INTEGRATION OF UKRAINE INTO THE GLOBAL FINANCIAL SYSTEM

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INTEGRATION OF UKRAINE INTO THE GLOBAL FINANCIAL SYSTEM

Journal Title: Науковий погляд: економіка та управління - Year 2018, Vol 4, Issue 62

Abstract

Ukraine signed the Association Agreement with the European Union and confirmed its intentions to develop in a European direction. The banking and financial system is governed by the Basel Committee on Banking Supervision. For successful integration into the European and world financial system it is necessary to examine not only the provisions of the recommendations of the Basel Committee, but also the world experience in the establishment and development of the banking system. The Basel Committee on Banking Supervision is the main ideologist for the introduction of common standards for banking regulation. The decisions of this committee are implemented by many countries of the world, in spite of the fact that they are not binding. That is, they belong to so-called «soft law». All the most developed countries in the world, from which the global financial stability depends, have a regulatory framework approved by their central banks that meet the requirements of the Basel Committee. The recommendations of the Basel Committee can be divided into six normative tasks: improved capital quality, increased capital, reduced debt burden, increased coverage of short-term liquidity, increased stable long-term financing, full-scale coverage of risks. Taking into account that Ukraine signed the Association Agreement with the EU and took the course on integration into the world economy, the Basel Committee on Banking Supervision (the last Basel III) is the main methodological document that should regulate the further development of our banking system. The increase of the requirements of the Basel Committee for capital relates to the ratio of available regulatory capital to the risk-weighted assets (RWA) that calculates according to the regulatory rules. Strengthening the requirements for available capital and increasing the volume of risk-weighted assets leads to the growth of the required level of capital adequacy. In addition, it should be noted that now the world financial institutions are actively discussing and preparing to implement Basel IV approved in December, 2017. It is a collection of proposals and standards that should ensure the effective implementation of the recommendations of Basel III. They will be implemented from 1 January 2022 to 1 January 2027.

Authors and Affiliations

Olena Sosedka, Valentin Minyailo

Keywords

EP ID EP450523
DOI 10.32836/2521-666X/2018-4-62-15
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