ELIGIBILITY OF THE FURTHER DELEGATION OF THE DICRETIONARY POWERS TO THE NATIONAL BANK OF UKRAINE
Abstract. The article presents the results of the analysis of the functions of National Bank of Ukraine and the Bank of England through the prism of the challenges imposed by the dynamic nature of the society and globalization processes. The article highlights the different approach used by two different countries (Ukraine and the U.K.) while implementing the same provisions of the Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 On payment services in the international market into the domestic law.
By the research it is proved that in order to guarantee the financial stability and at the same time provide the function of a supervisor, the central bank of a particular country does not need to have unlimited discretionary powers. In lieu of that, balanced system consisting of a range of fully and or partially independent from each other financial institutions and authorities shall cooperate and co-function under understandable and transparent rules.
The article partly underlines the dichotomy between the principles set by the European requirements in particular by the Directive (EU) 2015/2366 and the way in which the same is being implemented in Ukraine. The Bill «On payment services» № 4364 dated 12.11.2020 contains the provisions empowering the National Bank of Ukraine to act as a regulator and supervisor of financial payments market and simultaneously as a participant on the same market. Moreover, the broad discretionary powers of the central bank in Ukraine entails also some legislative functions. Such broad and even discriminatory powers which the National Bank of Ukraine might have are not in line with the European principles in particular and the rule of the separation of powers in general.
The distinction between the functions of the monetary regulator and supervisor of the financial payment institutions which the different institutions have in the UK proves that it is possible to reach a balance and to equilibrate the influence of the Central Bank and the Ministry of Finance and their relevant subordinate bodies in order to protect the financial stability and the sound state of the economy of the country.
Keywords: independence, payment services, discretion, implementation, financial stability, prudence, legal regulation, European principles.
JEL Classіfіcatіon E580, G23, G28, K20
Formulas: 0; fig.: 0; tabl.: 0; bibl.: 22.
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