Shavshukov, V.M.; Zhuravleva, N.A. National and International Financial Market Regulation and Supervision Systems: Challenges and Solutions. J. Risk Financial Manag.2023, 16, 289.
Shavshukov, V.M.; Zhuravleva, N.A. National and International Financial Market Regulation and Supervision Systems: Challenges and Solutions. J. Risk Financial Manag. 2023, 16, 289.
Shavshukov, V.M.; Zhuravleva, N.A. National and International Financial Market Regulation and Supervision Systems: Challenges and Solutions. J. Risk Financial Manag.2023, 16, 289.
Shavshukov, V.M.; Zhuravleva, N.A. National and International Financial Market Regulation and Supervision Systems: Challenges and Solutions. J. Risk Financial Manag. 2023, 16, 289.
Abstract
The purpose of this original study is to critically analyze the emergence and development of the national models of financial regulation; international standards and codes; regional and national financial regulation and supervision (the case of UK, USA, Sweden, EU and Finland). The research raises both academic and regulatory concerns. It aims at shaping changes (innovations) in the supervisory practices of national and international regulators in response to new developments in FinTech markets, digital products, financial instruments and risks. Secondly, it will stimulate more systematic work on regulatory databases, registration and reporting procedures in various economies in different financial markets. The author identifies five main systems of national financial regulatory markets: the multi-tiered, multi-agency US system; the Twin Peaks model (UK); the mega-regulatory model (Sweden). There is a thorough review of international standards and institutions that work for the stability of financial systems. The analysis of regional and national systems of financial regulation and supervision is based on the examples of the EU and Finnish institutions. National macro and microeconomic regulation and supervision have been examined with a focus on the US Federal Reserve and the US Treasury. National and international regulatory institutions have been evolving along several lines. First, minimum capital and credit risk requirements for banks (80s of the 20th century) are complemented in the 21st century by buffer reserves, liquidity and leverage standards. Second, regulation focuses on ensuring the sustainability of the national economy. The regulatory focus is on ensuring the sustainability of national and global financial systems. Third, there is an increase in the number of supervised institutions. Fourth, there is a division of functions between central banks (macroeconomic regulation) and one or two mega-regulators (microeconomic regulation and supervision). Fifth, there is a division of labour between the international financial institutions (BIS, IMF, WB) and national regulators. Sixth, the focus is on protecting consumers and investors, and countering money laundering and the financing of terrorism. Seventh, there is an understanding for a common approach by central banks to new financial technologies and cybersecurity.
Keywords
financial markets; national regulatory models; principles and methods of supervision
Subject
Business, Economics and Management, Finance
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
