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The subject of research of this work is the current direction in the financial activities of small industrial enterprises – financial express analysis. The purpose of the study is to develop a scientific and methodological basis for a simplified procedure of financial supervision of small industrial enterprises in the country in order to provide qualified assistance to managers of small industrial enterprises in the financial sphere of their activities. The article solves the following tasks: study of the state of small industrial enterprises and their role in the development of Ukraine's economy, definition of "financial supervision", development of algorithm for financial express analysis of small industrial enterprises, choice of directions for financial express analysis of small industrial enterprises financial supervision, the formation of a bank of input data on four components, testing of scientific and methodological support on the example of a particular enterprise. The following methods are used: theoretical generalization, retrospective analysis, comparative analysis, analytical, analysis and synthesis, rapid analysis. The following results were obtained: the method of financial express analysis of a small industrial enterprise was proposed on the basis of financial supervision; selected areas of financial analysis under a simplified procedure; the scheme of algorithm of carrying out procedure of financial supervision is developed; the bank of the input data which are necessary for the decision of the set task is formed; substantiation of the choice of applied mathematical models is carried out; the experimental approbation of the offered scientific and methodical approach to carrying out the financial express-analysis on the factual basis of the real small industrial enterprise is carried out; appropriate recommendations were given to the management of the researched enterprise. Conclusions: It is determined that in the current unstable economic conditions, small industrial enterprises need professional assistance of consulting orientation in financial activities. Obtaining up-to-date relevant information on the financial condition of small industrial enterprises is a very important task that requires a rapid financial analysis of their activities. The study of this issue showed the lack of consensus of analysts on the directions and methods of financial rapid analysis. This led to the need and feasibility of developing for the management of small industrial enterprises under a simplified procedure of an orderly methodology of financial rapid analysis on the basis of financial supervision., Предметом исследования данной работы является современное направление в финансовой деятельности малых промышленных предприятий - проведение финансового экспресс-анализа. Целью исследования является разработка научно-методического основания для проведения по упрощенной процедуре финансовой супервизии деятельности малых промышленных предприятий страны с целью оказания квалифицированной помощи руководителям малых промышленных предприятий в финансовой сфере их деятельности. В статье решаются следующие задачи: исследование состояния малых промышленных предприятий и их роль в развитии экономики Украины, определение дефиниции понятия «финансовая супервизия», разработка алгоритма проведения финансового экспресс-анализа малого промышленного предприятия, выбор направлений проведения финансового экспресс-анализа малых предприятий промышленности на основе финансовой супервизии, формирование банка входных данных по четырем составляющим, апробация научно-методического обеспечения на примере конкретного предприятия. Используются следующие методы: теоретическое обобщение, ретроспективный анализ, сравнительный анализ, аналитический анализ и синтез, экспресс-анализ. Получены следующие результаты: в работе предложено на основе финансовой супервизии методику проведения финансового экспресс-анализа малого промышленного предприятия; избран направления проведения финансового анализа по упрощенной процедуре; разработана схема алгоритма проведения процедуры финансового супервизии; сформирован банк входных данных, которые необходимы для решения поставленной задачи; проведено обоснование выбора прикладных математических моделей; проведена экспериментальная апробация предложенного научно-методического подхода к проведению финансового экспресс-анализа на фактологической базе реального малого промышленного предприятия; даны соответствующие рекомендации руководству исследуемого предприятия. Выводы: Установлено, что в современных нестабильных условиях хозяйствования малые промышленные предприятия нуждаются в профессиональной помощи консультационной направленности в финансовой деятельности. Получение актуальной релевантной информации о финансовом состоянии малых промышленных предприятий является очень актуальной задачей, требующей проведения финансового экспресс-анализа их деятельности. Изучение данного вопроса показало отсутствие единого мнения аналитиков относительно направлений и методов проведения финансового экспресс-анализа. Это обусловило необходимость и целесообразность разработки для руководства малых промышленных предприятий по упрощенной процедуре упорядоченной методики финансового экспресс-анализа на основе финансовой супервизии., Предметом дослідження даної роботи є сучасний напрямок у фінансовій діяльності малих промислових підприємств – проведення фінансового експрес-аналізу. Метою дослідження є розробка науково-методичного підґрунтя для проведення за спрощеною процедурою фінансової супервізії діяльності малих промислових підприємств країни з метою надання кваліфікованої допомоги керівникам малих промислових підприємств у фінансовій сфері їх діяльності. В статті вирішуються наступні завдання: дослідження стану малих промислових підприємств та їх ролі в розвитку економіки України, визначення дефініції поняття «фінансова супервізія», розробка алгоритму фінансового експрес-аналізу малого промислового підприємства, вибір напрямків проведення фінансового експрес-аналізу малих підприємств промисловості на засадах фінансової супервізії, формування банку вхідних даних за чотирма складовими, апробація науково-методичного забезпечення на прикладі конкретного підприємства. Використовуються такі методи: теоретичне узагальнення, ретроспективний аналіз, порівняльний аналіз, аналітичний, аналіз та синтез, експрес-аналіз. Отримано наступні результати: в роботі запропоновано на засадах фінансової супервізії методичні рекомендації щодо проведення фінансового експрес-аналізу малого промислового підприємства; обрано напрямки проведення фінансового аналізу за спрощеною процедурою; розроблено схему алгоритму реалізації фінансової супервізії; сформовано банк вхідних даних, які необхідні для вирішення поставленого завдання; проведено обґрунтування вибору прикладних математичних моделей; проведено експериментальну апробацію запропонованого науково-методичного підходу до проведення фінансового експрес-аналізу на фактологічній базі реального малого промислового підприємства; надано відповідні рекомендації керівництву досліджуваного підприємства. Висновки: Досліджено фінансові результати функціонування суб’єктів господарювання у сфері малого бізнесу. Визначено, що у теперішній час малі промислові підприємства України потребують професійної допомоги консультаційної спрямованості у фінансовій сфері своєї діяльності. Було розроблено науково-методичне підґрунтя для фінансової супервізії з використанням методу експрес-аналізу, складено та описано етапи схеми алгоритму проведення фінансового експрес-аналізу за спрощеною процедурою. Проведено апробацію реалізації алгоритму на фактологічній базі конкретного малого промислового підприємства, зроблено конкретні рекомендації.&nbsp

