STATE REGULATION OF INTERNET BANKING IN EUROPEAN COUNTRIES

Abstract

The purpose of the study. The purpose of the article is to analyze the state of state regulation of Internet banking in European countries. The subject of the study is the legislation and trends of state regulation of online banking in European countries. The research methodology is based on a comparative analysis of legislation regulating online banking in the EU countries on the example of Switzerland and the UK. The main methods of research are comparative legal analysis, statistical analysis of the development of online banking in the EU countries. Conclusion. The growth of technological innovations in the financial sector and active user demand for financial and technological services have led to the need to develop a regulatory framework for Internet banking in European countries. As a result, the EU seeks to create a single financial space that unites providers and users of Internet banking, so it is constantly improving the regulatory framework. The article defines that the key documents at the EU level for state regulation of online banking are the EU Payment Services Directives (PSD1 2007/64, PSD2 2015/2366, the Reviewed Payment Services Directive PSD2 2021/1230). The main prerequisites for the adoption of the Directive were to create a level playing field for payment service providers, protect consumer rights and increase the provision of payment services by non-banking institutions. It is determined that Directive PSD2 2015/2366 updated the existing legal framework for payment services in the EU and introduced increased requirements for transparency and security. The updated Payment Services Directive PSD2 2021/1230 harmonises business rules for all electronic payment service providers across the EU and creates a tiered authorization regime for non-bank payment service providers such as payment institutions. Commission Delegated Regulation (EU) 2018/389 came into force on September 14, 2019, defining mechanisms for electronic payment transactions and online banking to ensure higher levels of security. The state regulation of online banking is considered on the examples of Great Britain and Switzerland. The Swiss financial sector is one of the most competitive in the world and a leader in cross-border wealth management. It offers a first-class environment for technological innovation and its regulatory system is internationally recognised as exemplary.