Legal regulation of banks with foreign capital in certain EU countries

Abstract

In the current environment, financial sustainability remains one of the most important long-term goals for any country. That is why finding opportunities to achieve it remains relevant. The purpose of this study was to provide recommendations for regulating banks with foreign capital in Ukraine based on data from the European Union countries. The main scientific methods were analysis, descriptive, comparison, and special legal research methods. As part of the study, it was shown that the countries of the European Union are actively taking actions to improve the financial stability of the banking sector. For this purpose, separate directives were formed, such as the Capital Requirements Directive, Capital Requirements Regulation, and the Basel III standards. In addition, some other directives were considered that affect the specifics of taxation in the region, the principles of reporting, the level of reliability of banks, and the transparency of accounting. It was shown that the banking sector of the European Union still faces problems, in particular, low profitability and problems in cooperation between banks and government agencies. The paper also provided separate recommendations for Ukraine, aimed primarily at bringing its banking legislation in line with international standards. However, it is important to understand that adaptation should also consider the specific features of the Ukrainian situation and correspond to local characteristics. The conclusions drawn in the framework of the study can be used to form a long-term state policy in the field of financial sector management