit Network Agent-based Model“. Macroeconomic Dynamics, vol. 25, no. 5 (2021): 1227-1246. DOI: https://doi.org/10.1017/S1365100519000634
Gennaioli, N., Shleifer, A., and Vishny, R. “Neglected risks, financial innovation, and financial fragility“. Journal of Financial Economics, vol. 104, no. 3 (2012): 452-468. DOI: https://doi.org/10.1016/j.jfineco.2011.05.005
Tarullo, D. K. “Financial Regulation Since the Crisis. Speech to Federal Reserve Bank of Cleveland and Office of Financial Research“. Financial Stability Conference. Washington, DC, USA, 2016. https://www.bis.org/review/r161205f.pdf
Walker, G. “Endogenous, Exogenous and Existential Risk - New Global Solutions“. The International Lawyer. 2022. https://international.vlex.com/vid/endogenous-exogenous-and-existential-907233901
Kashyap, A. K., Stein, J. C., and Hanson, S. “An Analysis of the Impact of 'Substantially Heightened' Capital Requirements on Large Financial Institutions“. Booth School of Business, University of Chicago, 2010. https://www.hbs.edu/faculty/Pages/item.aspx?num=41199
Goodhart, L. M. “Brave New World? Macro-prudential Policy and the New Political Economy of the Federal Reserve“. Review of International Political Economy, vol. 22, no. 2 (2015): 280-310. DOI: https://doi.org/10.1080/09692290.2014.915578
Balling, M. et al. States, Banks and the Financing of the Economy: Monetary Policy and Regulatory Perspectives. Vienna: SUERF - The European Money and Finance Forum, 2013.

 FOR AUTHORS

License Contract

Conditions of Publication

Article Requirements

Regulations on Peer-Reviewing

Publication Contract

Current Issue

Frequently asked questions

 INFORMATION

The Plan of Scientific Conferences

 OUR PARTNERS

Journal «The Problems of Economy»