Аpplication of the EU experience of the financial systems’ transformation in the context of the debt crisis for Ukraine

doi:10.26565/2310-9513-2020-11-03

Abstract

Transformation of financial systems is an extremely important process because the stability of the world economy depends on their adequacy, balance and efficiency. The financial systems of the EU countries have undergone a number of transformations, during which new mechanisms to strengthen economic governance were created. However, not all problems have been solved yet. The debt crisis has revealed existing weaknesses in the structure, thus provoking the need to strengthen the financial architecture by solving existing problems, while identifying and preventing possible future threats. The subject of research of the article is main directions of the transformation of the European financial system in the context of the debt crisis. The goal is to summarize the EU financial systems’ main directions of transformation in the context of the debt crisis and to identify the possibilities of their application for Ukraine. General scientific methods are used, such as system analysis which allowed to collect and systemize statistical data on EU countries and Ukraine for further analysis, correlation analysis and trend analysis, which allowed to determine the cumulative effect of unsecured bank loans and long-term government bonds yields of the EU countries and Ukraine on the level of their public debt. The following results were obtained: correlation analysis show the existence of correlation between unsecured bank loans and long-term government bonds yields of the EU countries and Ukraine with the level of their public debt. Conclusions: there are quite a lot of possibilities of application of the EU experience of the financial systems’ transformation for Ukraine. One of the basic is introduction of annual banks stress testing; further convergence of banking sector regulation to the requirements of Basel 3 and implementation of LCR; initiation of the process of creating a single mega regulator of the financial market.

Highlights

The debt crisis in the euro area has highlighted the need for a more stable EU financial system
The current stage of transformation of the financial systems of the EU countries provides for the emergence of new supranational institutions, as well as a change in the old ones that operated on the previous stages
Measures, aimed to transform the national financial systems of the EU countries began when the debt crisis became a threat to the existence of the union itself

Summary

Introduction

The debt crisis in the euro area has highlighted the need for a more stable EU financial system. The current stage of transformation of the financial systems of the EU countries provides for the emergence of new supranational institutions, as well as a change in the old ones that operated on the previous stages. Ukraine is actively using the experience of EU countries in the transformation of the financial system. 11, 2020 necessary to take into account the differences in the economic development of EU countries and Ukraine and to adapt the European experience to Ukrainian realities. The study is of both scientific and practical interest

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