SYSTEMATIZATION OF APPROACHES TO REGULATION OF FINANCIAL INTERMEDIATION

Abstract

The basic provisions of regulation and supervision of financial intermediaries are disclosed. Supervisory systems may form the following provisions: a clear division of the tasks and functions of the supervisory authorities into individual sectors (banking, insurance and stock); allocating responsibilities of supervisors based on the tasks and functions of the supervisor (prudential oversight of financial intermediaries and regulation of businesses in the financial sector); concentration of all supervisory functions in a single supervisory authority. The peculiarities of functioning of financial market regulators in foreign countries are analyzed. The models of prudential supervision as the degree of integration and the market regulation approaches of financial intermediaries proposed by the World Bank are highlighted. The tendencies of development and institutional influence on the functioning of the financial infrastructure are integrated into the integration or distribution of supervisory functions; the advantages and disadvantages of the mega-regulator and the multi-institutional regulator of the financial market are identified. The mega-regulator enables more efficient diagnosis and prevention of risk sharing between financial intermediaries and individual segments of the financial sector, as well as assessing the real and potential impact of shocks on the financial system as a whole and its individual components. The multi-institutional impact provides a convenient and effective regulation of individual segments of the financial market, taking into account the specificity of their activities. Formation of a financial mega-regulator, functioning of the financial ombudsman of an auxiliary unit for protection of interests of consumers of financial services, existence of several regulators of the financial market, depending on the institutional approach to regulation of financial intermediation, should be focused on promoting rational competition between the institutions and financial institutions, a systematic approach to regulating financial institutions and ensuring the growth of national economies . Key words: financial intermediaries, financial infrastructure, mega-regulator, multi-institutional regulation, prudential supervision, financial ombudsman.