Macroprudential policy is increasingly being implemented worldwide. Its effectiveness in influencing bank credit and its substitution effects beyond banking have been a key subject of discussion. Our empirical analysis confirms the expected effects of macroprudential policies on bank credit, both for advanced economies and emerging market economies. Yet we also find evidence of substitution effects towards nonbank credit, especially in advanced economies, reducing the policies’ effect on total credit. Quantity restrictions are particularly potent in constraining bank credit but also cause the strongest substitution effects. Policy implications indicate a need to extend macroprudential policy beyond banking, especially in advanced economies.

В статье проанализирована деятельность глобальных регуляторов по принятию мер, направленных на повышение устойчивости мировой экономики к рискам финансовой нестабильности. В статье исследовано содержание и основные направления институциональных реформ в международной финансовой системе. Главная идея статьи - выявить и отразить основные сдвиги во взаимодействии регуляторов финансового рынка в последнее десятилетие.Системный анализ большого объема фактического материала о деятельности международных регуляторов позволил выделить наиболее значимые институты и определить набор мер воздействия на ведущих игроков финансовых рынков. Были изучены принятые международными институтами документы, дана экспертная оценка их релевантности, оценен характер взаимодействия финансовых регуляторов в сопоставлении с институтами других предметных областей, обозначено соподчинение поставленных ими целей, раскрыт порядок функционирования и иерархия рассмотренных институтов. Был сделан вывод о формировании целостной системы глобальных институтов финансового надзора.За десять лет после начала глобального кризиса система стала более разветвленной, но, вместе с тем, осталась консолидированной. Она складывается на базе как давно признанных, так и только утверждающих свою юрисдикцию и легитимность формальных и неформальных международных институтов. В статье выявлено возрастание роли неформальных институтов, которые демонстрируя достаточную гибкость, обеспечивают, вместе с тем, высокий уровень исполнения обязательств. Представляет интерес рассмотренная в работе деятельность специализированных международных институтов финансового надзора, значение которых растет, но не находится в фокусе исследовательского внимания. В статье особенно выделяется банковская деятельность как стержневой объект глобального финансового регулирования, как на уровне отдельных элементов банковского сектора, так и всей системы в целом. В работе выдвигается положение о том, что система международного финансового надзора будет укрепляться и наполняться новыми более эффективными инструментами.

