The influence of the ECB on the formation of prudential requirements for credit institutions: Analysis of key changes and challenges

The aim of the article was to examine the evolution of the powers of the European Central Bank and the correlation with the competences of national regulators in the European Union. The study used a set of legal analysis methods. The use of the comparative legal method allowed the identification of the main differences in the regulatory approaches of the European Central Bank and national banking supervisory authorities. The formal legal method was used to analyse the content of the main regulations and directives of the European Union. The systemic approach contributed to the consideration of the legal regulation of banking activity in the European Union as a complex phenomenon combining macro- and microprudential supervision. As a result of the study, it was established that the European Central Bank played a key role in regulating banking activity within the European supervisory mechanism. At the same time, national regulators retained powers over the supervision of medium-sized and small financial institutions, which created a need for clear coordination between these institutions. It was found that strengthening the interaction between the European Central Bank and the European Systemic Risk Board could contribute to a prompter response to financial imbalances, as confirmed by the analysis of existing regulatory mechanisms. The main directions for improving macroprudential supervision were identified, in particular through the expansion of the functions of the European Systemic Risk Board and the creation of joint platforms for information exchange between regulatory authorities. The results obtained could be used for further improvement of EU regulatory policy and the development of effective financial supervision mechanisms aimed at reducing systemic risks in the banking sector

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Publication Details

Journal
Naukovij vìsnik Nacìonalʹnoï akademìï vnutrìšnìh sprav
Published
2025-04-24
DOI
https://doi.org/10.63341/naia-herald/2.2025.105
Primary Topic
European Monetary and Fiscal Policies
Type
article
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article

The influence of the ECB on the formation of prudential requirements for credit institutions: Analysis of key changes and challenges

Andriy Tsvyetkov
Naukovij vìsnik Nacìonalʹnoï akademìï vnutrìšnìh sprav
European Monetary and Fiscal Policies
article

The influence of the ECB on the formation of prudential requirements for credit institutions: Analysis of key changes and challenges

Andriy Tsvyetkov
article en

Abstract

The aim of the article was to examine the evolution of the powers of the European Central Bank and the correlation with the competences of national regulators in the European Union. The study used a set of legal analysis methods. The use of the comparative legal method allowed the identification of the main differences in the regulatory approaches of the European Central Bank and national banking supervisory authorities. The formal legal method was used to analyse the content of the main regulations and directives of the European Union. The systemic approach contributed to the consideration of the legal regulation of banking activity in the European Union as a complex phenomenon combining macro- and microprudential supervision. As a result of the study, it was established that the European Central Bank played a key role in regulating banking activity within the European supervisory mechanism. At the same time, national regulators retained powers over the supervision of medium-sized and small financial institutions, which created a need for clear coordination between these institutions. It was found that strengthening the interaction between the European Central Bank and the European Systemic Risk Board could contribute to a prompter response to financial imbalances, as confirmed by the analysis of existing regulatory mechanisms. The main directions for improving macroprudential supervision were identified, in particular through the expansion of the functions of the European Systemic Risk Board and the creation of joint platforms for information exchange between regulatory authorities. The results obtained could be used for further improvement of EU regulatory policy and the development of effective financial supervision mechanisms aimed at reducing systemic risks in the banking sector

Naukovij vìsnik Nacìonalʹnoï akademìï vnutrìšnìh sprav
National Academy of Internal Affairs (UA)
Openalex Percentile: Top 76%
European Monetary and Fiscal Policies
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