The design of financial supervision for the purposes of implementing anti-money laundering (AML) regulation has become essential in the agendas of governments. This AML regulation has been implemented through the creation of specialized agencies known as Financial Intelligence Units (FIUs). The establishment of FIUs was triggered by international pressures exerted by the Financial Action Task Force (FATF), which at the same time leaves any country free to choose its preferred model. A crucial question thus arises: how do the policymakers select their FIU models? The economics of AML suggests that a financial model of FIU (FFIU) should be the best choice, given its comparative informational advantages. Nevertheless, our empirical analysis of the establishment of FIUs shows a more nuanced reality: after the September 11 terrorist attack, the policymakers preferred the Law Enforcement model of Financial Intelligence Unit (LEFIU). Using a political economy framework, two possible and non-alternative explanations are offered. In order to counteract the terrorist threat, policymakers could have preferred the comparative advantages of the LEFIU model in terms of police and investigation powers. At the same time, politicians could have used September 11 just as an occasion to avoid the establishment of a FFIU with its higher risks of banking capture and/or an over-powerful financial agency.

China is a bank-dominated country, therefore, the sustainability of the Chinese banking industry is important for economic development. In this paper, data envelopment analysis (DEA) was combined with the Malmquist index, and we statically and dynamically analyzed the efficiency of listed banks during the period 2012&ndash, 2017. The results showed that 12 of the 17 banks improved their technical efficiency. The technical efficiency of three banks remained the same, whilst that of two banks had dropped slightly by less than 1.0%. The Chinese government has learned from the lessons of past financial crises to find a way to forestall financial crisis, and implemented macroprudential policy, therefore the banking industry has actively served the real economy and promoted economic development while paying attention to the prevention of financial risks. According to the report of The Banker in 2018, for the first time, the four biggest banks in China topped the list of the Top 1000 World Banks. The research showed that, the Chinese government applied macroprudential framework in the banking supervision, and the listed banks effectively resisted financial risks and realized steady growth. We believe that the macroprudential framework plays a positive role in the economic development and financial stability in China.

Purpose: The purpose of the paper is to identify the factors that affect the development of the models of financial market state supervision and to identify the factors that have influenced the evolution of the supervision model in Poland. Methodology: critical analysis of literature, legal provisions and documents. Findings: The completely integrated and the fully dispersed model of supervision are located at the opposite ends of the spectrum. A variety of the hybrid models can be identified between them. Factors that affect supervision organization are both economic and non-economic. Factors that have influenced the Polish model of supervision include political aspects, administration costs and, in due course, also the development of the financial market. Research implications: The variety of state supervision structures, combined with the ambiguity and multiplicity of factors that affect their evolution create a new research challenge. Significant problems in accessing documents have been identified. Originality: The author presents an overview of models of state supervision of financial markets and factors affecting the evolution and structure of supervision. Conclusions drawn from the analysis were used to identify factors that influence the evolution and supervision of the Polish financial market.

The European Union (EU) institutional framework for financial stability has been redesigned three times since 2000. The financial crisis (2008-2009) and the European debt crisis (2009-) both triggered reforms. The first analytical task of this thesis is to gauge these processes of redesign, and for this purpose I establish three analytical dimensions to assess financial stability frameworks: the level of aggregation, the level of governance, and the functional scope. The second equally important task is to expose why EU Member States tend to mostly agree on piecemeal institutional reforms that may result in crises, without ever addressing the root of the problems associated with financial stability. In order to make progress on this explanatory task I develop a revised ‘failing forward’ argument to uncover the decision-making logic resulting in these incomplete outcomes. It is based on Jones, Kelemen, and Meunier’s (2015) original argument that attempts to reconcile the grand theories of European integration – liberal intergovernmentalism and neofunctionalism. Intergovernmental bargaining drives the outcome towards the lowest common denominator as Member States have to compromise with the least forthcoming governments. Incomplete solutions lead to new crises, and a functional demand for more integration in a sequential cycle. However, in contrast to original argument, I argue that the decision-makers might not necessarily fully understand the risk of piecemeal reforms. Development of the institutional frameworks are based on learning from previous policies. Based on process-tracing of the three reform processes, I find that social learning expands the policy options available for the decision-makers in each phase. The impact of the lowest common denominator bargaining dynamic increases as the policy options expand. Traces of learning are most clearly visible on issues and dimensions that are directly related to economic theory, such as determining the appropriate level to regulate, micro or macro. The Member States negotiate primarily over the level of governance. The evolution of the EU financial stability framework demonstrates that learning is problem- and crisis-driven, and that the pitfalls of intergovernmental bargains become more prominent on controversial issues. Theoretically, this thesis contributes to the integration theory field by revising the failing forward argument to fit a broader set of cases, in addition to the theoretical standard for financial stability frameworks. Politically, it pinpoints structural obstacles to financial stability.

Zagrożenia wynikające z niewłaściwego uregulowania działalności instytucj należących do bankowości równoległej mogą dotknąć zarówno ich klientów, jak i całego systemu finansowego. Zostało to dostrzeżone przez władze finansowe w Polsce (Komisja Nadzoru Finansowego, Narodowy Bank Polski), a także w Unii Europejskiej (Komisja Europejska, Europejski Bank Centralny) oraz w skali światowej (Komisja Stabilności Finansowej). Jednakże zadanie właściwego uregulowania funkcjonowania bankowości równoległej jest dopiero w początkowej fazie realizacji i wymaga od wymienionych instytucji jeszcze wiele pracy.

An increasing number of countries show a trend towards a certain degree of consolidation of powers in financial supervision, which has resulted in the establishment of unified regulators, that are different from the national central banks. By contrast a high involvement of the central bank in supervision seems to be correlated with a multi-authorities regime (central bank fragmentation effect). This paper, using a simple application of a general common agency game, sheds light on which conditions the politicians prefer when implementing an unified sector supervision outside the central bank. From a theoretical point of view the quality of public sector governance plays a crucial role in determining the supervision unification. Focusing on the behaviour of the “good” policymaker (helping hand type), it will prefer a unified financial authority that is different from the central bank if the correspondent welfare gains-linked to at least one of the three effects: moral hazard, conflict of interest, bureaucracy—are considered higher respect to the information losses. The “bad” policymaker (grabbing hand type) will choose the single financial authority if the financial industry likes it, and the central bank is not a captured one. On the other hand, the paper tests the model, confirming the robustness of the institutional position of the central bank in explaining the recent trend in supervision consolidation, with an empirical analysis performed with ordered functions on an updated dataset.

Purpose – The purpose of this paper is to review current trends in reforms of the supervisory architecture in European Union (EU) countries.Design/methodology/approach – Against the background of the debate on the advisability of further centralizing prudential supervision in the EU this paper develops a study of applied institutional economics, analyzing the financial supervisory architecture of each of the 27 EU countries and assesses their degree of institutional convergence. The paper investigate whether the recent wave of reforms are leading to a convergence of the national architectures.Findings – While the degree of supervisory convergence is low, there is no single superior model of bank supervision.Originality/value – The paper contributes to the debate on convergence of supervisory architectures in EU member countries.

The European Commission's Financial Services Action Plan (FSAP) from 1999 is a key document in the political process of building a common framework for financial markets in the EU area. The FSAP and financial regulation at the EU member state level are derived from a complicated mix of policy objectives. Decisions to regulate are based on a very broad spectrum of analysis and research. Important analytical contributions come from financial economics and company and capital market law. Within the framework of the stated policy objectives, both economists and jurists have analysed the need for and the likely effect of different types of regulatory instruments. The aim of the present paper is to combine regulatory objectives and research contributions in a systematic way. The classification system developed by the Journal of Economic Literature (JEL) is applied to categorise the relevant research contributions. Observations in a so-called ‘Objectives/Research Category Matrix’ based on a large sample of references reveal some interesting patterns. There seem to be some systematic differences in the objective orientation of researchers belonging to different JEL-categories. Different academic disciplines approach issues of regulation in different ways and with different analytical paradigms. Researchers whose publications are classified in JEL-category G. Financial Economics, have particularly focused on protection against systemic risk, ensuring company efficiency and ensuring market efficiency. Researchers belonging to JEL-category K. Law and Economics, are primarily concerned with the objective of ensuring company efficiency, market efficiency and to some extent stakeholder protection.

Видання містить вимоги питання для обговорення, проблемні та дискусійні питання, теми рефератів, завдання для самостійної роботи, методичні вказівки що-до їх виконання та рекомендовану літературу. The publication contains requirements discussion questions, problems and discussion questions, themes, essays, exercises for self-study, guidance as to their performance, and recommended literature.

In the wake of the recent economic and financial crisis there is a vivid discussion among academics and practitioners regarding financial regulation and supervision in individual countries, in the European Union and in the world as a whole. The foremost reason for such interest in this subject derives from the role that appropriate legislation and supervision have in ensuring financial stability. Financial stability has been introduced as the new policy goal, although what instruments are to be used and who would do that has not been quite fixed yet. But all agree that regulation and supervision of financial sectors are indispensable for financial stability. In this regard the last financial crisis was somewhat fortunate. This is because it disclosed significant gaps in the current state of knowledge about the nature of financial systems and economic policy in general. In addition it revealed that existing financial regulation and supervision have only exacerbated the crisis. Against this background this dissertation explores and assesses the changes and current state of financial regulation and supervision in the EU. The objective is to determine whether the existing European regulatory and supervisory system (at the supranational level) with its theoretical rationale, objectives and instruments, is adequate to sustain financial stability across the EU (at both national and supranational level) and whether it benefits all financial sectors. The focus is primarily on supranational, EU rules and arrangements ; when the focus shifts to "EU countries", it is solely on Italy and Croatia. Following an interdisciplinary analysis of four building blocks in finance (i.e. financial assets, financial transactions, financial institutions and financial markets) the thesis determines what could be considered as appropriate regulation and efficient supervision that would support financial stability across the EU and at the same time accommodate the needs of future EU members (particularly those of transition economies such as Croatia). In this respect, the thesis argues that the perspective of EU membership puts completely different requirements in front of transition economies, than those put before other EU countries. Namely, it gives predominance to the needs of European enterprises, banks and other financial intermediaries, before these countries have even managed to secure their own social and economic objectives. Hence, the "EU commitment" requires them to forsake an immense part of their national determination in economy and to serve primarily "common needs". In this regard, the "uniformity" brought by EU financial regulation and supervision will damage transition economies the most. Putting aside the political aspect of membership negotiations, the thesis argues that the economic requirements put before transition countries should have been different. In fact, in the case of transition economies "uniformity" shouldn’t have been the goal of EU regulation at all ; the goal should have been to enhance the operation of national economic systems. Simply put, transition economies are too diverse from other "ordinary" EU Member States to be molded into a "single rulebook". Thus, the thesis suggests that centralization is not the appropriate way forward in the development of EU financial regulation. It is true that the recent financial crisis has challenged the understanding of financial regulation and supervision and of the complex relationship between financial and political integration within the EU. But it has also given an opportunity to further explore the interdependence between (de)centralization and financial stability. Although for the time being it seems as the debate regarding "regulatory control" between the national and supranational level is over in favor of greater supranational control of regulation, it remains to be seen whether this environment will equally benefit all EU countries. It is possible that excessive centralization and "regulatory uniformity" will blur the specific interests of smaller EU Member States (especially those of transition economies) in the bigger picture of the "European common good" (that is financial stability for the purpose of the thesis). Regardless of the regulatory and economic success achieved by EU integrations and the significant share of sovereignty delegated by Member States to the EU, the role of nation states still cannot be dismissed. European policymakers cannot proceed on the assumption that the EU may be on the way of becoming a perfectly integrated "super-state". They should accept the restraints of integration – both from their political and economic aspect. The nation states are still a reality, and even when part of a sui generis political and economic integration such as the EU, their regulatory diversity and the right to safeguard national economic interests should be acknowledged.

This paper assesses the determinants of the recent wave of financial supervision reforms, reviewing six different views concerning the determinants of financial supervision architectures: economic view, market view, law view, political view, geography view and institutional view. The empirical tests provide first support for this view: in a setting characterized by a central bank traditionally less involved in supervision a unified model of supervision seems to be more likely to occur. The role of central bank involvement in supervision still holds when its level of monetary independence is taking in account. Furthermore, the probability that a country will move toward a unified model is higher: the smaller the overall size of the economy; when the legal framework is characterized by German and Scandinavian roots. Therefore, also the economic size view and the law view matter.

Finland experienced an extremely severe economic depression in the early 1990s. In the midst of this crisis, significant new legislation was passed that increased supervisory powers of financial market regulators and reformed bankruptcy procedures, significantly decreasing the protection of creditors. We show that the introduction of these new laws resulted in positive abnormal stock returns. The new laws also lead to increases in firms’ Tobin’s q, especially for more levered firms. In contrast to previous studies, our results also suggest that public supervision of financial markets fosters rather than hampers financial market development.

The emergence of financial conglomerates and multinational financial institutions as well as the development of new financial products have raised concerns as to the ability of separate sectoral supervisors and different national authorities to effectively oversee financial markets. Concentrating on the European situation, this paper addresses these concerns by putting special emphasis on the role of organizational form in the supervisory process of financial institutions. I will first outline the developments that have led to increasing pressures to reform the current supervisory systems in Europe, proceed to discuss both some common and specific aspects of supervision of financial conglomerates and multinationals, and, finally, examine the challenges related to the integration of supervision. Using theoretical framework derived from economic theory, this paper points that multitude of factors (eg, several multitasking-related concerns) are likely to affect the effectiveness of integrated supervision.

This article presents an analysis of how legislators on international, European and national level combat the financing of terrorism. The central question in this article is whether European regulations concerning the prevention of money laundering and the financing of terrorism, are effective, proportional and mutually harmonious. Now that many regulations in this field have been established by intra-national bodies, it is important to examine how these regulations are further elaborated in the respective national systems. This article gives a broad overview of legislative initiatives of the UN, USA, FATF, EU and Council of Europe. The Netherlands for numerous reasons serves as a legal example. It is concluded that measures taken or proposed to avoid or at least reduce the financing of terrorism are quite effective to prevent abuse of the financial system. On the other hand, these measures increase the risk of underground or illegal financing, which is even more difficult to control.

This paper presents an analysis of recent trends and determinants in the architectures of financial supervision, focused on the authorities design. We propose a path dependence approach to study the single authority versus multi-authority dilemma, considering the level of financial supervision consolidation as the dependent variable. In particular, in a movement towards full consolidation in supervision, one can think of two sharp alternatives: a monopolist central bank or a pure single financial authority. Given that the degree of supervision consolidation seems to be inversely correlated with central bank involvement in supervision itself, the paper sheds light on the possible explanation of this trade-off. The trade off is tested using Probit techniques with a sample of 68 countries.